Author: FX
GBP/USD remains sidelined after rising to the highest level in five months. Overbought RSI, two-month-old resistance line challenge further upside. Bear need validation from the convergence of 200-DMA, previous resistance line from late June. GBP/USD treads water around mid-1.2200s after rising to the highest level since late June the previous day. In doing so the Cable pair portrays the market’s cautious mood ahead of the key US employment data while also justifying the price-negative technical signals. Among them, overbought conditions of the Relative Strength Index (RSI) line, placed at 14, gain major attention as the quote struggles after a two-day…
Who’s up for some comdoll trading today? If you are, then you better not miss what’s cooking on USD/CAD and NZD/JPY’s charts! Which setup will you more likely trade? USD/CAD 4-hour Forex Chart The U.S. dollar has done a great job of recovering from its November lows, climbing from the 1.3225 zone all the way to the 1.3600 psychological handle against the Loonie. USD/CAD has dipped back down, though, and is now trading just above the 1.3400 levels. As you can see, USD/CAD’s current prices line up with not only an ascending channel support but also the 100 SMA on…
Many traders say that it is the mental aspect of trading that causes traders to lose rather than the technical aspect of trading and I agree with this notion. Traders often lose not because they have a losing strategy but because they react to price movements emotionally. It is often the psychological aspect of trading that causes traders to make mistakes rather than the skill of the trader himself. The two main psychological reasons why traders make mistakes are fear and greed. Many traders would agree that they made mistakes usually because they fail to cash in on good profits…
Congress has mandated the sale of 147 million barrels of oil in the 2024-27 period to pay for infrastructure and other spending but now those sales could be reversed.The Biden administration is seeking to cancel or delay those plans, which start with 35 million barrels in 2024.It will be interesting to see where the oil market stands at that time but with prices at $81 now, China offline and producers showing discipline, I have a hard time seeing how they’re going to refill the reserve. As for this, the pace of sales was so slow that it’s hard to say…
US Dollar remains on the defensive, spurred by the ISM manufacturing PMI dropping to the contractionary territory. Inflation in the United States remained unchanged, while unemployment claims fell. The Australian Dollar got bolstered by a weaker US Dollar as traders eye RBA’s Governor Lowe. AUD/USD Price Analysis: Could test 0.7000 if the AUD/USD clears the 200-DMA. The Australian Dollar (AUD) advances in the New York session but retraces after hitting a new two-month high around 0.6840s as sentiment shifted sour. United States (US) economic data portrays a gloomy economic outlook while increasing borrowing costs by the Federal Reserve (Fed) would…
Introduction to the Fibo Bar Indicator The previous periods price range can often represent a price swing. It is common to see a scenario wherein the low of the previous period is a swing low and the high of the previous day is its corresponding swing high. In these scenarios traders can use the range of the previous day as a basis for plotting a Fibonacci tool. The Fibo Bar Indicator is a trading based on the concept of using the previous period’s range as the basis for the Fibonacci levels. What is the Fibo Bar Indicator? The Fibo Bar…
U.S. DOLLAR ANALYSIS & TALKING POINTSDovish rhetoric backed by U.S. core PCE.Key technical levels being tested on DXY. Recommended by Warren Venketas Get Your Free USD Forecast USD FUNDAMENTAL BACKDROPThe Dollar Index (DXY) remained depressed after the much anticipated core PCE print was released. On the face of it, the principal PCE and Core PCE indexes delivered forecasted figures (see economic calendar below) but looking at the better than expected initial jobless claims seemed to continue with the narrative delivered by Fed Chair Jerome Powell yesterday. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market…
The U.S. is printing its core PCE and ISM manufacturing reports! Will the releases bust EUR/USD out of its triangle consolidation? Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CHF’s range bounce or break situation after Australia printed its CPI and China reported its PMI numbers. Be sure to check out if it’s still a valid play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: Consumer-led rebound inspires upward revision of Q3 US GDP from 2.6% q/q to 2.9% EIA: U.S. crude stockpiles plunge as refiners surge activity…
The USD Index has tanked to 105.30 lows today from over 107.10 as Chair Powell more or less confirmed a 50bp hike at the next FED meeting, was sanguine about the terminal rate being over 5% and reiterated (again) that the fight to bring down inflation was far from over. He was as Hawkish as had been expected. Stocks & Treasuries ripped higher with optimism about China’s reopening prospects even after mixed US data yesterday. EUR – retakes 1.0450 from under 1.0300 lows yesterday.. JPY – collapsed to under 136.00 today from 139.85 highs yesterday…
Welcome to a brand new trading month! Let’s kick things off with a quick look at these bearish plays on Brent crude oil and EUR/JPY. Here are the levels I’m watching. EUR/JPY 4-hour Forex Chart Breakdown alert! EUR/JPY looks ready to bust through the bottom of its falling wedge pattern on the 4-hour time frame. If this pushes through, the pair could tumble by the same height as the chart formation or roughly 500 pips. What are technical indicators saying? The 100 SMA just crossed below the 200 SMA to confirm that bearish vibes are present, possibly taking the pair…