Author: FX
We got a lot of risk-off vibes this week as recession fears continued to grow in the minds of traders, as well as surprise inflation updates keeping traders on their toes with regards to central bank expectations. The Swiss franc was the big winner this week, while its usual “safe haven” buddy, the Japanese yen, fell to last place on speculation of potential policy shifts from the BOJ ahead. Notable News & Economic Updates: China services activity index shrunk from 48.4 in October to six-month low of 46.7 in November J.P.Morgan Global PMI Output Index fell to 48.0 in November…
Bank of England to hike rates by 50 bps, fresh forecasts coming up. Concerns about a global economic setback weighed on US indexes. GBP/USD trades near its recent multi-month high of 1.2343. The GBP/USD pair peaked at 1.2321 after Wall Street’s opening but trimmed intraday gains and hovers at around 1.2280. The pair ends the week flat, as demand for the US Dollar remained subdued. At the time being, US indexes trade mixed, with the Dow Jones Industrial Average and the S&P 500 in the red, but the Nasdaq Composite up measly 12 points. Generally better-than-anticipated US macroeconomic data has…
Though good, dedicated trading mentors are hard to come by these days, there are plenty of other forex traders out there who are willing to share tips that could help improve your trading performance. Let’s take a look at four classic nuggets that are easily taken for granted and why we should pay closer attention to them. 1. Adjust your expectations. Some newbies have unrealistic expectations because of “get rich quick” schemes that brought their attention to trading in the first place. Beginner traders usually expect to get the same returns as these strategies or TikTok videos have promised, sometimes…
Trading Leveraged Products is risky The USD Index is down at 104.55 for a 3rd day in a row. Wall Street rebounded with the US500 +0.75% (3963) gain breaking a string of five straight losses. Treasury yields rose slightly following the deceleration in unit labour costs & rise in jobless claims. However, the 2/10yr yields are still shouting Recession – the curve remains -83bps. China confirms weak activity once again (Nov. CPI -0.2% m/m from 0.1% m/m). UK regulators fine Santander £107mn for anti-money laundering failures The US is set to levy fresh sanctions against…
Looking to trade chart patterns today? I’ve got a couple of wedge formations on USD/CHF and AUD/USD right here! Check out this retest and potential breakout: USD/CHF 1-hour Forex Chart Breakout alert! The wedge consolidation on USD/CHF has been getting tighter and tighter, which means that the pair must be gearing up to bust out soon. But which way will it go? Moving averages are pointing to a potential bearish move, as the 100 SMA is below the 200 SMA to reflect downside pressure. If USD/CHF closes below the wedge support around the .9350 minor psychological mark, we might just…
#PayPal,Weekly #PayPal’s stock price has eroded around -76% since forming the ATH peak (309.47) in July 2021 until today. The bearish trend of 2021 was extended in 2022 by erasing all the gains that had been accumulated since 2018. The current bearish trend is due to various factors, including its declining revenue. In the previous quarter, the financial report showed that the company’s revenue fell by -18% compared to the same period last year. Indeed, stock prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has…
If you were born in the 80s or 90s, you would have remembered a game called “pinball”. This game had a solid ball that would bounce off obstacles. Each obstacle or target that was hit would earn you some points. The goal of this game is to keep the pinball from falling while hitting the targets at the same time. Trading the forex markets is like playing pinball. The pinball would be price. Price should bounce off obstacles, which are the supports and resistances. Each time price bounces off one of these levels, it should move towards the next support…
Introduction to the Ichimoku Cloud Indicator The Ichimoku Kinko Hyo Indicator is one of the few technical indicators which can claim to be a complete trend following trading system. The Ichimoku Cloud Indicator uses the long-term trend component of the Ichimoku Kinko Hyo system so that traders may combine it with other short-term trend indications. What is the Ichimoku Cloud Indicator? The Ichimoku Cloud Indicator is a long-term trend following technical indicator which is based on the Ichimoku Kinko Hyo Indicator. This indicator plots a cloud-like area which is called the “Kumo”, which means “Cloud” when translated from Japanese. This…
USDIndex, H1 US initial jobless claims edged up 4k to 230k in the week ended December 3 following the -15k drop to 226k in the November 26 week. Claims are up from the 5-month low of 190k in the September 23 week, and a 53-year nadir of 166k in March, but are down from the 241k from the November 18 week which was the highest since mid-August. The 4-week moving average ticked up to 230k after edging up to 229k previously. Initial claims not seasonally adjusted surged 87.1k to 286.4k after dropping -49.7k to 198.3k. The US holidays are a…
Trading any kind of tradeable instrument, whether it be in the stock market, indices, bonds or commodities, is a difficult endeavor. Trading the forex market is a different beast. The forex market is probably one of the most difficult types of trading market that traders could dabble with. This is because unlike the above aforementioned tradeable instruments, currency pairs entail that traders are trading in a tug of war of supply and demand between two currencies. For example, a trader is looking to trade the EUR/USD pair. There are several factors that could occur. The EUR might gain demand and…