Tag: Trade Setup

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Forex Market Analysis

Daily F.X. Analysis, May 18 – Top Trade Setups In Forex – Sideways Trading In Play!

On the news front, the economic calendar remains busy on Friday. Today’s releases may trigger some price action in the Euro and U.S. related pairs, especially on the release of German GDP, Eurozone Flash GDP, and U.S. core retail sales figures, which are due to come out during European and U.S. session respectively.

On the news front, the economic calendar remains busy on Friday. Today’s releases may trigger some price action in the Euro and U.S. related pairs, especially on the release of German GDP, Eurozone Flash GDP, and U.S. core retail sales figures, which are due to come out during European and U.S. session respectively.

On the news front, the economic calendar remains busy on Friday. Today’s releases may trigger some price action in the Euro and U.S. related pairs, especially on the release of German GDP, Eurozone Flash GDP, and U.S. core retail sales figures, which are due to come out during European and U.S. session respectively.

Economic Events to Watch Today 

 

 

EUR/USD – Daily Analysis

During the early Asain trading session, the EUR/USD pair was closed at 1.08181 after placing a high of 1.08509 and a low of 1.07887. Overall the movement of the EUR/USD pair remained bullish throughout the day.

EUR/USD pair gained on Friday after falling for two consecutive days and recovered some of its weekly losses at the ending day of the week. 

The pair recovered its upward trend on the back of stronger EUR against weaker USD. Euro remained robust due to better than expected economic data from the whole bloc, and the U.S. dollar was ineffective due to poor than expected data on Friday. At 11:00 GMT, the German Purchasing Price Index for April was released, which showed a decline of 0.7% against the expected decline of 0.6% and weighed on single currency Euro. At 11:45 GMT, the French Final CPI for April came in as 0.0% against the expected 0.1% and weighed on Euro. 

At 13:00 GMT, the German Prelim GDP for the quarter came in line with the expectations of -2.2%. At 14:00 GMT, the Flash Employment Change for the quarter came in as -0.2% against the expectations of -2.0% and supported Euro. The Flash GDP for the whole bloc during the quarter came in line with the expected -3.8%. The Trade Balance for the whole bloc showed a surplus by 23.5B against the expected 17.2B and supported Euro.

Better than expected Employment data and Trade Balance from the whole bloc gave strength to the single currency and moved the pair towards the upside. On the other hand, the U.S. dollar was weaker against EUR due to poor than expected Retail Sales and Industrial Production data on Friday. The headline U.S. Retail Sales dropped by 16.4% during the month of April and weighed on the U.S. dollar while the Core Retail Sales were dropped by 17.2%, which added in the weakness of the dollar against Euro and moved the pair EUR/USD on the upside direction.

The U.S. Industrial Production showed a decline by 11.2% in the month of April against the forecasted decline by 11.5%, despite falling under the expected figure, the drop in U.S. industrial production gave an impact of weak U.S. economy and weighed on U.S. dollar. Stronger Euro against U.S. dollar and weaker dollar combined gave a push to EUR/USD pair on Friday to place a high of 1.08509.

Daily Support and Resistance

  • S1 1.0673
  • S2 1.0758
  • S3 1.079

Pivot Point 1.0843

  • R1 1.0874
  • R2 1.0928
  • R3 1.1013

EUR/USD– Trading Tip

The EUR/USD is trading at 1.0817, trading below 50 periods EMA resistance at 1.0838 level. Last week, the pair bounced off over the double bottom support level of 1.07756. On the 4 hour chart, the EUR/USD is closing candles within a symmetric triangle pattern, which drives mixed sentiment in the market. Extension of selling below 1.0843 level may lead the EUR/USD prices towards 1.07782 level, and below this, the next support is likely to be found around 1.0730. Consider staying bullish above and bearish below 1.0770 level today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.21040 after placing a high of 1.22386 and a low of 1.31013. Overall the movement of pair remained bearish throughout the day. The GBP/USD pair was dropped to its fresh seven-week lowest level near 1.2100 on Friday on the back of the sudden pickup in demand for the U.S. dollar at last hours. Despite poor than expected Retail Sales data from the United States on Friday, the pair GBP/USD was dropped to its multi-week low level at the ending day of the week.

The growing fears of second-wave of coronavirus faded the hopes for quick global economic recovery and weighed on the U.S. dollar. The already weaker trend was then escalated after the relationship between the United States and China started to become even worse. The Sino-US relation headed towards a renewed trade war, especially after the U.S. commerce department cited security concerns against China on Friday. The U.S. Commerce Dept. took another step to cut off Chinese telco Huawei from the overseas chip manufacturing companies. 

The U.S. also accused Huawei of building backdoors in network infrastructure to help the Chinese government spying efforts. Huawei repeatedly denied this accusation of spying efforts by Trump’s administration. Chinese officials have said they would respond to this, which decreased the risk appetite and gave a push to the greenback’s perceived safety-haven status. This ultimately dragged down the pair GBP/USD on Friday as there was no economic data to be released from the United Kingdom. The pair’s movement was solely dependent on the greenback’s demand.

Furthermore, over the weekend, the Cabinet Office Minister Michael Gove said that Brexit negotiations were going well, but E.U. needed to show some flexibility. He added that very little progress was made after the third Brexit talks, which were conducted on Friday. Both sides have shown frustration over the slow progress in trade talks, and the U.K. has geared up its preparations to leave the block without any deal. The U.K. has already said that it will not extend the negotiations process beyond December 31. 

The sticking point during the negotiations has been the access to fishing waters. E.U. wanted to have the same access they had to the U.K.’s fishing water, but Britain was not allowing it. If no-deal Brexit happened then, both parties would have to follow the rules of the World Trade Organization. On the other side, E.U.’s top negotiator, Mr. Barnier, has said that the U.K. could not have the best of both worlds, and if it were meant to be No-deal Brexit, then E.U. would step up to prepare for no-deal outcomes. 

The E.U. has also denied that the U.K. was wrong to think that slowing the process of talks would end up E.U. accepting the deal at any price. Growing fears of No-deal Brexit also caused GBP’s weakness against the U.S. dollar and dragged the pair to its lowest for seven weeks.

Daily Support and Resistance

  • R3 1.2137
  • R2 1.2123
  • R1 1.2104
  • Pivot Point 1.209
  • S1 1.2071
  • S2 1.2057
  • S3 1.2038

GBP/USD– Trading Tip

The GBP/USD fell into the oversold zone to trade at 1.2070 level, but the recent closing of Doji candle and bullish engulfing above 1.2076 support zone is likely to drove bullish correction in the market. On the higher side, the GBP/USD is likely to provide resistance around 1.2177, while the support level continues to hold around 1.2070. Below this, the next support could be found around 1.2040, which is extended by the bottom of the downward channel and can be seen on the 4-hour chart. Let’s consider staying bullish above 1.2070 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.086 after placing a high of107.434 and a low of 106.855. Overall the movement of the USD/JPY pair remained bearish throughout the day. The decreased appetite for the risk helped the safe-haven JPY to gather strength in the early American trading session and dragged the USD/JPY pair prices on Friday below the 107 level. However, the pair USD/JPY managed to erase some of its daily losses after gaining traction in the late trading session.

 At 4:50 GMT, the Purchasing Price Index for the year from Bank of Japan was released, which dropped to -2.3% against the forecasted decline by -1.4% and weighed on JPY. From the American side, the closely watched Retail Sales data was released, which came in poor than expectations and weighed on the U.S. dollar. At 17:30 GMT, the Core Retail Sales for April dropped by 17.2% compared to -8.6% forecasted. The Retail Sales from the United States also declined in April by 16.4% while it was expected to be decreased by 12%.

More than expected decline in the total value of sales at the retail level from the United States during the previous month showed a decline in consumer spending and gave the negative impact of the U.S. economy, which in turn weighed on U.S. currency. Weak USD dragged the USD/JPY pair along with it below the 107 level on Friday.

The Empire State Manufacturing Index showed a decline to 48.5 against the expected reduction of 65.0. At 18:15 GMT, the Capacity Utilization Rate, which measures the capacity by which raw-material was used by manufacturers during April increased to 64.9% from the forecasted 63.9% and supported USD.

The Industrial Production in April also dropped by 11.2% but remained less than the forecasted decline of 11.3%. At 19:00 GMT, the Consumer Sentiment from the University of Michigan showed an improvement in consumers’ confidence over the U.S. economy when released as 73.7 against 68.0 in May. 

Daily Support and Resistance    

  • R3 109.37
  • R2 108.57
  • R1 108.12

Pivot Point 107.33

  • S1 106.88
  • S2 106.09
  • S3 105.64

USD/JPY – Trading Tips

On Monday, the USD/JPY traded bearishly to trade below the support level of 107, which marked the 50% Fibonacci retracement level. The USD/JPY is holding at 107.05, where the 50 EMA is supporting the pair, and it may drop further below the 107 level. At the moment, the 4-hour candle appears to close below 107 support become resistant, and this may drive more selling in the USD/JPY pair. The pair may extend selling until 106.600 level, whereas the closing of buying candles above 107 can trigger bullish bias until 107.50. By the way, bearish bias seems solid today. All the best for today! 

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Forex Market Analysis

Gold Holds Below Top Triple Pattern – Can Retail Sales Drive Breakout?

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

Earlier in the morning, the yellow-metal erases some gains in the wake of Increasing odds of no negative rates. While the possibility of another stimulus recently favored the market risk-tone before the China data. At this moment, the yellow-metal prices are currently trading at 1,735.55 and consolidate in the range between the 1,728.84 – 1,738.61.

China showed a confusing picture of its recovery from the COVID-19 virus as it’s said that industrial production in April rose 3.9% year-on-year, higher than the 1.5% predicted by analyst forecasts. Whereas, it also said that retail sales in the same month slipped 7.5% year-on-year, against analyst estimates of a 7% drop. The U.S. showed that 2.981 American citizens lost their jobs during the past week, Anyhow, the number of unemployment has been declining gradually over six weeks, but 36 million claims have been filed so far since late March.

On the other hand, the market risk sentiment got some support during the earlier morning from the increasing odds of another stimulus from the U.S., as well as, the reason for the risk-on market sentiment could also be attributed to the statement from the Fed policymakers about ruled out negative Fed rates.

Apart from these, the yellow-metal bullish moves also bolstered by the bill, which is recently passed by U.S. Senate about enabling the administration to fresh levy sanctions on Chinese officials involved in the Xinjiang case.


Support Resistance
1722.44 1752.94
1703.97 1764.97
1691.94 1783.44
Pivot Point 1734.47

Gold prices continue to hold below the triple top resistance level of 1,740. Bullish crossover of this level may drive more buying in gold, leading to its prices towards the next resistance level of 1,748. The support continues to hold around 1,728 and 1,722 level today, while the MACD is showing neutral sentiments ahead of the release of U.S. retail sales data. Besides this, the 50 EMA is also supporting the gold’s bullish bias today. Let’s keep an eye on 1,740 as selling can be seen below this, and buying above the same level today. Good luck! 

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Forex Market Analysis

Safe Haven Gold on Fire – Triangle Pattern Breakout! 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

The US-China intensifying tension and the risk of coronavirus second wave also weighed on the risk sentiment, which eventually supported the safe-haven assets like gold. At this moment, the safe-haven-metal prices are currently trading at 1,716.21 and are consolidating in the range between 1,711.21 and 1,719.80.

The Federal Reserve Chair Powell said that negative interest rates were not needed yet. In the meantime, the Cleveland Federal Reserve President Loretta Mester said, we cannot consider “negative rates” as an excellent tool for supporting the economy. If talking about Powell’s speech, the Federal Reserve’s chairman warned about the scope and speed of the continuing economic downturn while comparing the recession pace with the World War II recession. 

The reason behind the risk-off market sentiment is the US-China tussle. It would be worth mentioning that the recent aggressive words from China came after U.S. President Trump directed the board of Federal retirement savings fund to stop investing in the Chinese stocks.


Recently, the XAU/USD broke out of the symmetric triangle pattern, which was providing resistance at 1,718, and now it’s trading bullish at 1,735. The recent bullish trend in gold came in response to worse than expected Jobless claims data from the U.S. As per the U.S. labor department, the advance figure initial claims were 2,981,000, a drop of 195,000 from the prior week’s updated level is reported. A weaker dollar has triggered the bullish trend in gold, and now it’s likely to lead gold prices towards 1,740. Now, we may see bearish correction below 1,740, while further buying trades can be taken above 1,720. All the best! 

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Forex Market Analysis

USD/CAD on a Bullish Mode – Forms Higher’s High & Highers Low Pattern In Play!

During Thursday’s Asian trading hours, the WTI crude oil prices looking directionless despite Wednesday’s decrease US inventory report. However, the crude oil prices trading mostly unchanged on the day near the $25.40. Technically, the 4-hour chart shows prices are confined between the tight price range outlined by the trendlines from May 7 and May 13 highs and May 6 and May 7 lows. 

During Thursday’s Asian trading hours, the WTI crude oil prices looking directionless despite Wednesday’s decrease US inventory report. However, the crude oil prices trading mostly unchanged on the day near the $25.40. Technically, the 4-hour chart shows prices are confined between the tight price range outlined by the trendlines from May 7 and May 13 highs and May 6 and May 7 lows. 

During Thursday’s Asian trading hours, the WTI crude oil prices looking directionless despite Wednesday’s decrease US inventory report. However, the crude oil prices trading mostly unchanged on the day near the $25.40. Technically, the 4-hour chart shows prices are confined between the tight price range outlined by the trendlines from May 7 and May 13 highs and May 6 and May 7 lows. 

The reason for the confined trading could be attributed to the risk-off market sentient and second wave of coronavirus, which turned out to be one of the key factors that kept a lid on any gains in oil prices. The WTI crude oil is trading at 25.82 and consolidate in the range between the 25.20 – 26.00.

A range breakout would indicate a continuation of the recovery rally from lows below $10 observed in April. However, a bearish reversal would be confirmed if the range is breached to the downside. 

Thus, the breakout can’t be rejected because the US inventory report released Wednesday showed the 1st-decline in outputs since January. The US crude inventories dropped by 745,000 barrels last week, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 4.1 million-barrel rise.

Support Resistance 

1.4032       1.4144

1.3962       1.4186

1.3919       1.4256

Pivot Point 1.4074

For the time being, the investors are cautious about placing any strong position mainly due to the fear of coronavirus second wave caused y easing lockdowns. As well as, the reason for the risk-off market sentiment could also be attributed to the renewed concerns concerning the economic slowdown. 

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Forex Market Analysis

WTI Crude Oil Slipped to $25.75 – Sideways Channel Intact! 

The WTI crude oil prices dropped to $25.90, mainly due to the price-positive API data, which revealed a rise in U.S. crude inventories. The tensions about a potential second wave of coronavirus cases after countries starting to ease lockdowns also keep the oil prices under pressure. 

The WTI crude oil prices dropped to $25.90, mainly due to the price-positive API data, which revealed a rise in U.S. crude inventories. The tensions about a potential second wave of coronavirus cases after countries starting to ease lockdowns also keep the oil prices under pressure. 

The WTI crude oil prices dropped to $25.90, mainly due to the price-positive API data, which revealed a rise in U.S. crude inventories. The tensions about a potential second wave of coronavirus cases after countries starting to ease lockdowns also keep the oil prices under pressure. 

Moreover, China’s war with the U.S. and Australia also weighed down on the oil market. At this moment, the WTI crude oil is currently trading at 25.36 and consolidates in the range between the 25.07 – 25.79. The weekly announcement of a private stockpile report from the American Petroleum Institute (API) indicates a build of 7.64 million barrels versus the prior extension of 8.44 million barrels into the stockpiles.

The idea for recent support in the oil prices could be connected to the further request by Saudi Arabia for more extensive output cuts to balance the market induced by virus-induced demand disruption. The recent reopening of major economies’ confidence also supporting the oil prices.

On the other hand, the United States started once again to announce the new claims of coronavirus following easing coronavirus restraints and revived nonessential businesses in U.S. states as per the previous FDA Commissioner Dr. Scott Gottlieb. Whereas, China and South Korea are also fighting to control second wave outbreaks that spread during the weekend, While, Korea showed 26 new cases on May 12. As in result, the oil demand could face further crisis ahead.

Recently, the Energy Information Administration announced Wednesday that U.S. crude stockpile report which slipped by 700K barrels for the week ended May 8.

Daily Support and Resistance

  • S1 22.23
  • S2 23.74
  • S3 24.66

Pivot Point 25.25

  • R1 26.16
  • R2 26.75
  • R3 28.26

The U.S. oil is consolidating at 26.04 within a symmetric triangle pattern, which is rendering tripe top resistance at 26.70 along with support at 25.10 and 24.10. While bullish crossover of 26.70 may lead to WTI prices towards 27.30. Good luck! 

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Forex Signals

Gold bounces off the Linear Regression line and heads up to meet the top of the channel

The idea

The idea

The idea

Gold has been having a corrective movement lately. The price has created a slightly descending channel. If we draw a linear regression channel we can easily see the consensus of price, represented by the mean line, which is the average line of the price set for the range, and the edges of the channels are set at ±2 Sigmas (standard deviation) of the centerline.

On the 2H chart we see that, after the price did a higher low below the centerline, it went up, and consolidated for a while above that line. Today it made an engulfing figure that broke through the recent range and is heading up.

A long position was entered at 1,711.12 with a stop-loss at $1,699.12 and a take profit of 1,725.12, which gives a reward to risk ratio of 1.17, which is less than the usual, but also the target can be reached easier, as it is not set at the top of the channel but at the recent high of the price, made on May 08.

Main levels:

  • Long entry: 1,711.12
  • Stop-Loss: 1,699.12
  • Take-profit: 1,725.12

Reward/Risk Ratio: 1.17

Dollar Reward and Risk

  • Risk:$1200 per lot, $120 per mini lot, 12 per micro lot
  • Reward: 1400 per lot, $140 per mini lot, $12 per micro lot.

 

 

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Forex Signals

CADJPY triple bounce off the upper linear regression channel boundary

The Setup

The Setup

The Setup

Fig 1 – CADJPY triple bounce off the upper linear regression channel boundary

CADJPY has been obeying a slightly descending linear regression channel. On the 60 min chart, the ± 2 sigma lines are shown in blue, whereas the regression line, is shown in dotted white. In that chart, we can observe that the price has bounced three consecutive times off that line, and now, in its third bounce, it also pierced its 50-hour SMA to the downside.

A trade can be created with an entry at the current price and a target neat the bottom of the channel, for an excellent reward to risk factor. The rationale for this type of trade is the following. On channels like that, the odds of a reversal from a 2 sigma line is high, at least 95% of the time. The issue here is the reversal is strong enough to reach our target? Usually, it is highly likely a movement to touch the mid of the channel, but, since here the channel is descending, the odds of it moving to the bottom is higher. We will follow this trade, though, and adapt our stop-loss level and take profit as we see how the bearish momentum evolves.

Key Levels

  •         Entry: 76.495
  •  Stop-Loss: 76.895
  • Take-profit: 75.295
  • Reward/Risk: 3

Dollar Risks and Rewards

Risk: 40 pips = $372 per lot, or $37.2 per mini lot.

Reward: 120 pips = $1,117 per lot, or 111,7 per mini lot

 

Categories
Forex Signals

Gold Breaking Below 50 EMA and Support – Brace for Selling!

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The Consumer Credit for the month of March was released from the Federal Reserve of the U.S., which showed a decline by -12.0B against the expectations of positive 14.9B. This weighed on the U.S. dollar and limited the downfall of gold prices on Friday. 

Furthermore, the latest economic data from the United States fueled expectations that the Federal Reserve will stimulate more in the next meeting, and markets started to price in for a negative interest rate environment. On Saturday, President Donald Trump said that the United States would purchase $3B worth of dairy & farm products in order to help the struggling U.S. farmers. He stated that the government’s purchase would be a part of “Farmers to Family Food Box.” 

The demand for agricultural products was decreased due to the lockdown caused by the coronavirus pandemic, which started in March, and it has disrupted the supply chains across the nations. This has caused some U.S. farmers even to destroy their products, which they can’t store.  Donald Trump also said with no evidence that coronavirus pandemic will go away without a vaccine. He spared the specifics, said that other viruses also disappeared, and the same would happen with this COVID-19. He added that viruses die too like everything else, and he was hopeful that this virus would also go away after some time.


Daily Support and Resistance  

Support Resistance

1,699.50 1,731.90

1,685.10 1,749.90

1,667.10 1,764.30

Pivot Point: 1,717.50

 

XAU/USD – Daily Trade Sentiment

Gold is trading with a bearish bias, holding mostly below 1,710 resistance level. Gold is trying to cross below the 50 EMA support area, which can lead to gold prices further lower towards 1,694 level. Alongside, the RSI is also holding below 50, suggesting odds of selling bias in gold. 

On the upper side, gold’s resistance is expected to be found near 1,720 and 1,737, whereas the support continues to stay around 1,694 regions. In case of a downward breakout, gold prices may slip towards 1,671 level.

  • Entry Price: Sell at 1700.8    
  • Take Profit .1688.8    
  • Stop Loss 1708.3    
  • Risk/Reward 1.60

Profit & Loss Per Standard Lot = -$750/ +$1200

Profit & Loss Per Micro Lot = -$75/ +$120

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Forex Videos

The Free Forex Academy Signal Service! Over £18,000 made already! Part Two!

https://youtu.be/NPZAWNX2EFw

https://youtu.be/NPZAWNX2EFw

How You Can Make Money Using Forex.Academy’s Free Trading Signals Service – PART 2

Welcome to how can you make money using forex academies free trading signals service part 2. By connecting to the Forex.Academy website and clicking the tab for our Free Trading Signals Service, you will find this page.
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Trades will either be instant execution or pending orders and where you will be able to keep an eye on the trade table as and when these opportunities are presented, in which case you can pick and choose which trade to copy on your own trading platform. Having looked at the technical set up that the trader has uploaded in the method section, you then simply add stop loss and take profit

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Another benefit of having an account with the EagleFX is that you will also be notified automatically of key FX levels, which act as magnets for price action in the spot forex market. You can also find details of these on the forex academy website by clicking on the market update tab and scrolling down to FX options.
So, as you can see, if you are a novice trader, you have the ability to research the trade, and if you like it, you can copy them onto your own platform having confidence in the expertise of the professional trader who set the trade signal up in the first place. This will help you to grow as a trader, as you steadily learn more about trading via this unique option.
Of course, it might be that you are a seasoned trader and hence you are still happy with the methods that you find on our trade table, and perhaps you want to spend a little less time looking at setups yourself, in which case you can copy our free signals in order for you to enjoy that lifestyle choice.

Please also keep an eye out for the relevant marketplace for ‘Signal Academy’ Android and IOS trading signals apps, which we are developing and which will be available to download soon.

Categories
Forex Signals

GBPUSD bounced off supports: Regression Channel bottom and 200-SMA

The Setup

The Setup

The Setup

GBPUSD has created a descending leg inside a linear regression channel, which is pointing slightly upwards.  The pair has bounced near the -2Sigma line that signals the bottom of the channel. We see also that, after piercing the 200-SMA line it soon recovered and is back above it. Additionally, we see that the price has made a kind of morning star figure, with a strong candle that engulfed the last two bearish candlesticks.

A buy-stop order at the high of the last candle in progress could create a movement to the upside, seeking the top of the channel, helped by the sentiment of investors about the relief by the UK government of the confinement British people are enduring due to the COVID-19 pandemic.

Main Levels

Entry stop-buy: 1.2386
     Stop-loss: 1.2295
 Profit Target: 1.2568

Risk and reward:

The risk is 91 pips or $910 per lot, $91 on a mini-lot, and $9.1 on a micro-lot.

The reward is 182 pips, or $1,820 per lot, $182 on a mini-lot and $18.2 on a micro-lot

The Reward-to-risk factor is 2.

 

 

Categories
Forex Signals

Bitcoin Breaks the triangle formation to the Upside

The Setup

The Setup

The Setup

Bitcoin has been creating a consolidation range after the extensive bullish impulse made on April 29. The consolidation is also within the upward channel. Lately, the price is making a breakout of the triangle, and above the $9,000 resistance level. Also, the MACD made a bullish crossover, and the RSI is progressing and touching the 60 level.

Also, BTC price moves above its 20-, 50- and 200-period SMA which means the underlying trend is up.

A trading plan can be made, assuming the continuation of the bullish trend, with an entry above the current price of $9,100, with a stop below the recent low, and betting that at least the price will try to hit the last high of $9,442

The key levels

Risk and Reward

This trade has a $300 risk and $340 profit. for every bitcoin unit.

Reward/risk = 1.13

We recommend taking no more than 0.1 BTC for every $1000 in your account.

 

Categories
Forex Market Analysis

WTI Crude Oil Reaches Double Top – Is It Good Time to Short?

The WTI crude oil prices soar to trade at 17.79 level despite an increased number of inventories. The quantity of crude oil owned by private companies that are incapable of selling the product due to the novel coronavirus (COVID-19) pressure seems to set an all-time high in the weeks ahead. 

The WTI crude oil prices soar to trade at 17.79 level despite an increased number of inventories. The quantity of crude oil owned by private companies that are incapable of selling the product due to the novel coronavirus (COVID-19) pressure seems to set an all-time high in the weeks ahead. 

The WTI crude oil prices soar to trade at 17.79 level despite an increased number of inventories. The quantity of crude oil owned by private companies that are incapable of selling the product due to the novel coronavirus (COVID-19) pressure seems to set an all-time high in the weeks ahead. 

Global producers may develop creative measures to find crude storage, which caused by the lack of physical demand due to coronavirus lockdowns, while US President Donald Trump made a commitment to deliver a system to help the country’s oil companies, which also helped the sentiment around the commodity. The Treasury Secretary Steven Mnuchin said the plan could add millions of barrels of oil to already-teeming national reserves.

At the US-China front, US President Donald Trump’s stoked fresh trade war between China and the United States, which weighed on the risk sentiment but not so much. On the other hand, the Fed’s dovish pause and positive updates on the virus medicine have recently improved market sentiment, which is growing crude oil prices.


Daily Support and Resistance

  • S1 9.99
  • S2 13.21
  • S3 14.95

Pivot Point 16.44

  • R1 18.18
  • R2 19.66
  • R3 22.89

On the technical front, the U.S. Oil is holding below the strong double top resistance level of 18.35. On the 4 hour timeframe, WTI seems to close a Doji candle below this level, and if it actually happens, we may see oil prices falling further until 23.6% and 28.2% Fibonacci support areas of 16.33 and 15.17 respectively. The MACD is suggesting an overbought scenario, while the 50 EMA is also far from the CMP (current market price), so we may see a selling opportunity. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, April 30 – Top Trade Setups In Forex – Brace for ECB Rate Decision! 

On the forex front, the ICE U.S. Dollar Index dropped 0.4% on the day to a two-week low of 99.48, posting a four-day decline. The European Central Bank will announce its interest rates decision (deposit facility rate unchanged at -0.5% expected). The European Commission will post 1Q GDP (-3.4% on year expected) and March jobless rate (7.8% expected).

On the forex front, the ICE U.S. Dollar Index dropped 0.4% on the day to a two-week low of 99.48, posting a four-day decline. The European Central Bank will announce its interest rates decision (deposit facility rate unchanged at -0.5% expected). The European Commission will post 1Q GDP (-3.4% on year expected) and March jobless rate (7.8% expected).

On the forex front, the ICE U.S. Dollar Index fell 0.4% on the day to a two-week low of 99.48, posting a four-day decline. The European Central Bank will announce its interest rates decision (deposit facility rate unchanged at -0.5% expected). The European Commission will post 1Q GDP (-3.4% on year expected) and March jobless rate (7.8% expected).

The U.S. Labor Department will release initial jobless claims in the week ended April 25 (3.5 million expected). The Commerce Department will report March’s spending (-5.0% on month expected) and personal income (-1.5% on month expected). The Market News International will release April Chicago PMI (37.7 expected).

Economic Events to Watch Today     

  

 

EUR/USD – Daily Analysis

The EUR/USD soared over 0.5% to 1.0876. The economic figures revealed that the eurozone’s Economic Confidence Index slipped to 67.0 in April (73.1 expected) from 94.2 in March. Meantime, traders are awaiting the European Central Bank to maintain its key rates unchanged later today. Also, the eurozone’s first-quarter GDP (-3.4% on year estimated) and March jobless rate (7.8% expected) will be reported.

At the USD front, the dollar index’s (DXY) bounce from the 13-day low of 99.45 reached during Tuesday’s American trading hours, and it ran out of steam near 99.90 early on Wednesday. It’s mostly because both the S&P 500 futures and Asian stocks climbed, as in result greenback is losing its haven demand. 

On the flip side, the European Central Bank will likely hold its policy unchanged and show a willingness to give more monetary stimulus if required. The EUR will likely give importance to the ECB’s moves on sentiment than traditional monetary policy signals.

At the USD front, the monthly safe-haven demand for the U.S. dollar also kept currency pair under pressure during the April month. The U.S. Dollar Index hit a daily low at 99.54 earlier in the morning but remained above Tuesday’s lows. Equity prices held on to gain.

At the coronavirus front, the number of confirmed coronavirus cases rose to 159,119, with a total of 6,288 deaths reported as per the German disease and epidemic control center report. While. The cases rose by 1,478 in Germany, the daily rate of increase shows rise to 0.9% from 0.8% on Wednesday. The death losses rose by 173 vs. 202 seen a day before.

Traders will keep their focus on the Eurozone CPI and GDP data ahead of the ECB policy decision. The coronavirus headlines and U.S. dollar dynamics could entertain the traders during the day ahead.


Daily Support and Resistance

  • S1 1.0774
  • S2 1.082
  • S3 1.0847

Pivot Point 1.0867

  • R1 1.0894
  • R2 1.0913
  • R3 1.0959

EUR/USD– Trading Tips

The technical side of the EUR/USD is more or less the same as yesterday. The EUR/USD is trading bullish around 1.0877 as the U.S. dollar seems to face bearish pressure due to dovish FOMC. The EUR/USD has the potential to go after 1.0882, and bullish breakout of this level may drive EUR/USD prices further higher until the next resistance level of 1.0960. 

The trading sentiment for the EUR/USD continues to be bullish, especially after the bullish crossover of 50 EMA and MACD. Both of the leading indicators are supporting bullish trend with immediate support around 1.0814. We should consider taking buying trades above 1.0840 today. 

GBP/USD – Daily Analysis

During Thursday’s Asian session, the GBP/USD currency pair extended its recovery moves from 1.2430 to 1.2470 but still considered bearish and trading below the 1.2500 level while representing 0.05% losses on the day mainly due to the broad-based U.S. dollar recovery pullback. The persistence criticism on Tory government policymakers’ performance about securing the personal protective equipment keeps the British Pound under pressure. 

The GBP/USD is currently trading at 1.2478 and consolidates in the range between the 1.2429 – 1.2485. However, traders are cautious about placing any strong position ahead of coronavirus briefings by the UK PM Boris Johnson.

The Tory leader failed to head any daily coronavirus briefings even after the UK PM Boris Jonson returned to the office. Whereas, the reason behind the British PM Johnson’s little presence yesterday could be the news of his fiancée giving birth to a baby boy. On the other hand, the United Kingdom leader met with opposition Labour Party leader Keir Starmer and discussed the proceedings to combat the crisis.

The Tory party has been under pressure mainly due to the latest coronavirus report, which shows the U.K. as having the second-highest death toll in Europe. As well as, the criticism about the policymakers’ performance on securing the personal protective equipment (PPE) added further pressure on the Tory government. Despite this, the UK Tory government still claims to be on the top of performance while showing a coronavirus tracking app that warns the user when the contact with peoples infected by COVID-19,

On the flip side, the Foreign Secretary Dominic Raab said that the U.K. must pass and secure a Brexit deal by the end of the year to provide businesses, and this will be the best chance to ‘bouncing back’ economy from the coronavirus pandemic.

At the US-China front, U.S. President Donald Trump’s fueled fresh trader war between China and the United States, which sent the currency pair lower as the dollar caught bids in the wake of safe-haven demand. On the other hand, the Fed’s dovish pause and positive updates on the virus medicine have weighed on the U.S. dollar previously.

Daily Support and Resistance

  • S1 1.2315
  • S2 1.2371
  • S3 1.24

Pivot Point 1.2427

  • R1 1.2456
  • R2 1.2483
  • R3 1.2539

GBP/USD– Trading Tip

The GBP/USD continues to trade upward around 1.2479 area, as it’s maintaining a fresh trading range of 1.2525 – 1.2396. The GBP/USD has developed a bullish channel, which is supporting it around 1.2396 along with resistance around 1.2501. On the higher side, a bullish breakout of 1.2520 opens up further room for buying until 1.2560 and 1.2626 level. 

The GBP/USD pair is holding a buying zone, above 50 EMA, which is also supporting the cable around 1.2409. Since the MACD is holding above 0, which demonstrates that one should be looking to enter a buying trades in the GBP/USD pair. Consider staying bullish above 1.2430 and bearish trades below 1.2520 level today. 

USD/JPY – Daily Analysis

The USD/JPY lost 0.2% to trade around 106.61. The economic figures showed that Japan’s industrial production fell 3.7% on month in March, which is less than expectations of -5.0%, and retail sales declined by 4.5%. The currency pair failed to cheer the Japanese yen’s weakness and dropped to 6-weeks low yesterday. 

The USD/JPY is trading at 106.64 and consolidates in the range between the 106.39 – 106.89. Whereas, the safe-haven demand for the U.S. dollar continues to lose due to risk-on sentiments in the stock market amid hopes of re-opening of the economies in Australia, New Zealand, and parts of Europe. 

The currency pair continues to follow the broad-based U.S. dollar directions so far this week, with the latest stop in the dollar decline offering some support. The U.S. dollar index trades at 99.70 after hitting a daily low of 99.63. 

The reason behind the risk-on market sentiment could also be the upbeat comments from the BOJ Governor. The Bank of Japan (BOJ) Governor Haruhiko Kuroda said that Japan’s financial system remains firm because a whole as bank groups have satisfactory capital buffers. Lastly, weakness in the U.S. dollar is also weighing on the USD/JPY. As expected, the Federal Reserve kept its benchmark interest rates unchanged at 0.00%-0.25%. The central bank acknowledged that the coronavirus pandemic is posting a considerable risk to the medium-term outlook for the economy.

Daily Support and Resistance    

  • R3 108.1
  • R2 107.72
  • R1 107.3

Pivot Point 106.93

  • S1 106.51
  • S2 106.14
  • S3 105.72

USD/JPY – Trading Tips

The USD/JPY pair has traded mostly in line with the forecast to drop from 106.980 level to 106.350 level. At the moment, the USD/JPY pair is trading at 106.650, gaining immediate support around 106.350, and violation of this level can extend selling bias until 105.850. On the 4 hour chart, we can see the USD/JPY pair is holding below descending triangle pattern, which may keep the pair in a bearish mode under 106.980 resistance. At the same time, the 50 EMA and MACD are also suggesting selling bias for the USD/JPY pair. Taking a selling trade below, 106.850 seems to be a good idea today.

All the best for today! 

Categories
Forex Market Analysis

Gold’s Triple Top Resistance Weighs – 23.8% Fibonacci Retracement Holds! 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

As per the latest report from the Centers for Disease Control and Prevention (CDC), the number of COVID19 virus cases rose to 52,459 against the previous day’s 50,439, while the cases surged to 928,619 against 895,766. Despite this, the demand for safe-haven gold is getting hit as investors seem to do profit takings ahead of exhibiting a further bullish bias.

The positive mood around the equity market failed to impressed buyers, which normally weakens the Japanese yen’s safe-haven demand. The reason behind the risk-on market sentiment could be the hopes for the re-start the economy. The certainty about the drug trials for the treatments of the deadly disease keeps the market calm.

Gold – XAU/USD – Daily Technical Levels

Support Resistance 

1,732.65   1,748.95

1,722.9     1,755.5

1,716.35   1,765.25

Pivot Point 1739.2

On the 4 hour timeframe, the precious metal gold has formed a bearish engulfing candle, which is suggesting odds of selling trend in the market below the 1,718 area. Since the overall trend seems bullish, we will try to capture quick sell in gold as soon as gold closes below 1,718, which is 23.8%, and violation of 1,718 level can open further selling until 1,708, which marks 38.2% retracement. Let’s look for selling positions below 1,728 and buying above 1712. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, April 27 – Top Trade Setups In Forex – COVID19 Continues to Play! 

On the forex front, the U.S. dollar eased against other major currencies, with the Dollar Index slipping 0.2% on the day to 100.29. In the U.S., the Federal Reserve Bank of Dallas will release its Manufacturing Activity Index for April (-75.0 expected).

On the forex front, the U.S. dollar eased against other major currencies, with the Dollar Index slipping 0.2% on the day to 100.29. In the U.S., the Federal Reserve Bank of Dallas will release its Manufacturing Activity Index for April (-75.0 expected).

On the forex front, the U.S. dollar eased against other major currencies, with the Dollar Index slipping 0.2% on the day to 100.29. In the U.S., the Federal Reserve Bank of Dallas will release its Manufacturing Activity Index for April (-75.0 expected).

Economic Events to Watch Today     

 

 

EUR/USD – Daily Analysis

The EUR/USD currency pair continues to taking bids and rose above 1.0840 regions, mainly due to the positive German virus stats report. The broad-based U.S. dollar draw offers and reporting losses on the day in the wake of risk-on market sentiment, which eventually supports the currency pair. 

The bullish trend in the currency pair could be short-lived because the European leaders failed to agree on a comprehensive coronavirus stimulus package last week. The EUR/USD pair is currently trading at 1.0841 and consolidates in the range between the 1.0812 – 1.0843.

On the other hand, the German Chancellor Merkel showed some willingness to offer almost EUR 1 trillion as financial support for a coronavirus recovery package. The leaders failed to reach an agreement on the size of the fund, and it should share the burden of financing with those countries that run fiscal and trade surpluses.

As per the German disease and epidemic control center, Robert Koch Institute (RKI) showed the number of confirmed coronavirus cases increased to 155,193, with a total of 5,750 deaths registered so far. Moreover, the institute surveyed that a total of 114,500 people has recovered from the virus. 

Daily Support and Resistance

  • R3 1.0847
  • R2 1.0836
  • R1 1.0829

Pivot Point 1.0819

  • S1 1.0812
  • S2 1.0802
  • S3 1.0795

EUR/USD– Trading Tips

The EUR/USD pair continues trading in a buying mode around 1.0858, despite weaker manufacturing and services PMI figures from the Eurozone. The overall trading bias continues to be bearish as the EUR/USD prices are holding below 50 EMA, which is extending resistance around 1.08500 level. On the 4-hour chart, the EUR/USD is likely to find resistance below the symmetric triangle pattern, which may drive the selling bias in the pair. Currently, it’s holding the pair over 1.08580, which is the triple yop level. Above this, a slight bullish recovery can be seen until 1.0889 level. While bearish breakout of 1.0765 level can drive selling until 1.0649 level today, let’s look for selling trades below 1.0770 level today.  

GBP/USD – Daily Analysis

The GBP/USD currency pair succeeded in extending its 4th consecutive day winning streak and rose above mid-1.2400 while representing 0.60% gains on the day mainly due to the broad-based U.S. dollar weakness in the wake of better mood in the market. Apart from this, the on-going criticism about the U.K.’s handling of the coronavirus (COVID-19) crisis and Tory government’s stand on Brexit keeps the currency pair’s gain limited for the time being. A

The GBP/USD pair is currently training at 1.2452 and consolidates in the range between the 1.2360 – 1.2455. However, the UK PM Boris Johnson came back from the pandemic infection, which satisfied the buyers. The Uk PM Boris Johnson will likely take its seat back from the acting chief Dominic Raab after getting permission from the doctors at the Chequers. Although, Boris Johnson said that he is looking forward to going to Downing Street on Monday.

The U.k. PM Boris Johnson was absent since early April due to the coronavirus decease. Whereas, the UK Tory government getting an inadequate response from the entire nation about the handling of the coronavirus (COVID-19) crisis despite the hard efforts from the Chancellor Rishi Sunak and Health Secretary Matt Hancock, and the Deputy PM Dominic Raab.

Although, the shortage of medical supplies and the surge in the death toll have forced the United Nations (U.N.) poverty expert Philip Alston to attack the U.K.’s coronavirus response as “utterly hypocritical.

Moreover, the Health Secretary’s optimistic target of 100,000 tests a day got a surprise on Saturday after the government needed to avail the military helps to overcome the 29,000 marks.

Daily Support and Resistance

  • R3 1.2379
  • R2 1.2375
  • R1 1.2371

  Pivot Point 1.2367

  • S1 1.2363
  • S2 1.2359
  • S3 1.2356

GBP/USD– Trading Tip

The GBP/USD showed a slight bullish reversal to place a high around 1.2434, although the bullish trend wasn’t long enough as prices recorded soon. At the moment, the Cable is trading at 1.2437 area, after violating the resistance level of 1.2420 level and now this level is working as a support. A bullish breakout of 1.2368 level can extend the buying trend until 1.2420 level today. Elsewhere, the support continues to hold around 1.2258 level. The 50 EMA and MACD are both are suggesting selling bias in the Cable. So let’s look for selling trades below 1.2399 and bullish above 1.2420 level today. 

USD/JPY – Daily Analysis

The USD/JPY is consolidating in a tight trading range of 107.675 level to 106.950 level, mainly due to the risk-on market sentiment keeps the safe-haven Japanse lower and providing support to the currency pair. The U.S. announced 4.427 million initial jobless claims for the preceding week overnight, with an unparalleled 26 million people dropping their jobs since late March.

At the USD front, the U.S. dollar took bids due to mixed risk sentiment, which is starting to dominate the markets and caused the bearish pressure to remain intact. The U.S. Dollar Index, which dropped below the 100 marks earlier in the day, is up 0.12% on the day at 100.47 and stays on track to close the 4th-straight day in the positive area.

The latest pullback of the U.S. dollar kept a lid on bullish moves in the pair. Currently, the USD/JPY is trading at 107.27 and consolidates in the range between the 106.98 – 107.86. However, investors are cautious and waiting for a fresh catalyst before placing any position.

Whereas, the multiple diverging factors failed to provide any meaningful direction or assist the pair in breaking through a narrow trading band held since the beginning of this week. The reason behind the risk-on market sentiment is the report regarding the passage of another $484 billion U.S. economic support package by the U.S. Senate. 

While the latest modest recovery in crude oil prices also keeps the market sentiment calm. Looking ahead, the eyes will remain on the Core Durable Goods Orders m/mas that’s due during the U.S. session in order to forecast further trends in the USD related pairs. 

Daily Support and Resistance    

  • R3 107.84
  • R2 107.73
  • R1 107.62

Pivot Point 107.51

  • S1 107.4
  • S2 107.29
  • S3 107.17

USD/JPY – Trading Tips

The USD/JPY is mostly trading bearish within a narrow trading range of 107.720 – 107 zones. At the moment, the USD/JPY is holding at 107.197, and the triangle pattern that is formed during the previous week still lasts.  

The triangle pattern is prolonging resistance around 107.550, along with support around 106.980. If USD/JPY manages to violate the descending triangle pattern, we may see pair dropping towards 106.200. While on the upper side, a bullish breakout of 108 can lead USD/JPY prices towards 109.100. The leading indicator, such as MACD and 50 EMA, are supporting bearish bias in the market today. 

All the best for today! 

Categories
Forex Market Analysis

Risk-off Sentiment Triggers Buying in Gold – Channel Breakout

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

The gold is currently trading at 1,710, and it has violated the previously traded consolidation range between the 1,696.20 – 1,713.50. One of the major reasons behind such a dramatic bullish trend is lashing red for a second day due to oil futures dropping in the previous session. The yellow metal is witnessing its prices restore its inverse relationship with stocks because investors prefer safe-haven assets in the wake of coronavirus fears.

At the oil front, crude oil, which started this year near $61, dropped into the negative territory earlier this week due to the oversupply concerns in the wake of coronavirus pandemic, which has caused demand destruction of oil. The risk sentiment is getting worse day by day while the US 10-year Treasury yields declined by 2-basis points (bps) to 0.55%, after dropping 4-bps on Tuesday, while the most stocks in Asia-Pacific flashing losses by the pres time.


Gold – XAU/USD – Daily Technical Levels

Support Resistance 

1,672.4     1,703.07

1,660.04   1,721.39

1,629.37   1,752.07

Pivot Point 1,690.72

Technically, gold is showing sharp bullish movement as its prices are going towards 1,726, while the support stays around 1,700 and 1,710 level. Gold is also forming three white soldiers pattern on the 4-hour chart, which is suggesting chances of a bullish trend continuation in the market. The 50 EMA is suggesting bullish trend continuation, so we should probably look for buying trades above 1,710 level to target 1,726 level. Good luck.  

Categories
Forex Market Analysis

Gold Breakout Upward Channel – Can 50 EMA Support?

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

Finally, there is something positive from COVID 19 viewpoint, and it helped reduce the chaos in the market, driving risk-on sentiment. As in result, the market’s risk-tone remains upbeat and supports the U.S. 10-year treasury yields to improve further and to erase the previous day’s losses, currently near 0.67%.

Whereas, the U.S. dollar continues to lose its buying momentum across the board, as the U.S. stocks futures and the Asian equities are reporting green mainly after the renewed hopes for coronavirus treatment. Thus, this extends bearish pressure for precious metal gold. 

On the other hand, the economic event from China, the world’s second-largest economy, had shown a decline in GDP. Chinese economy contracted 6.8% in the quarter year-on-year, slightly more than expected, and 9.8% from the previous quarter, driving selling bias for the gold.


Technically, gold has violated the upward channel, and now it’s trading above 1,685 area. At the same price, the 50 periods EMA is proving it support, and gold has also closed a Doji candle followed by a hammer pattern, which can be seen on the 4-hour chart above. This setup demonstrates that investors are respecting 1,685 support areas, and gold prices may bounce off above this level until the resistance level of 1,700 and 1,709. In contrast, a bearish breakout of 1,685 level can cause further sell-off until 1,668. Good luck! 

Categories
Forex Market Analysis

EUR/CHF Descending Triangle Breakout – Time to Short the Pair!  

The EUR/CHF pair hasn’t changed much as the previously formed descending triangle pattern is still supporting the pair around 1.0520 along with resistance around 1.05675. The 50 EMA and the descending trendline is weighing on the Euro cross pair, and it may drive additional bias in the EUR/CHF today. 

The EUR/CHF pair hasn’t changed much as the previously formed descending triangle pattern is still supporting the pair around 1.0520 along with resistance around 1.05675. The 50 EMA and the descending trendline is weighing on the Euro cross pair, and it may drive additional bias in the EUR/CHF today. 

The EUR/CHF pair hasn’t changed much as the previously formed descending triangle pattern is still supporting the pair around 1.0520 along with resistance around 1.05675. The 50 EMA and the descending trendline is weighing on the Euro cross pair, and it may drive additional bias in the EUR/CHF today. 

Spain and Italy have already released the report of inflation numbers for the month of March. In March 2020, the Consumer Price Index (CPI) grew by 0.1% over a month, following stability in the prior month. Manufactured goods prices stimulated (+1.4% after +0.2%), in the wake of winter sales in February. Tobacco prices rose by 6.6%, because of a tax hike. Despite this, the single currency Euro is getting weaker in the wake of COVID 19 increase number of cases around the globe. 


EUR/CHF- Daily Technical Levels

Support  Resistance 

1.0533      1.056

1.052        1.0573

1.0493      1.06

Pivot Point 1.0547

The EUR/CHF has created a descending triangle pattern that was underpinning the pair at 1.0520 along with resistance at 1.05675. As we can see, the EUR/CHF pair is already trying to breach the descending triangle. Usually, descending triangle patterns tend to break down thus, it may open further selling bias until the next target 1.0470. 

On the 4 hour chart, the 50 periods EMA and the descending trendline are pressing the EUR/CHF currency pair lower, and it may drive further selling bias in the EUR/CHF. 

Good luck! 

Categories
Forex Market Analysis

EUR/CHF Triangle Breakout – Time to Short the Pair!  

The EUR/CHF is facing stiff resistance around 1.05440, which is mostly extended by a descending triangle pattern that has already been violated. This may drive the EUR/CHF pair further lower until the next support area of 1.0502. The Euro as a signal currency is still staying bearish in the wake of an increased number of COVID 19 cases around the globe.  

The EUR/CHF is facing stiff resistance around 1.05440, which is mostly extended by a descending triangle pattern that has already been violated. This may drive the EUR/CHF pair further lower until the next support area of 1.0502. The Euro as a signal currency is still staying bearish in the wake of an increased number of COVID 19 cases around the globe.  

The EUR/CHF is facing stiff resistance around 1.05440, which is mostly extended by a descending triangle pattern that has already been violated. This may drive the EUR/CHF pair further lower until the next support area of 1.0502. The Euro as a signal currency is still staying bearish in the wake of an increased number of COVID 19 cases around the globe.  

Most of the selling in the EUR/CHF pair triggered after the Eurozone money market rates crawled lower from four-year speak. It’s a hint the Euribor benchmark may be beginning to counter to European Central Bank measures aimed at reducing the funding rush beyond the single currency bloc. Declines in the oil prices could be recovered during the day ahead, mainly due to the risk recovery in the market, as the coronavirus cases are showing some sign of a slowdown in global economies. 


The EUR/CHF pair has formed a descending triangle pattern which was supporting the pair around 1.0540 along with resistance around 1.05675. As we can see, the pair has already breached the descending triangle pattern, which now opens further room for selling until the next target level of 1.0540.  

The 50 EMA and the descending trendline is weighting on the cross pair, and it may drive selling bias in the EUR/CHF today. The violation of 1.0540 level can extend the selling trend until the next target level of 1.0520 and 1.0509. Good luck! 

Categories
Forex Signals

Bullish Bias in Gold Continues to Dominate – Who’s up for a bullish Signal?

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

The U.S. President Donald Trump is showing a willingness to support the USA fight against the coronavirus (COVID-19), which eventually seems to help the risk-tone. This time, the Fed will elevate about $2.3 trillion to promote small and medium-sized companies, districts and workers harmed by the coronavirus break.

Apart from this, the recent recovery in the Asian equity and continued rise in the U.S. 10-year Treasury yields, which is currently near 0.773%, provided support to the oil prices recover. The better-than-expected Chinese trade data also give confidence to the oil buyers.


Technically, the XAU/USD has the potential to go long, which is why we have opened a buying signal at 1728.27 with a stop loss of around 1718.27 and take a profit of 1738.27. The bullish channel likely keeps the gold prices higher, while the RSI and MACD are suggesting a continuation of a bullish bias in the gold. On the higher side, gold has the potential to go after 1,743 level today.

Buying Price: 1728.27
Take Profit 1738.27
Stop Loss 1718.27
Risk/Reward 1
Profit & Loss Per Standard Lot = -$1000/ +$1000
Profit & Loss Per Micro Lot = -$100/ +$100

Categories
Forex Signals

USDCAD to retest 1.4500 level

 

USDCAD 1 Hour Chart

The pair has been consolidating between 1.40 and 1.41 and has breached the upper resistance level. With oil prices further in the red today and with recent price action in USDCAD failing to reach the key 1.40 handle traders will be looking for a retest of the highs around 1.45 and maybe beyond.

This is a typical consolidation pattern that traders look for with at least two attempts for price to break out of the consolidation range.

Coupled with President Trump deciding not to put New York into lockdown which has given the US Dollar a small lift in the current session and adds to our theory that this set up should prevail and price action in the pair should continue to trend higher.

Key levels are:

 

  • Entry: 1.4140 Long position taken,
  • Stop Loss: 1.3995
  • Target: 1.4525

Risk:

Categories
Forex Market Analysis

Daily F.X. Analysis, March 27 – Top Trade Setups In Forex – Weaker Dollar In Play! 

The greenback fell against its major peers, with the Dollar Index dipping 0.7% on the day to 100.94, down for a 4th consecutive session. France’s INSEE will release March Consumer Confidence Index (91 expected).

The greenback fell against its major peers, with the Dollar Index dipping 0.7% on the day to 100.94, down for a 4th consecutive session. France’s INSEE will release March Consumer Confidence Index (91 expected).

The greenback fell against its major peers, with the Dollar Index dipping 0.7% on the day to 100.94, down for a 4th consecutive session. France’s INSEE will release March Consumer Confidence Index (91 expected).

The U.S. Commerce Department will report February personal spending (+0.2% on month expected) and personal income (+0.4% on month expected). The University of Michigan (UOM) will report its final rea1dings of the March Consumer Sentiment Index (90.0 expected).

 Economic Events to Watch Today    

 

 

EUR/USD – Daily Analysis

The EUR/USD rallied 1.5% to 1.1047, posting a four-day winning streak. The risk-on market sentiment is also pushing the U.S. Dollar lower and sending the pair higher. The recovery in the risk-sentiment came after the U.S. Senate approved of the original $2 trillion fiscal stimulus package.

A series of economic fundamentals drove the pair, and even today market is likely to move on news. In particular, the U.S. initial jobless claims are expected to have risen to 1,000K from the preceding week’s 281K figure in the week ended March 20. 

If jobless claims fall in the 2 to 3 million range, which seems fairly possible, we will likely see a notable sell-off in the greenback. In that case, the EUR/USD currency pair could find a bid over the 50-day moving average at 1.10. 

On the other hand, the EUR/USD currency pair will also take cues from the Kansas Fed Manufacturing Activity index for March. The European Union’s upcoming emergency meeting to discuss further steps to combat the virus will be essential to watch. 

Markets are assuming that the Eurozone is going for a deep slowdown, and they need aggressive stimulus to stop the fallout from the virus outbreak. Later today, eyes will be on France’s INSEE, which is due to release March Consumer Confidence Index (91 expected).

Daily Support and Resistance

  • S1 1.0673
  • S2 1.0835
  • S3 1.0935

Pivot Point 1.0997

  • R1 1.1097
  • R2 1.1159
  • R3 1.1321

EUR/USD– Trading Tips

The EUR/USD is trading bullish at 1.1025, having an immediate support level of around 1.0947. The bullish channel has already been violated on the higher side, and it’s supporting is the bullish bias in the EUR/USD pair. On the higher side, the EUR/USD pair is facing resistance at 1.1070 area. 

Bullish crossover of 1.1070 area can open further room for buying until 1.1194 level. Whereas, the chances of a bearish bias will remain strong if the pair continues to hold below 1.1070 level today. On the lower side, the target is likely to stay at 1.0947 and 1.0885. 

GBP/USD– Daily Analysis

The GBP/USD surged 2.6% to 1.2192. The Bank of England said, after announcing a rate cut and additional bonds purchase last Thursday, it can expand asset purchases further if necessary. On the other hand, official data showed that U.K. retail sales declined 0.3% on month in February (+0.2% expected).

The policymakers could be called with the 24-hour prior notice to vote on the coronavirus support package on Friday. On the U.S. front, the coronavirus fears in the U.S. also increased with the death losses crossed 1,000 figures and an increase of 12,000 cases recorded in the single day on Wednesday.

The Bank of England (BOE) failed to offer any fireworks due to a lack of resources while disappointing U.K. Retail Sales, to 0.0% from 0.8% YoY forecast, also couldn’t recall the bears.

Later today, the U.S. Commerce Department will report February personal spending (+0.2% on month expected) and personal income (+0.4% expectation). The University of Michigan will report Consumer Sentiment Index (90.0 expected).


Daily Support and Resistance

  • S1 1.1339
  • S2 1.1535
  • S3 1.1662

Pivot Point 1.1731

  • R1 1.1858
  • R2 1.1927
  • R3 1.2122

GBP/USD– Trading Tip

The GBP/USD has violated the double top resistance level of 1.1945, and the pair now trades around 1.2180, the level which is marked as horizontal resistance. Today, the bullish breakout of the 1.2300 level can open the buying trend until the next resistance level of 1.2338 (50% Fibo level) and 1.2510 level, which accounts for a 61% retracement. On the lower side, the Cable can find support around 1.2035 and 1.1930. Let’s look for buying trades over the 1.1945 support level and selling below 1.2350 today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair flashing red and hit the session low near the 108.50, mainly due to broad-based U.S. Dollar weakness. While the greenback continues to lose its ground in the wake of the U.S. relief package. At the time of writing, the USD/JPY is trading at 108.78 and consolidates in the range between the 108.25 – 109.72. 

However, the currency pair faced rejection at 109.72 in early Asia and dropped below the 100-day average support at 109.00 a few minutes before press time to hit a session low of 108.55.

Whereas, the major Asian equity indices like Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi are flashing green.

It is worth to mention that the traders did not give much more attention to the Japanese Yen demand. So, the reason behind the pairs declines is the broad-based greenback weakness. The dollar index, which tracks the value of the greenback against majors, is currently trading at weekly lows near 99.30, having declined by nearly 200 pips on Thursday.

The U.S. dollar continues to lose its ground due to the unprecedented fiscal and monetary stimulus by the U.S. government and the Federal Reserve in the last five days.


Daily Support and Resistance

  1. S1 106.51
  2. S2 108.16
  3. S3 108.75
  4. Pivot Point 109.8
  5. R1 110.4
  6. R2 111.45
  7. R3 113.09

USD/JPY – Trading Tips

On Friday, the demand for safe-haven assets such as gold and Japanese yen has surged in the wake of an increased number of coronavirus cases around the globe. Consequently, the USD/JPY pair has dropped to trade at 108.350, down from the 109 level. On the 4 hour chart, the USD/JPY has violated the bullish channel, which is now suggesting bearish bias in the USD/JPY. 

The USD/JPY prices are holding around the next support level of 108.350, and around this level, we can expect USD/JPY to bounce off until 109.850. But in case, the USD/JPY exhibits a bearish breakout below 108.350 level; the pair may drop further until 106.450. 

All the best for today!  

Categories
Forex Signals

GBP/JPY to Gain Support Over Upward Trendline – Buying Limit!

The Japanese cross currency pair GBP/JPY has dropped to trade at 130.300 as investors are moving towards safe-haven assets such as gold and Japanese yen. At the same time, traders seem to cash out from Sterling, causing it to tumble to its lowest level on record versus the currencies of the United Kingdom’s major trading partners.

The Japanese cross currency pair GBP/JPY has dropped to trade at 130.300 as investors are moving towards safe-haven assets such as gold and Japanese yen. At the same time, traders seem to cash out from Sterling, causing it to tumble to its lowest level on record versus the currencies of the United Kingdom’s major trading partners.

The Japanese cross currency pair GBP/JPY has dropped to trade at 130.300 as investors are moving towards safe-haven assets such as gold and Japanese yen. At the same time, traders seem to cash out from Sterling, causing it to tumble to its lowest level on record versus the currencies of the United Kingdom’s major trading partners.

It seems like the effects of the coronavirus pandemic proceed to shred through markets. Besides this, the British Consumer Prices Index, which is also known as inflation, surged to 1.7% in the month of February 2020. Comparing it to the previous month, the CPI figure is down by 0.1% from 1.8% in January 2020, and it has also been weighing on the GBP/JPY.



Technically speaking, the GBP/JPY is likely to test the support level of 129.650, which is extended by a bullish trendline. At the same level, the 50 periods exponential moving average is also supporting the Japanese cross.

While the resistance becomes a support level holds around 129.120. So to be more secure, we are looking to place a buy limit at 130.330 with a stop loss below 129.750 and take a profit of around 131.850.

Buy Limit 130.335

Take Profit 131.875

Stop Loss 129.735

Risk/Reward 2.57

Profit & Loss Per Standard Lot = -$530/ +$1,380

Profit & Loss Per Micro Lot = -$53/ +$138

Categories
Forex Signals

USDCAD SHORT

This is a classic head and shoulders pattern where the neckline has been breached and we expect price to fall to our target line which is a previous line of support.

This is a classic head and shoulders pattern where the neckline has been breached and we expect price to fall to our target line which is a previous line of support.

This is a classic head and shoulders pattern where the neckline has been breached, and we expect the price to fall to our target line, which is a previous line of support.

Risk:

Standard Lot = £800

Mini Lot: $80

Micro Lot: $8

1 Hour Chart is used In This Trade.

The head and shoulders formation is a classic technical analysis pattern that professional Traders use in order to determine future price action.

In our setup, we have multi-year highs for this pair,  followed by a decline in price action to an area of support around the 1.4150  the key level, which will become our profit target.

Since pulled back from the original multi-year high around the one 1.4700 level, the price has consolidated into our head and shoulders formation, which consists of a left-hand peak and a pullback followed by a higher peak and a pullback and the third peak which again is lower than the second and similar to the first, where price action on each occasion pulls back to an area of support which is called a neckline.

When the neckline is breached, it confirms the setup, and that is where we have gone short. This offers a strong signal to traders that price action will continue down, at least to the previous area of support. And this is the hypothesis for our trade setup, where we have set in place a tight stop loss, just above the neckline, and where we have a generous win to lose ratio.

Categories
Forex Signals

USDCAD – Watch this Key Support

Description

Description

Description

The USDCAD pair in its hourly chart shows the test of the 1.4375 level as short-term support, the three-times touch realized on the current trading week makes us suspect that the Loonie could see more drops soon.

For the short-term, we expect a limited bounce to 1.4426 from where the price could find fresh sellers waiting to activate their short positions with a potential profit target at 1,4156.

On the other hand, the RSI oscillator that moves below level 40 gives us the clue of the bearish bias, which supports our sell-side outlook.

The invalidation level of our bearish scenario locates at 1.4559.

Chart

Trading Plan Summary

Categories
Forex Signals

Profit from our Brand-New Signals Section!

Dear members,

Dear members,

Dear members,

It is a great pleasure to present our new Signal Table section. In this section, a team of successful traders will be continuously observing the financial markets to put at your disposal trading signals of the highest quality.
Each signal will be waved to everyone subscribing to our notifications. In addition, each signal will show a link to a short article with the explanatory arguments, the levels of input, stop-loss. Take profit, and the risk per lot, mini-lot and micro-lot will also be included. We initially expect to deliver about 5-6 trading ideas per day for you to choose from.
The table will be refreshed almost live, so it will show the pips gained or lost on every trade, and also to total pip balance.
This is a great effort to bringing you the best possible trade ideas totally free of charge!
Access our free Signal Table section, and click the bell located at the bottom right of the table for notifications to your device.

Risk Management

Please note that the financial markets are risky, so be smart and start slow. Trade only the money you can afford to lose.
As we said, on each trade idea, we are going to show the risk levels per micro-, mini-lot, and lot. That is for you to help you with the management of your position size.
It is advisable not to trade in excess of 2 percent of your current balance. Let’s review with an example.
There, we see the following information:
EUR/USD Trading Signal

Entry Price:  1.07839
Stop Loss: 1.07439
Take Profit 1.08239

R/R Ratio 1:1

Risk of 1  Standard Lot: $400
Risk of 1 Mini Lot: $40
Risk of 1 Micro Lot: $4

Let’s assume a trader has a current trading balance of $1000. how much to trade to fulfill the 2 percent rule?

Two percent of $1000 is $20. Since the risk per Micro Lot is $4, the trader should trade no more than five micro-lots.

Drawdown

The max expected drawdown when risking 2 percent of your account on each trade can be up to 20 percent of your trading balance. If you think this is too much for you, please consider cutting your trade size in half for a max drawdown below ten percent.
We wish you all very successful trading!
Access our free Signal Table section, and click the bell located at the bottom right of the table for notifications to your device.
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Forex Market Analysis Forex Signals

AUDJPY Bounces from the Lowest Level Since 2009

The AUDJPY cross, in its hourly chart, shows the bounce reaction that the price made once the cross touched level 59.869 being the lowest level since early March 2009.

The AUDJPY cross, in its hourly chart, shows the bounce reaction that the price made once the cross touched level 59.869 being the lowest level since early March 2009.

The AUDJPY cross, in its hourly chart, shows the bounce reaction that the price made once the cross touched level 59.869 being the lowest level since early March 2009.

The bearish momentum accelerated aided by the plummetting of the global stock markets, worried by the COVID-19 impact, which pulled down the Australian Dollar and pushed up to the Japanese Yen.

The measure that was taken by the RBA at its last monetary policy meeting, in which it reduced the interest rate to 0.5%, prompted the Australian currency to rise and bounce off from the lows reached.

The pierce of the psychological support at level 60, drove the pair to jump more than 400 pips. At the same time, the RSI oscillator began to move above level 60, which makes us suspect that traders’ market sentiment is changing its bearish bias to bullish.

A bullish position will activate if AUDJPY rises and closes above 65.378. If this movement occurs, the cross could advance until level 70. Our protective stop locates at 62.44.

Finally, if the price action doesn’t confirm the bullish breakout, the bearish bias will continue driving the market sentiment.

Chart

Trading Plan Summary

  • Entry Level: 65.378
  • Protective Stop: 62.447
  • Profit Target: 70.007
Categories
Forex Market Analysis

WTI Crude Oil Slips Beneath $29 as Coronavirus Outbreaks Further! 

Crude oil prices fell sharply to trade below $29 after showing a slight bullish recovery during the previous week. Crude oil prices benefited from President Trump’s saying that his government is to buy large quantities of crude oil for the Strategic Petroleum Reserve to take advantage of lower oil prices. Nymex crude oil futures rose 2.8% to $31.87 a barrel, and Brent rebounded 4.3% to $34.07.

Crude oil prices fell sharply to trade below $29 after showing a slight bullish recovery during the previous week. Crude oil prices benefited from President Trump’s saying that his government is to buy large quantities of crude oil for the Strategic Petroleum Reserve to take advantage of lower oil prices. Nymex crude oil futures rose 2.8% to $31.87 a barrel, and Brent rebounded 4.3% to $34.07.

Crude oil prices fell sharply to trade below $29 after showing a slight bullish recovery during the previous week. Crude oil prices benefited from President Trump’s saying that his government is to buy large quantities of crude oil for the Strategic Petroleum Reserve to take advantage of lower oil prices. Nymex crude oil futures rose 2.8% to $31.87 a barrel, and Brent rebounded 4.3% to $34.07.

Over the weekend, the global coronavirus pandemic worsened, particularly in Europe. Italy saw the number of coronavirus cases surge past 24,700 (1809 deaths), while Spain reported over 7,800 cases in total, Germany over 5,800 cases and France over 5,400 cases. In the U.S., the number of cases jumped to nearly 3,600 (68 deaths).

The RBA indicated that it would purchase bonds while holding a special meeting on Thursday. Whereas, RBNZ finally also joined the role of major central bankers that offered major rate cuts in order to control the coronavirus (COVID-19). 

China’s National Bureau of Statistics (NBS) said that China’s economy continues to stabilize despite the impact of coronavirus. The comments came after January-February month Retail Sales and Industrial Production disappointed markets. As in result, the risk-tone remains under pressure with the U.S. ten-year treasury yields decreased around 0.673% while stocks in Asia register mild losses due to pandemic fears.

Moving forward, traders will keep their eyes on central banker’s moves and announcements/surprises for near-term trade direction. On the other hand, coronavirus headlines will also be essential to watch.

Daily Support and Resistance

  • S1 26.84
  • S2 29.16
  • S3 30.25

Pivot Point 31.49

  • R1 32.57
  • R2 33.81
  • R3 36.13

On the technical front, crude oil has formed a bearish engulfing candle, which is strengthening the bearish bias among traders. On the lower side, the WTI prices may head further lower towards the support level of 27.33 level. Below this, the next support can be found around 23.95 level. Fundamentals are in favor of a selling trend, and but oil should break below 27.50 level before exhibiting further selling today. Let’s consider staying bearish below $31. Good luck!  

Categories
Forex Market Analysis

WTI Crude Oil Recovered Slightly From Yesterday’s Historical Fall – Trade Plan! 

The WTI crude oil prices recovered on the day, representing an 8% gain after yesterday’s historical drop, having hit a multi-year low of $27.40 on Monday. The U.S. Crude Oil WTI Futures gained 6.2% to $33.05. 

The WTI crude oil prices recovered on the day, representing an 8% gain after yesterday’s historical drop, having hit a multi-year low of $27.40 on Monday. The U.S. Crude Oil WTI Futures gained 6.2% to $33.05. 

The WTI crude oil prices recovered on the day, representing an 8% gain after yesterday’s historical drop, having hit a multi-year low of $27.40 on Monday. The U.S. Crude Oil WTI Futures gained 6.2% to $33.05. 

The WTI Crude Oil prices marked a historical 30% fall yesterday because tensions between Saudi Arabia and Russia escalated, whereas intensifying fears about the spread of the new coronavirus continued to affect investor sentiment.

After a failure in talks between OPEC and its allies last week, Saudi Arabia cut its April official selling prices by $6 to $8 to grab market share. It also plans to increase its crude output above 10 million barrels per day in April from 9.7 million BPD in recent months.

On the other hand, Russia also said that it might raise output and said that it could manage with low oil prices for six to ten years. It is worth to mention that possibly 50% of the public exploration and production companies will become bankrupt during the next two years as per the report that came from the Pioneer Natural Resources Co. Chief Executive Scott Sheffield. 

The risk-sentiment was also recovered after Chinese President Xi Jinping visited Wuhan, the epicenter of the coronavirus outbreak, for the first time since the disease started, and because of the spread of the virus in mainland China sharply decreases.

At the demand side, the International Energy Agency said oil demand was set to contract in 2020 for the first time since 2009.

Daily Support and Resistance

  • S1 16.27
  • S2 23.67
  • S3 27.07

Pivot Point 31.07

  • R1 34.47
  • R2 38.47
  • R3 45.87

Technically, crude oil is trading at $34 per barrel, mostly maintaining sideways trading range of 34.40 – 27.33. At the moment, 34.35 resistance is very, very crucial for crude oil as the MACD is extremely oversold, and traders need a reason to long on crude oil. Breakout of 34.35/40 can be that reason which may attract some buying in crude oil and may lead its prices towards 38. Let’s look to stay bearish below 34 and bullish above 34.40 area today. Good luck! 

Categories
Forex Market Analysis

Gold Soars Aimed Fed Rate Cut Decision – Quick Trade Plan! 

On Wednesday, the gold prices trade sideways after trading mostly on the higher side on Tuesday. The bullish trend was seen on expectations of interest rate reductions by central banks as influencing policymakers from the Group of Seven (G7) countries gathered to address how to embrace the economic shock from the global coronavirus break.

On Wednesday, the gold prices trade sideways after trading mostly on the higher side on Tuesday. The bullish trend was seen on expectations of interest rate reductions by central banks as influencing policymakers from the Group of Seven (G7) countries gathered to address how to embrace the economic shock from the global coronavirus break.

On Wednesday, the gold prices trade sideways after trading mostly on the higher side on Tuesday. The bullish trend was seen on expectations of interest rate reductions by central banks as influencing policymakers from the Group of Seven (G7) countries gathered to address how to embrace the economic shock from the global coronavirus break.

The Fed made an emergency interest-rate cut, the first one since the global financial crisis of 2008. The cut was of half a percentage point (to a range of 1.00%-1.25%) in response to mounting anxieties about the economic influence of the coronavirus. Fed Chair Jerome Powell pointed out: “The virus and the measures that are being taken to contain it will inevitably weigh on economic activity for some time, both here and abroad, however, we do consider that our work will contribute a meaningful addition to the economy.

Besides, the Reserve Bank of Australia lowered its benchmark interest rate by 25 basis points to a record low of 0.50%, saying that it is prepared to ease monetary policy further to support the economy amid the impact of the coronavirus.

The gold will probably trade higher further as traders seek to park their funds into safe-haven assets such as gold. It is mostly due to concerns over the global economic slowdown. 

The coronavirus is presently expanding faster outside China, and the US Fed’s emergency rate reduction disturbed financial markets; thus, the demand for safe assets like gold will grow.

    


Daily Support and Resistance

Support    Resistance 

1,606.47    1,662.39

1,572.03    1,683.87

1,516.11    1,739.79

Pivot Point 1,627.95

At the moment, gold is expected to gain a critical resistance near 1,651 level, and breach of this can stretch the bullish trend till 1,662. As we can see on the 4-hour chart above, the gold has formed a Doji candle followed by a strong bullish candle, which is suggesting that there are chances of a bearish retracement below 1,652 level. On the lower side, the immediate support stays around 1,632 and 1,613. Let’s consider staying bullish above 1627.95 and bearish below 1,652 today. Good luck! 

Categories
Forex Market Analysis

Gold Bearish Engulfing In-Play – Is It Gold time to Short Gold?

On Monday, the precious metal gold surged over 1.5%, improving from its most significant one-day drop in almost seven years, on the odds for Fed fund rate cut by the U.S. Federal Reserve to diminish the economic impact from the coronavirus break.

On Monday, the precious metal gold surged over 1.5%, improving from its most significant one-day drop in almost seven years, on the odds for Fed fund rate cut by the U.S. Federal Reserve to diminish the economic impact from the coronavirus break.

On Monday, the precious metal gold surged over 1.5%, improving from its most significant one-day drop in almost seven years, on the odds for Fed fund rate cut by the U.S. Federal Reserve to diminish the economic impact from the coronavirus break.

On Friday, the yellow metal slipped dramatically by more than 4.5% for its most significant daily decline since June 2013 as traders liquidated positions to meet margin calls in other securities.

Monday has been a painful start to the week for some investors with further drop-offs in a variety of markets occurring at the market open.

It marks the 6th day of declines in a row, which we have not seen in some time, so traders should prepare themselves for the possibility that this week will likely be filled with negative data, driven by coronavirus fears.

Last week, coronavirus fear resurfaced, and this helped to trigger a good number of trend line breakout trades, which I hear that some of you have been able to catch.

The virus came back into focus late last week, and this tipped the U.S. major stock indices into negative territory; note how much of Saturday’s CNBC front-page was dedicated to virus-related issues.

XAU/USD – Daily Technical Levels

 Support      Resistance 

1,552.02      1,631.45

1,517.83      1,676.69

1,438.4        1,756.12

Pivot Point 1,597.26

On the technical front, gold has closed a bearish engulfing candle around 1,593. Typically such patterns trigger further selling in the XAU/USD, and we may see gold prices going after the next immediate support level of 1,580. Violation of this level can extend further selling until 1,572. Alternatively, the resistance stays around 1,602. Let’s consider selling trade under 1,597 today. Good luck! 

Categories
Forex Market Analysis

Safe Haven Gold Completes 38.2% Retracement – Coronavirus Risk In Play! 

On Wednesday, the precious metal gold prices rose slightly following a sharp decline in the prior session, as a U.S. indication of an imminent pandemic urged traders to seek shelter in safe-haven assets.

On Wednesday, the precious metal gold prices rose slightly following a sharp decline in the prior session, as a U.S. indication of an imminent pandemic urged traders to seek shelter in safe-haven assets.

On Wednesday, the precious metal gold prices rose slightly following a sharp decline in the prior session, as a U.S. indication of an imminent pandemic urged traders to seek shelter in safe-haven assets.

Gold prices climbed 0.7% to $1,646.19, having decayed as much as 1.9% in the prior session. On Monday, prices reached their highest level in more than seven years at $1,688.66. Today, the yellow metal gold prices eased 0.1% to $1,648.30.

The United States announced it’s citizens to start planning for the virus to expand inside the country as outbreaks in Iran, South Korea, and Italy intensified. The consequences of the epidemic are expected to reflect beyond China as the most significant markets in the region are anticipated to either slow down significantly, stop or recoil entirely in the current quarter.

The speedy spread of the disease and its influence on global economic movements boosted chances for monetary policy easing by global central banks, with U.S. money market futures now entirely pricing in a 0.25% point cut by the end of June. Nevertheless, U.S. consumer confidence soared in February, implying a constant pace of consumer spending that could boost the economy despite rising fears over the fast-spreading disease.

XAU/USD – Daily Technical Levels

Support     Resistance 

1,643.69     1,682.16

1,628.07     1,705.01

1,589.6       1,743.48

Pivot Point 1666.54

Gold has already completed the 38.2 %Fibonacci retracement at 1,636 level. The MACD and RSI are holding in the selling zone, supporting bearish bias for the gold. Gold has an immediate resistance around 1,660, which may keep gold prices in a bearish mode until this level gets violated. A bearish breakout of 1,636 level can lead to gold prices towards the next support level of 1,619 and 1,609. Both of these levels mark the 50% and 61.8% Fibonacci retracement levels. Let’s consider selling below 1,630 to target 1,626 today. Good luck

 

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Forex Market Analysis

Daily F.X. Analysis, February 25 – Top Trade Setups In Forex – Coronovirus Dominates Market Sentiment! 

Later today, the Conference Board’s Consumer Confidence Index for February is expected to increase to 132.1. The number of confirmed coronavirus cases in South Korea has jumped to 833 with eight fatalities. Japan has recorded 850 cases (4 deaths), Italy announced there were 229 incidents (7 deaths). Singapore has also addressed 90 instances.

Later today, the Conference Board’s Consumer Confidence Index for February is expected to increase to 132.1. The number of confirmed coronavirus cases in South Korea has jumped to 833 with eight fatalities. Japan has recorded 850 cases (4 deaths), Italy announced there were 229 incidents (7 deaths). Singapore has also addressed 90 instances.

Later today, the Conference Board’s Consumer Confidence Index for February is expected to increase to 132.1. The number of confirmed coronavirus cases in South Korea has jumped to 833 with eight fatalities. Japan has recorded 850 cases (4 deaths), Italy announced there were 229 incidents (7 deaths). Singapore has also addressed 90 instances.

Save-haven assets, like U.S. government bonds and gold, kept receiving bids. The benchmark 10-year Treasury yield slid from 1.470% Friday to 1.377%, the lowest level since July 2016. And the 30-year yield shed 6.8 basis points to 1.849%.

Economic Events to Watch Today 

  

EUR/USD – Daily Analysis

On Tuesday, the EUR/USD remains lightly positive, +0.08%, while taking steps to 1.0860. The dollar slid on Tuesday following a recent bullish momentum amid heightened expectations that the expected hit to economic extension from the spread of the coronavirus will urge the U.S. Federal Reserve to decrease interest rates.

Expectations for the Federal Reserve interest rate cut have grown in the last few days to price in a 50-50 probability. Today is likely to be a quiet day ahead on the economic docket. Key economic figures will include Germany’s 2nd estimate GDP figures for the 4th quarter.

Lack of major deviation from 1st forecast is not likely to have too much of an influence on the EUR. Any drop in the U.S consumer confidence figure and risk sentiment could help capture a movement in the EUR/USD currency pair later during the U.S.s session today. 

Daily Support and Resistance

  • R3: 1.0977
  • R2: 1.091
  • R1: 1.0882

Pivot Point 1.0844

  • S1: 1.0815
  • S2: 1.0777
  • S3: 1.071

EUR/USD– Trading Tips

On Tuesday, the EUR/USD pair soars higher to trade around 1.0865, making a bullish engulfing pattern on the daily chart. This pattern suggests the odds of bullish trend continuation. The 50 periods EMA is also likely to extend support at 1.0815, and we may see a bounce off above this level. The same level also marks the 50% Fibonacci retracement, while 61.8% Fibo support prevails at 1.0815. On the higher side, resistance can be seen around 1.0845.

GBP/USD– Daily Analysis

The GBP/SD currency pair failed to continue its recent gains and dropped to 1.2940, representing 0.20% declines on the day mainly due to uncertainty and worries regarding the Brexit deal. The broad-based greenback strength also keeps the pair under pressure. At this moment, the GBP/USD currency pair is trading at 1.2978 and consolidates in the range between the 1.2934 – 1.3000.

The United Kingdom Prime Minister Boris Johnson will likely push for the U.S. trade deal by March 02, according to the Telegraph. The U.S. gave warning to the Tory government to avoid the greed checks on the good in the Irish Sea to secure the US-UK trade deal.

Besides, the on-going bearish pressure on the Cable is a reason for Greenback’s broad-based strength. The USD is getting gains due to the broad risk-off market sentiment in the wake of deadly coronavirus intensifying fears. As in result, the traders prefer the safe-haven assets like gold and dollar.

Yesterday, the British pound sank along with most currencies as traders blended out of assets considered riskier for the Greenback. Most of the economic analysts see the U.S. economy as nearly well-shielded should the coronavirus damage global economic growth heavily. Eyes will remain on the UK CBI Realized Sales for more trends in the GBP/USD pair.

Daily Support and Resistance

  • S1 1.2749
  • S2 1.2845
  • S3 1.2902

Pivot Point 1.2942

  • R1 1.2998
  • R2 1.3038
  • R3 1.3134

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2975, above the 1.2965 resistance become a support level. Closings of candles above this level may help secure a buy trade around 1.2975 with a target of 1.3070. Whereas, a bearish breakout of 1.2965 can lead the Cable towards 1.2930

. 

On the technical side, a daily closing beyond 100-day SMA level of 1.2955 can recall 1.3000 marks to the charts whereas February 13 top surrounding 1.3070 and 23.6% Fibonacci retracement at 1.3206 can entertain the buyers during further upside. The MACD and RSI are holding in the buying zone, supporting bullish bias for the GBP/USD pair. Let’s look for selling trades below 1.2965 and bullish above the same level today. 

USD/JPY – Daily Analysis

The USD/JPY sank 0.7% to 110.81 on increasing safe-haven demand. The USD/JPY pair failed to maintain its bullish momentum as investors started taking profit in the U.S. dollar, which leads the USD/JPY prices lower. The Japanese yen has now dropped back to the lower end against Greenback, and the pair now continues to trade around the 110.65-60 region.

Investors prefer safe-haven assets, mainly due to a rise in the number of coronavirus cases outside China, especially in South Korea and Italy. As per the latest report, the number of coronavirus cases in Italy’s Lombardy region rose from 54 on Sunday to 89, leaving the country with 150 confirmed infection, the highest in Europe, and around 5-times that of Germany whereas the news came as the total number of virus cases rose past 77,000 in China.

The USD/JPY currency pair may drop to levels below 111.30 if the German IFO data, which is scheduled to release at 09:00 GMT, prints below estimates, increasing recession fears and growing demand for the anti-risk Japanese yen.

Daily Support and Resistance

  • R3: 113.5
  • R2: 112.2
  • R1: 111.46

Pivot Point 110.9

  • S1: 110.16
  • S2: 109.6
  • S3: 108.29

USD/JPY – Trading Tips

The USD/JPY prices are trading with a bearish bias above 61.8% Fibonacci retracement level of 110.450. Closing of the candle above this level can extend buying until 110.850. Earlier, most of the bearish trend came after the USD/JPY violated the 38.2% Fibonacci retracement level on the 4-hour chart. On the lower side, the pair has the potential to go after the next support level of 109.650 in case of a bearish breakout of 110.250 support. Let’s consider staying bullish above 110.2 today to target 110.860. 

All the best for today! 

Categories
Forex Market Analysis

Overbought gold Seems to Head for 38.2% Fib – Quick Trade Plan! 

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Japan has recorded 837 coronavirus cases, including 691 cases related to the “Diamond Princess” cruise ship, with a fatality number of four. The number of confirmed cases in South Korea surged to 602 (6 deaths) as the country raised its infectious-disease warning to the highest level. 

Italy said there were over 150 cases across five regions (3 deaths). Meanwhile, in China, official numbers showed nearly 77,000 cases and over 2,400 deaths. The World Health Organization announced it is concerned about the growing number of problems without any apparent connection to China. Consequently, investors are moving funds into gold due to its safe-haven demand.

Gold – XAU/USD – Daily Technical Levels

Support     Resistance 

1,629.58    1,653.22

1,615.82    1,663.11

1,592.18    1,686.76

Pivot Point 1,639.47

On the technical side, the XAU/USD is trading at 1,679 and has entered the overbought zone where the chances of bearish corrections pretty solid. On the lower side, gold may show bearish correction until 1,658, which marks 38.2%. On the higher side, resistance continues to stay around 1,690. A bullish breakout of 1,690 may lead to gold prices to prices 1,710 resistance. Let’s consider taking sell trades to capture the correction below 1,680 until 1,670/1,668. Good luck! 

   

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Forex Market Analysis

WTI Crude Oil Drops Amid Coronavirus Fears – 61.8% Fibonacci Level In Focus! 

The WTI crude oil prices flashing red and dropped to $53.42 because the fears of coronavirus burdened on the crude inventories. The U.S. Crude Oil WTI Futures dropped 0.9% to $53.42.

The WTI crude oil prices flashing red and dropped to $53.42 because the fears of coronavirus burdened on the crude inventories. The U.S. Crude Oil WTI Futures dropped 0.9% to $53.42.

The WTI crude oil prices flashing red and dropped to $53.42 because the fears of coronavirus burdened on the crude inventories. The U.S. Crude Oil WTI Futures dropped 0.9% to $53.42.

The WTI oil inventories increased by 414,000 barrels for the week ended Feb. 14, the EIA said. That compared with expectations for a build of 2.5 million barrels, according to forecasts. The data supported crude oil prices yesterday, which raised more than 1% before decreasing today due to intensifying fears of the new coronavirus.

The global risk-off sentiment increased further on Friday after the World Health Organization (WHO) officials gave warning that the new coronavirus may break out globally at any time. 

According to the latest report, there are now 74,675 cases of the coronavirus in China, including 2,121 deaths in the country. Outside of China, there are 1,076 confirmed cases in 26 countries. The Chinese Commerce Ministry stays ready to take further steps to control the economic impact of coronavirus.

On the other hand, the U.S. State Department recently reiterated its travel warnings while Japanese officials and German Finance Ministry reports also showed attention about the coronavirus negative impact. Looking forward, coronavirus headlines will be the key to watch for fresh direction.

Daily Support and Resistance

  • S1 51.55
  • S2 52.75
  • S3 53.24

Pivot Point 53.95

  • R1 54.44
  • R2 55.15
  • R3 56.35

On the technical front, the WTI crude oil is trading at 52.94, heading towards 61.8% Fibonacci retracement at 52.25. On the 4 hour timeframe, the WTI prices are also expected to gain support around 52.25, which is the most extended by bullish trendline. Above this level, we may see bullish recovery in the WTI crude oil prices until 53.50 and 54. Good luck! 

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Forex Market Analysis

Gold’s Symmetric Triangle Breakout – Is It Going After 1,637? 

The precious metal gold is trading dramatically bullish at 1,622 in the wake of boosted safe-haven appeal. The U.S. stocks advanced, buoyed by China’s stance in supporting local businesses amid the impact of the coronavirus outbreak. At the same time, minutes of the Federal Reserve’s last monetary policy meeting showed that officials were optimistic about the U.S. economy.

The precious metal gold is trading dramatically bullish at 1,622 in the wake of boosted safe-haven appeal. The U.S. stocks advanced, buoyed by China’s stance in supporting local businesses amid the impact of the coronavirus outbreak. At the same time, minutes of the Federal Reserve’s last monetary policy meeting showed that officials were optimistic about the U.S. economy.

The precious metal gold is trading dramatically bullish at 1,622 in the wake of boosted safe-haven appeal. The U.S. stocks advanced, buoyed by China’s stance in supporting local businesses amid the impact of the coronavirus outbreak. At the same time, minutes of the Federal Reserve’s last monetary policy meeting showed that officials were optimistic about the U.S. economy.

The U.S. official data showed that the number of housing starts increased to an annualized rate of 1.567 million units in January (1.428 million units expected), and the producer price index (PPI) rose 0.5% on month in January (+0.1% expected). Later today, initial jobless claims for the week ended Feb. 15 (210,000 expected), and the Conference Board Leading Index for January (+0.4% on month expected) will be reported.

European stocks rebounded, as the Stoxx Europe 600 Index rose 0.8%. Germany’s DAX increased by 0.8%, France’s CAC added 0.9%, and the U.K.’s FTSE 100 was up 1.0%. Despite that, the gold’s demand is still at the peak, which is driving its prices higher. Let’s take a look at the technical side of the market. 


Support Resistance 

1,604.59     1,615.98

1,597.42     1,620.2

1,586.03     1,631.59

Pivot Point 1,608.81

Technically, the precious metal gold has violated the symmetric triangle pattern, which was keeping it under pressure at 1,591. A bullish breakout of this level has opened further room for buying until 1,627 and 1,637. While the support can be found around 1,612 now, let’s take with a bullish bias above 1,612 level for the targets mentioned. Good luck! 

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Forex Basic Strategies

Most Profitable Ways To Trade The Triple Top Chart Pattern

Introduction

Introduction

Introduction

The Triple Top is a bearish reversal pattern that helps traders in identifying the peak areas of the market. This pattern occurs when the market prints three consecutive tops nearly at the same price level of any underlying asset. The areas of the touchpoints are the resistance levels, and the pullback between these points is known as the swing lows. After the third high or third touchpoint, if the price breaks the support and goes below, the pattern is said to be complete.

Traders can then activate their positions on the sell-side. Most of the traders try to be extra conservative and wait for the exact pattern to occur. But it can be challenging to find the Triple Top Reversal pattern with all the three highs at the same in size. We should always remember that the technical analysis is more of art and less of science. So even if 80% of the pattern rules are met, we can take the trades by confirming those signals with other credible technical indicators.

The Psychology behind the Triple Top Pattern

The appearance of a Triple Top Pattern implies that the buyers are slowly losing momentum in the market. It might also mean that the buyers are not willing to push the price higher. At the same time, the sellers are interested in taking the price lower. The Triple Top pattern is a way more powerful pattern than most of the other credible patterns in the market. This is because the third failed attempt of the buyers implies that the sellers are way too aggressive than the buyers. Hence we can expect stronger downward moves.

Triple Top Pattern – Trading strategy

The Triple Top pattern occurs very rarely on the higher timeframe. Even if it occurs, this pattern often takes a lot of time to develop fully. However, on an intraday timeframe, this pattern can be observed quite often.
Step 1: Identifying the TTP on a price chart

In the below AUDCHF Forex chart, we can see the market printing a clear Triple Top chart pattern.

Step 2: Entry 

The strategy is to wait for the breakdown to happen so that we can activate our short positions. On the 27th of January, we can observe the breakdown that occurred in this pair, and that can be considered as a clear Sell Signal.

Step 3: Stop-loss & Take Profit

We can activate our sell positions as soon as we see a bearish confirmation candle. We can go for two different targets in this trade. Both are at the higher timeframe’s support area. Most of the traders believe that their target must be double as compared to the size of the Triple Top pattern, but it’s just a myth. Always book the profit according to the market circumstances.

If the trend is super strong, go for the deeper targets. Contrarily, if the market momentum is fading, book the profit at any significant area. Traders who are well versed with pattern trading can add positions when the market goes back to the entry point so that they can ride the whole show again. While trading the breakout or break down patterns, always place the stop-loss near the recent low.

Triple Top Pattern + Double Moving Average

In this strategy, we have paired the Triple Top pattern with the Double Moving Average to identify accurate sell signals. A moving average will help us in identifying significant trends, trading opportunities, and entry/exit levels. Many traders believe that if they find the magic number of the period, then they can easily beat the market, but it’s not true. There are infinite numbers of periods available, and traders should practice only 3 to 4 periods, to use this indicator effectively.

Step 1: Identifying the TTP on a price chart

In the below chart, we can observe the market printing the Triple Top pattern on the NZD/JPY 60-minute Forex pair. We have applied the double MAs on to the price chart.

The traditional way to trade this pattern is to wait for the break down to happen and then go for sell just like we did in the above example. But in this strategy, let’s tweak things a bit by adding the double moving average to the plot. In this strategy, we are using the 14 and 9-period average. This strategy is purely for the intraday traders only.

Step 2: Entry, Stop-loss & Take Profit

After price action printing the third top, if we observe an MA crossover happening, we can activate our sell positions even before the breakdown. By following this approach, we get to enter the trade ahead of time, while the breakdown traders wait for the break down to activate their position. Most of the professional traders use this approach to maximize their profits.

There are many ways to close our positions. We can book profit at a significant support area. The placement of stop-loss depends on the trader’s trading style. If you are an aggressive trader, the smaller stop-loss is good. But expect more hits before the trade performs. If you are a conservative trader, use an extra spacious stop-loss.

Bottom line

A pattern is said to be paramount when it offers the best risk-reward ratio trades. Also, the pattern must have a higher probability of occurring in intraday timeframes. The Triple Top is one such pattern that offers both of these demands to every trader. Also, remember that the Triple Top is a bearish reversal pattern, so only take short positions when you see this pattern on the price charts. Apart from the ones mentioned above, there are different other ways to activate our position in the appearance of this pattern. But the above ones are the safest and most profitable ways to trade.

Try identifying and trading this pattern on a demo account before trading on the live charts. We hope you find this article informative. If you have any questions, please let us know in the comments below. Happy Trading.

Categories
Forex Market Analysis

Gold Prices Inched Up – Eyes On Fed’s Minutes! 

The safe-have-metal prices rose as traders await the U.S. Federal Reserve minutes of its latest meeting, which is scheduled to release later in the day. The gold gained 0.2% to $1,607.25 by the time of writing this update. 

The safe-have-metal prices rose as traders await the U.S. Federal Reserve minutes of its latest meeting, which is scheduled to release later in the day. The gold gained 0.2% to $1,607.25 by the time of writing this update. 

The safe-have-metal prices rose as traders await the U.S. Federal Reserve minutes of its latest meeting, which is scheduled to release later in the day. The gold gained 0.2% to $1,607.25 by the time of writing this update. 

Gold is higher 5.7% during this year because investors evaluate the impact of the disease on economic growth amid thinking that the Federal Reserve will feel increased pressure to deliver the rate cut. Moreover, fears of the new coronavirus and its impact on global growth pushed the safe-haven metal higher.

Official data showed that new cases in China declined for a second straight day. However, the World Health Organization has cautioned there is not enough data to know if the epidemic was being controlled.

China continues to struggle to achieve the identity of manufacturing in the world’s 2nd-largest economy again after imposing substantial travel restriction and city lockdown to control the virus that has killed more than 2000 peoples so far. However, investors still seem confident that the economic impact may be temporary.

The epidemic is expected to impact business in China and drag down its economic growth. Earlier this month, Moody’s Investors Service has lowered the growth forecast for China from 5.8% to 5.2% for 2020.



Daily Support and Resistance

  • S1 1556.92
  • S2 1577.08
  • S3 1589.29

Pivot Point 1597.25

  • R1 1609.46
  • R2 1617.41
  • R3 1637.58

Technically, the gold prices are likely to face resistance around 1,612. Below this, gold prices are expected to gain support around 1,594 area. A bullish breakout of 1,612 can lead to gold prices towards the next resistance area of 1,622. At the moment, we can either wait for bearish retracement until 1,602 to take a buying trade or enter a buy trade above 1,612 level to target 1,620. Good luck! 

Categories
Forex Market Analysis

Crude Oil’s Ascending Triangle Pattern Breakout – What’s Next?

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The crude oil prices recently dropped despite China’s report that the pace of virus infection in the region continued to decrease. It is worth to mention that the Chinese health authorities confirmed 1,886 new cases of coronavirus and 98 further deaths as per yesterday’s report.

China recently imposed tighter restrictions on travel and movement within the country to control the spread of the virus. The International Energy Agency announced this month that the virus could reduce oil demand by 435,000 barrels per day in the first 3-months of the year. In contrast, global experts stated it is yet too immature to announce the outbreak is being controlled.

The equity market risk-tone is getting worse, and U.S. stock futures slipped from record levels after tech giant Apple said on Monday that it would not reach its revenue target of the March quarter, due mainly to slower iPhone production and weaker demand in China, as a side effect of the coronavirus outbreak. 

Looking forward, the traders are also awaiting news from the Organization of the Petroleum Exporting Countries and its allies about deepening production cuts to support oil prices.

    

Daily Support and Resistance

  • S1 51.57
  • S2 52
  • S3 52.28

Pivot Point 52.44

  • R1 52.72
  • R2 52.88
  • R3 53.31

On the technical front, the WTI crude oil prices have violated the ascending triangle pattern on the lower side to trade at 51.45 level. The breakout patterns open further room for selling until 50.50 and 49.45. While the MACD has recently started forming histograms below zero level, which are suggesting odds of more selling in the WTI crude oil prices. In case the WTI crude oil violates 52.30 resistance mark, we may see crude oil prices heading towards 53.50. Good luck! 

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Forex Market Analysis

Gold Symmetric Triangle Continues to Play – Carnivorous Underpins Safe Haven! 

On Monday, the precious metal gold prices were near a two-week high mounted in the past session as doubt prevailed over the influence of the coronavirus disruption on the global economy. Gold is trading sideways around $1,582.08 per ounce, having placed the highest since Feb. 3 at $1,584.65 during the last week.

On Monday, the precious metal gold prices were near a two-week high mounted in the past session as doubt prevailed over the influence of the coronavirus disruption on the global economy. Gold is trading sideways around $1,582.08 per ounce, having placed the highest since Feb. 3 at $1,584.65 during the last week.

On Monday, the precious metal gold prices were near a two-week high mounted in the past session as doubt prevailed over the influence of the coronavirus disruption on the global economy. Gold is trading sideways around $1,582.08 per ounce, having placed the highest since Feb. 3 at $1,584.65 during the last week.

China advanced to reduce its medium-term lending rate to accommodate the economy against Caronovirus. While the emerging market currencies and stocks began the week on a firm basis as the move is anticipated to ease traders’ concern around the economic thrust from the coronavirus break.

A bullish reversal in the emerging market currencies could put stress on the U.S. Dollar. A weaker U.S. Dollar is suitable for gold rates. It serves to boost foreign trade for the dollar-denominated asset securities. 


Support     Resistance 

1,576.77     1,587.95

1,569.76     1,592.12

1,558.58     1,603.3

Pivot Point 1580.94

Technically, the gold hasn’t changed much as it’s price continues to trade in the symmetric triangle pattern. It’s keeping the gold prices under a resistance level of 1,584. On the lower side, gold’s immediate support stays around 1,577. A bullish breakout of 1,584 can lead to gold prices towards the next target level of 1,590. Conversely, the bearish breakout of 1,570 can lead to gold prices towards 1,560. The MACD is holding in a bullish zone, and it may help us capture a buying trade above 1,580 with a target of 1,588. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, February 12 – Top Trade Setups In Forex – Fed Chair Powell Testimony Ahead! 

The U.S. National Federation of Independent Business’s Small Business Optimism Index posted at 104.3 for January, better than 103.5 expected.

The U.S. National Federation of Independent Business’s Small Business Optimism Index posted at 104.3 for January, better than 103.5 expected.

The U.S. National Federation of Independent Business’s Small Business Optimism Index posted at 104.3 for January, better than 103.5 expected.

Later today, the U.S. government is expected to post a monthly budget deficit of 10.0 billion dollars for January. The European stocks ended in positive territory, with the Stoxx Europe 600 Index rising 0.9%. Germany’s DAX advanced 1%, and both France’s CAC and the U.K.’s FTSE 100 were up 0.7%.

The Safe-haven assets were broadly lower in price. U.S. government bond prices eased, lifting the benchmark 10-year Treasury yield to 1.589% from 1.574% Monday.

Economic Events to Watch Today 

 

 

EUR/USD – Daily Analysis

The EUR/USD rebounded 0.1% to 1.0919, halting a six-day decline. European Central Bank President Christine Lagarde hinted that ECB might not ease monetary policy further, saying: “Monetary policy cannot, and should not, be the only game in town.” Later today, the Eurozone’s December industrial production will be reported (-2.0% on month expected).

The support to Euro came after the dovish remarks by the ECB President Lagarde, iterating that the slowing growth momentum in the Eurozone also decreased pressure on prices, which further helped the pair’s slide beneath the 1.0900 level for the first time after early October.

Looking forward, the shared currency will likely stay on the bullish track, mainly if the equities market continues to flash green in the wake of coronavirus development. Moreover, the riskier currencies like the NZD and the Aussie are also flashing green an picked up a strong bid at the press time.

In case the Eurozone industrial production disappoints expectations, the single currency may drop and revisit support at 1.0879 (October 1 low). Besides, the traders will keep their eyes on the German 10-y Bond Auction for taking fresh clues.

Daily Support and Resistance

  • S1 1.0826
  • S2 1.0876
  • S3 1.0893

Pivot Point 1.0925

  • R1 1.0943
  • R2 1.0975
  • R3 1.1025

EUR/USD– Trading Tips

The EUR/USD is consolidating in a bearish zone around 1.0912 in the wake of a stronger dollar and weaker Euro. Presently, the pair is very near to the strong support mark of 1.0879, and the EUR/USD has also concluded a daily candle over this level. The pair has also formed a Doji candle accompanied by a robust bearish trend, which implies the odds of a downward reversal unto 1.0945 and 1.0980. Alternatively, the violation of 1.0925 can push buying in Euro; elsewhere, it may extend trading bearish unto 1.0880.

GBP/USD– Daily Analysis

The GBP/USD rose 0.3% to 1.2954. Official data showed that the U.K. fourth-quarter GDP grew 1.1% on year (+0.8% expected, +1.1% in the third quarter).

The GBP/USD rate is growing higher this week as the moving average extends support alongside the weakness in the U.S. dollar. The GBP/USD was last seen around the 1.3000 resistance after placing a low around 1.2870 in the early week.

The GDP figures from the United Kingdom published on Tuesday had little influence on the GBP/USD price as economic growth was not surprising in the fourth quarter, which was widely anticipated. A recovery yesterday was held lower by a major technical mark at 1.2960, although the pair is seen climbing over it in early trading today.

Daily Support and Resistance   

  • S1 1.2762
  • S2 1.2837
  • S3 1.2876

Pivot Point 1.2911

  • R1 1.295
  • R2 1.2985
  • R3 1.306

GBP/USD– Trading Tip

The GBP/USD broke above 1.2950 resistance level, which is now looking to test the next resistance around 1.3045. The following support level is likely to be found around 1.2950 for now. On the 4 hour timeframe, 1.3000 is the most crucial level for the GBP/USD as a violation of this level can lead Sterling prices further higher towards 1.3045 and 1.3065 in the coming week. The MACD and RSI are holding in the buying zone, supporting bullish bias for the GBP/USD pair. Let’s look for bullish trades above 1.3000 today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair is flashing green and struggling to cross the 1.10 level, mainly due to the Japanese yen weakness in the wake of risk-on market sentiment. Currently, the USD/JPY is currently trading at 109.89 and consolidates in the narrow trading range between the 109.77 – 109.90. 

In the market, traders are found on the waiting mode for economic data and a carefully optimistic Federal Reserve chair Jerome Powell who resumes his semi-annual congressional testimony, performing before the Senate Banking Committee later today in New York.

At the coronavirus front, the latest numbers China’s Health Commission gave showed 1,638 new cases of coronavirus contaminated people from Hubei. Compared to the prior day’s 2,097 incidents, the disease appears to decrease gradually. Moreover, the World Health Organization (WHO) has already said that the vaccine could be ready in 18 months, giving a boost to the risk-on.

As a result, it increased from 1.40% to 1.42%, ten-year yields from 1.57% to 1.59%, boosting the U.S. dollar and sending the yen and risk asset classes like gold lower. The S&P 500 and Nasdaq Composite each posting a record finish, and the Dow Jones Industrial Average was virtually unchanged.

So, this news has also improved risk sentiment and sentiment in global financial and commodity markets (copper +0.97%, CRB index +0.44% time of writing) as it is showing that the Chinese are making progress in fighting and controlling the virus. The Federal Reserve’s Chair, Jerome Powell, sounded dovish but had a cautious tone in his semi-annual testimony to Congress.

    

Daily Support and Resistance

  • S1 109.33
  • S2 109.54
  • S3 109.66

Pivot Point 109.76

  • R1 109.87
  • R2 109.97
  • R3 110.18

USD/JPY – Trading Tips

On Wednesday, the USD/JPY pair is trading in a narrow range of 110.025 – 109.600 due to a lack of economic events. At the moment, the USD/JPY pair is looking to cross above the horizontal resistance level of 110.025. 

In case, the USDJPY manages to break above 110.025 level; we may see USD/JPY prices going towards 110.350 at first and then towards 110.850. Alternatively, the USD/JPY can drop to 109.600 in case of failure to break above 110.025. 

All the best for today! 

Categories
Forex Market Analysis

Daily F.X. Analysis, February 10 – Top Trade Setups In Forex – Post NFP Trade Plan! 

The U.S. Labor Department reported that the economy added 225,000 nonfarm payrolls in January, higher than the addition of 162,000 expected. Meanwhile, the jobless rate climbed to 3.6% (3.5% expected). Average hourly earnings grew 0.2% on month (+0.3% expected) and were up 3.1% on year (+3.0% expected).

The U.S. Labor Department reported that the economy added 225,000 nonfarm payrolls in January, higher than the addition of 162,000 expected. Meanwhile, the jobless rate climbed to 3.6% (3.5% expected). Average hourly earnings grew 0.2% on month (+0.3% expected) and were up 3.1% on year (+3.0% expected).

The U.S. Labor Department reported that the economy added 225,000 nonfarm payrolls in January, higher than the addition of 162,000 expected. Meanwhile, the jobless rate climbed to 3.6% (3.5% expected). Average hourly earnings grew 0.2% on month (+0.3% expected) and were up 3.1% on year (+3.0% expected).

Official data showed that wholesale inventories (final reading) fell 0.2% on month in December (-0.1% expected).

Economic Events to Watch Today 

 

 

EUR/USD – Daily Analysis

The EUR/USD dropped 0.3% to 1.0945, the lowest level since October. Official data showed that German industrial production contracted 3.5% on month in December (+0.6% expected), the largest decline in a decade.

The EUR/USD currency pair bullish moves could be limited mainly due to the risk-off market sentiment as coronavirus fears still on the peak and at the front of the latest news, recorded more than 37,000 known cases across the globe and 813 deaths so far.

The investors may ignore the China data in Asia due to coronavirus fears, which showed producer price index, a gauge of factory gate prices, edged up 0.1% on year in January, compared with a 0.5% decline in December. 

At the data front, Eurozone’s Sentix Investor Confidence (Feb) will be released at 09:00 GMT. On the other hand, the focus will be on the Federal Reserve President’s speech and short-term bill auctions.

 

Daily Support and Resistance

  • S1 1.0874
  • S2 1.0916
  • S3 1.0931

Pivot Point 1.0957

  • R1 1.0972
  • R2 1.0998
  • R3 1.104

EUR/USD– Trading Tips

On Friday, the EUR/USD broke below the horizontal support level of 1.0995, which is now working as a support level for the EUR/USD pair. Closing of candles below this 1.099 is confirming a breakout and demonstrates that this level is currently working as a resistance. It may keep the Euro bearish until 1.09374. 

On the 4 hour timeframe, the pair’s MACD is closing histograms under 0, demonstrating chances of further selling in the pair while the bearish channel is also likely to get violated until and unless Nonfarm payroll comes out better than expected. 

GBP/USD– Daily Analysis

The GBP/USD slid 0.3% to a six-week low of 1.2893, the weakest level since November. The currency pair bearish trend also could be the reason for coronavirus fears because investors were sacred and poured money into the safe-haven treasuries. As in result, the greenback succeeded in gaining support from it.

At the front of the latest news, I have recorded more than 37,000 known cases across the globe and 813 deaths so far. As a result, the U.S. ten-year treasury yields continue to positive around 1.58%, whereas Asian stocks register mild losses by the press time.

Looking forward, due to the lack of data in the economic calendar, the traders will find clues from China and the U.K. headlines for taking fresh directions. Whereas, the positive headlines will likely support the pair. 

The GBP/USD is gaining momentum over the weaker dollar as the U.S. Labor Department reported that the economy added 225,000 nonfarm payrolls in January, higher than the addition of 162,000 expected. Meanwhile, the jobless rate climbed to 3.6% (3.5% expected). Average hourly earnings grew 0.2% on month (+0.3% expected) and were up 3.1% on year (+3.0% expected).


Daily Support and Resistance

  • S1 1.2753
  • S2 1.2831
  • S3 1.2858

Pivot Point 1.2909

  • R1 1.2936
  • R2 1.2987
  • R3 1.3065

GBP/USD– Trading Tip

A day before, the GBP/USD broke below 1.2950 support is to test the next support level of 1.2925. It’s the most crucial level for the GBP/USD as a violation of this level can lead Sterling prices further down towards 1.2870 and 1.2830 in the coming week.  

At the moment, the GBP/USD has neutral candles below 1.2920 support level, which is suggesting a bearish trend in the GBP/USD. The MACD and RSI are holding in the bearish zone, supporting selling bias for the GBP/USD pair. 

USD/JPY – Daily Analysis

The USD/JPY currency pair flashing red and dropped below the 110 level, mainly due to greenback losing its bullish momentum ahead of the pre-NFP data. The USD/JPY currency pair s currently trading at 109.97 and consolidates in the range between the 109.81 – 110.03. The currency pair registered a fresh high at 110.03 during early Asia but failed to maintain and dropped again.

We have seen a strong run in U.S. equities despite the renewed threat of the coronavirus while the Japanese yen felt the stampede nonetheless. 

At the coronavirus front, China declared the latest update that there were an additional 73 deaths losses and 3,143 new cases of the coronavirus in China as of the end of February 6, the National Health Commission said in its daily update on Friday. This brings the total number of deaths in China to 636 and the total number of confirmed cases to 31,161.

Meanwhile, U.S. 2-year Treasury yields consolidate in the narrow range between 1.43% and 1.47%, and 10-year yields moved between 1.63% and 1.68%. Moreover, the markets are pricing a 10% chance of a rate cut at the next Fed decision on March 18, and a terminal rate of 1.18% (vs. Fed’s mid-rate at 1.63% currently).

Looking forward, the trader’s focus will be on January nonfarm payroll and hourly earning for taking fresh direction.

Daily Support and Resistance

  • S1 108.57
  • S2 109.11
  • S3 109.47

Pivot Point 109.66

  • R1 110.01
  • R2 110.2
  • R3 110.75

USD/JPY – Trading Tips

The USD/JPY pair is trading with a bullish bias in the wake of weakening Japanese yen. The pair has crossed over 109.300 resistance level, and it seems to head towards 109.850. On Wednesday, the USD/JPY is likely to find resistance around 110.300 after violating 109.850. While support remains at 109.250. The RSI and MACD have crossed over in the buying zone and are supporting the bullish bias. Let’s look for buying trades above 109.26 today.

All the best for today! 

Categories
Forex Daily Topic Forex Price-Action Strategies

‘Set and Forget’ Tailor Made for H1 Breakout Trading

In today’s article, we are going to demonstrate an example of H1 breakout strategy. It is a typical example of the rule ‘Set and Forget’. To trade on the H1 chart, we must be patient and let the price do its job once we have taken entry. Let us proceed. The chart shows that the […]

In today’s article, we are going to demonstrate an example of H1 breakout strategy. It is a typical example of the rule ‘Set and Forget’. To trade on the H1 chart, we must be patient and let the price do its job once we have taken entry. Let us proceed. The chart shows that the […]

In today’s article, we are going to demonstrate an example of H1 breakout strategy. It is a typical example of the rule ‘Set and Forget’. To trade on the H1 chart, we must be patient and let the price do its job once we have taken entry. Let us proceed.

The chart shows that the last candle breaches closing below the level of support. As far as the H1 breakout strategy is concerned, traders must wait for the next candle to be bearish closing well below the breakout candle.

The last candle comes out as a bearish candle closing well below the breakout candle. The sellers wait for such candle to confirm a breakout. The sellers may trigger a short entry right after the last candle closes. Stop loss is to be set above where the trend starts and Take Profit is to be set with a 1:1 risk-reward.

The next candle comes out as a bearish candle as well. The sellers must let the price to hit the target. To be precise, they shall not even look at the chart. Stop Loss and Take Profit are set. All they can do is let the price do its job.

Where does that one come from? The chart produces a bullish engulfing candle. It is a strong bullish reversal candle, which may change the trend. To be honest, a candle like this may intimidate any price action trader. Do not forget this is an H1 chart and the entry is taken on H1 breakout strategy. Set and Forget rule comes very handy in this trade setup. Let us assume, we do not even know that the chart produces such a candle. We let the market do its own job.

The next candle comes out as a bearish inside bar. It looks more ominous. If the next candle comes as a bullish engulfing candle, the sellers will be in serious trouble. Let us proceed to the next chart.

The next candle comes out as a doji candle followed by another doji candle. However, the price heads towards Take Profit level and hits the target at last. If we keep looking at such chart, would we be able to hold ourselves back from closing the entry manually? It may get very tough for the traders to hold their nerves with such price action when a trade is running. If a trader trades on the daily or the H4 chart, he may consider closing the entry manually. With the H1 chart trading, traders may not do this. In other words, set and forget when you are trading on the H1 chart.

Categories
Forex Price-Action Strategies

A Different Kind of Breakout Does Its Job Well

In today’s lesson, we are going to demonstrate an H1 breakout trade setup. Usually, the breakout candle makes a breakout by breaching through a level of support/resistance. Today, we are going to study about a breakout that takes place right at the level of resistance, which becomes support after the breakout. We need to be […]

In today’s lesson, we are going to demonstrate an H1 breakout trade setup. Usually, the breakout candle makes a breakout by breaching through a level of support/resistance. Today, we are going to study about a breakout that takes place right at the level of resistance, which becomes support after the breakout. We need to be […]

In today’s lesson, we are going to demonstrate an H1 breakout trade setup. Usually, the breakout candle makes a breakout by breaching through a level of support/resistance. Today, we are going to study about a breakout that takes place right at the level of resistance, which becomes support after the breakout. We need to be familiar with such a breakout since it happens quite a lot.

The price produces a bullish engulfing candle. The buyers wait for such a good-looking bullish reversal candle. They shall wait for the price to go towards the level of resistance and makes a breakout later. Let us proceed to the next chart.

The price heads towards the North but not right after the reversal candle. However, the bullish momentum looks good. Look at the last candle. It closes right at the level of resistance. It seems the price may make a breakout here soon.

The next candle closes well above the level of resistance. However, the candle is formed right at the level of resistance. Typically, a bullish breakout candle’s 25% of its lower body shall remain below the level of resistance. In this case, candle’s 100% (almost, ignore that very tiny lower body) body is above the level of flipped support. Such a breakout takes place in the Forex market very frequently.

The next candle closes well above the breakout candle. This means the breakout is confirmed. The buyers may trigger a long entry right after the last candle closes.

After triggering the entry, the price heads towards the upside with good bullish momentum. The chart produces two consecutive bullish candles after breakout confirmation. The buyers shall wait for the price to hit the target. For that, the price still has some space to travel towards the North.

The price hits the target and comes back down a little. It goes towards the level again. In this trade setup, the breakout candle’s breakout is not a good one that price action traders look for. In many cases, we may see that the chart does not confirm a breakout but goes another way around. It happens because such a breakout consumes some extra space. Thus, the majority of such breakouts are not confirmed and may not end up offering entry. However, once the breakout is confirmed, and there is enough space for the price to travel, most likely trade setup would work in traders’ favor. In the beginning, we may get puzzled with such a breakout. The fact is if the next candle after a breakout closes above (bullish market) the breakout candle, it is a valid breakout and works as well as the typical breakout candle does.

Categories
Forex Market Analysis

WTI Crude Oil Prices Rose Despite Rising Stockpiles! 

Today in the early Asian session, the WTI crude oil prices rose, although the report of the American Petroleum Institute (API) said U.S. oil inventories increased last week.

Today in the early Asian session, the WTI crude oil prices rose, although the report of the American Petroleum Institute (API) said U.S. oil inventories increased last week.

Today in the early Asian session, the WTI crude oil prices rose, although the report of the American Petroleum Institute (API) said U.S. oil inventories increased last week.

The U.S. Crude Oil WTI Futures gained 1.0% to $51.12. The WTI Crude Oil prices started tp recover yesterday after reports said the OPEC+ representatives meeting in Vienna discussed additional cuts of up to 1.0 million barrels per day to cope with lost demand from China’s coronavirus crisis.

Despite the gains this week, WTI crude oil is still down more than 20% since early January because of the coronavirus depressed global demand. It is worth to mention that the issue for the market will likely be increased if the restriction continues for an extended period because due to this demand loss will become increasingly difficult for the market to swallow.

The API said in its weekly report that crude stockpiles rose by 4.2 million barrels for the week ended Jan. 31, compared with a draw of about 4.3 million barrels reported for the week before.

At the coronavirus front, over 490 people have died in China from the coronavirus infection, said officials on Wednesday. Also, the confirmed number of infected citizens grew to 24,324 from 20,438 confirmed cases the day before.

There are still plenty to be concerned for, and the price of oil is valid, sliding further overnight to a low of $49.41bbls. Chinese oil demand has already dropped by 20% because of dwindling air travel, road transportation, and manufacturing.



Daily Support and Resistance

  • S3 45.79
  • S2 48
  • S1 48.77

Pivot Point 50.2

  • R1 50.98
  • R2 52.41
  • R3 54.62

Technically, the WTI crude oil seems to violate the downward channel at 51.50, which may drive the WTI prices higher until 51.70. A bullish breakout of this level can lead oil prices further higher towards 52.25 today. The EMA and MACD are pointing into the bullish zone, suggesting the chances of a bullish trend continuation. Let’s consider taking buying trade above 51.25 today to aim for 52.25. All the best! 

Categories
Forex Price-Action Strategies

Patience Required Even with H1 Breakout Trade Setup

In today’s lesson, we are going to demonstrate an example of an H1 breakout strategy. Usually, the price heads towards the trend’s direction with good momentum on the H1 breakout trade setup. In today’s example, the price does not behave as it usually does. Let us get started.

In today’s lesson, we are going to demonstrate an example of an H1 breakout strategy. Usually, the price heads towards the trend’s direction with good momentum on the H1 breakout trade setup. In today’s example, the price does not behave as it usually does. Let us get started.

In today’s lesson, we are going to demonstrate an example of an H1 breakout strategy. Usually, the price heads towards the trend’s direction with good momentum on the H1 breakout trade setup. In today’s example, the price does not behave as it usually does. Let us get started.

The price after being bullish, it has been on consolidation. Look at the last two candles. The price heads towards the consolidation resistance. The buyers eagerly wait for a bullish breakout at the level of resistance on such price action. Let us proceed to the next chart.

Here comes the breakout candle. The buyers love to get a breakout with such a candle. Now, they must wait for the next candle to close above the breakout candle. If that happens, traders may trigger a long entry.

The next candle comes out as a bullish candle closing well above the breakout candle. The buyers may trigger a long entry right after the last candle closes. The stop loss is to be set below the trend-initiating candle, and the take profit is to be placed with 1:1 risk-reward. Six out of ten times, the price goes towards the take-profit level with ease in a hurry. Let us proceed to the next chart and see how this one goes.

The price does not head towards the North with good bullish momentum. The way it has been going for the last five candles, it looks ominous. A question may be raised here, “shall we close the entry?” The price still has a lot of space to hit take profit level. The market is not about to close down for the weekend or holiday. Thus, we must be patient and hold the entry. In other words, we shall apply the rule “set and forget.” The set and forget rule is tailor-made for intraday trading, such as the H1 chart to the 5M chart. Let us wait and find out what happens.

After a long while, the price makes a move towards the North again. It seems the trade is going to get the buyers some green pips. They must wait and let the price to hit the target.

It loses its momentum again a bit, but it hits the target. We often head that patience is required more when traders trade on major charts such as the H4, the daily or the weekly. The reality is patience is required for traders of all kinds. Today’s example has proved this again.

Categories
Forex Videos

The Best Way To Trade The NFP

https://youtu.be/q9Qa97yJetU

https://youtu.be/q9Qa97yJetU

How to trade US Non-Farm payrolls like the professionals do

The United States Non-Farm payrolls provide a picture of the country’s labor market, and the report usually comes out on the first Friday of each month at 13:30 GMT.
The report measures the number of jobs gained during the previous month and which are not farm-related. The report includes the unemployment rate and average hourly earnings. It is one of the biggest market-moving events of each month. It tells policymakers in the United States if the country is close to maximum employment and will help to determine future interest rates. If job growth is close to the maximum, the Federal Reserve will typically look to raise interest rates, assuming that inflation is where they need it to be, and vice versa.

 

Example A


In example A, let’s look at a 30-minute chart of the EURUSD for the 10th of January, when the figures were released, and where 164K jobs were expected to be added to the US labor market.
Just prior to the release of the NFP, seller’s drove price action down at position 1. We can only determine that the market expectation was for a strong number, possibly above 164K. However, as marked on our chart at position 2, with the price adjacent to the 30-minute candle associated with the release at position A after the number came out, which was 145K, less than expected, the price action spiked higher to position B before being sold again to position C, an overall move of 27 pips during this period. Buyers then drove the price action higher at position 3, before price action consolidated between an area of support and resistance at position 4. Please note that the time on our chart is set 2 hours ahead of the actual time.

Example B


Let’s now look at example B, which is the same chart, but with some trading ideas. In the run-up to the release of the NFP, we can see that an area of resistance and support has formed at positions A and B and were a sell-off happened just before the release, probably because the market expected a strong number from the United States.
There was an opportunity to go short at position B when price action fell below the support line. A tight stop loss should have been implemented. On this occasion, 17 pips were available to the downside with the possibility of bagging some profit and closing the trade just before the data release.
However, we already know that the data was worse than expected and should have anticipated that the dollar would start to lose ground. We can also see tails developing on some of the candlesticks and a classic V formation, which occurs during this event.
The next trade opportunity is when price action moves higher, and above our previous areas of support at position B, and above our previous area of resistance at position A and where position D offers a buying opportunity, as price action takes out all of the previous highs.
This setup can also be applied in reverse, should the NFP data be better than expected.
If the data is + or – a few thousand as per the expected number, expect a muted response by the market.
Had the number been much better than the 164k, which was expected, we would have likely seen a further decline in the pair. Bear in mind that when this data is released, it is dependent on how the market assimilates it. Sometimes the data may be bad, but not as bad as expected, and sometimes it could be good, but not as good as expected, and often the NFP report is released simultaneously with

the Canadian unemployment release.
Therefore it is not wise to pull the trigger on a trade within a couple of minutes either side of this very important data release. The best way to trade Non-Farm payrolls is in the hour or so before the event or an hour or so after the event.
Keep out for this classic price action formation for each payroll event as it recurs an awful lot!

Categories
Forex Price-Action Strategies

The ABC Pattern’s C Point May Confuse You Time to Time

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. In this example, the price does not make a full-wave correction to produce C point. However, the signal candle comes out as a strong reversal candle, which drives the price towards the trend’s direction. Let us get started. The price […]

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. In this example, the price does not make a full-wave correction to produce C point. However, the signal candle comes out as a strong reversal candle, which drives the price towards the trend’s direction. Let us get started. The price […]

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. In this example, the price does not make a full-wave correction to produce C point. However, the signal candle comes out as a strong reversal candle, which drives the price towards the trend’s direction. Let us get started.

The price makes a long bearish move and produces a bullish reversal candle. The price heads towards the last swing high. The buyers are to wait for a breakout at the level of resistance (swing high) first. A correction followed by a bullish engulfing candle at the breakout level would be the signal to go long here.

The chart makes a breakout keeps producing bullish candles. The buyers are to wait for the chart to produce a bearish reversal candle to make a downside correction. Since the chart produces one more bullish candle, it may make a correction soon.

After producing a bearish reversal candle, the price keeps making a correction. Ideally, the buyers would love to see the price come back to the breakout level. However, it is the Forex market. Things do not always go by the book here.

As mentioned, things do not always go by the book. The price does not make a full-wave correction. Nevertheless, look at the bullish reversal candle. The candle closes way above the last swing high. The buyers may trigger a long entry right after the last candle closes. We must remember that this is not an A+ entry as far as the ABC pattern trading is concerned. Let us proceed to the next chart to find out how the trade goes.

The price heads towards the North with good bullish momentum. Typical 1 R is achieved as well. In a word, the long entry gets the profit for the buyers. As mentioned earlier, this is not an A+ entry. The question is, shall we go for such entry?

In most cases, such price action may get us profit. However, if we do not like to take losses, we may skip taking such entry. Especially, in the beginning, traders find it hard to digest losses. Thus, for beginners, it would be best if they skip taking such entry and only go for A+ entry. Traders learn the art of digesting losses with time. Yes, you have read it right. Digesting losses in Forex trading is an art. If you have already learned the art, then you may as well go with an entry like this. In the end, you will be able to come out with a profit.

Categories
Forex Daily Topic Forex Price-Action Strategies

Look for Such Price Action to Trade on the ABC Pattern

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. The trend-initiating candle comes out as a bullish engulfing candle followed by a bullish breakout. The price then makes a bearish correction and makes a bullish move upon producing a bullish reversal candle at a flipped support. Let us demonstrate with the charts how it happens.

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. The trend-initiating candle comes out as a bullish engulfing candle followed by a bullish breakout. The price then makes a bearish correction and makes a bullish move upon producing a bullish reversal candle at a flipped support. Let us demonstrate with the charts how it happens.

In today’s lesson, we are going to demonstrate an example of the ABC pattern trading. The trend-initiating candle comes out as a bullish engulfing candle followed by a bullish breakout. The price then makes a bearish correction and makes a bullish move upon producing a bullish reversal candle at a flipped support. Let us demonstrate with the charts how it happens.

The price has been bearish, but it has produced a bullish engulfing candle at the support zone. The buyers are to wait for the price to head towards the North and make a bullish breakout at the last swing high. Let us proceed to the next chart.

The price makes a breakout at the nearest swing high. The buyers are to wait for consolidation or correction and a bullish breakout. The last candle comes out as a strong bullish candle as well. It may keep going towards the North. Let us wait and find out what it does next.

It starts having a correction. Then, it produces a bearish inside bar followed by two more bearish candles. The price is at the flipped support. The buyers are to keep their eyes on this chart very closely.

Here it comes. The chart produces a bullish reversal candle. Do not miss the point that the level is the breakout level when the price heads towards the North. Such level is very significant as far as the ABC pattern trading is concerned.

The price makes a bullish breakout again and produces a new higher high. Traders may trigger a long entry right after the last candle closes by setting stop loss below the level of flipped support. It usually provides at least 1:1 risk-reward, which is the safest option. Let us proceed to the next chart to find out how it goes.

The price heads towards the North as expected. It hits the target (1R) with ease. The chart suggests that it may go towards the North further. Anyway, the ABC pattern traders shall enjoy their profit and hunt for the next one somewhere else.

In this example, we have seen that four aspects of the ABC pattern trading such trend initiating candle, breakout, reversal candle at the breakout level, and the signal candle get 10 on 10. Consequently, the price heads towards the desired direction with good momentum. If any of them fails to get 10 on 10, the trade may not go, exactly we would love to see it go. To keep excellent trading consistency, try your best to trade the ABC pattern on such price action that we have demonstrated today.

Categories
Forex Price-Action Strategies

The Right Strategy with the Wrong Chart Creates a Losing Trade

In today’s lesson, we are going to demonstrate an example of the daily-H4 chart combination trading, which has everything to offer a good entry. However, the outcome is not what we would love to get. Let us dig into it and find out what may go wrong with the setup sometimes and where we have to be careful.

This is a daily chart. Look at the last candle. This is an A+ bearish engulfing candle, which the price action traders crave for. The sellers are to flip over to the H4 chart for the price to consolidate and make a bearish breakout to offer them a short entry. Let us flip over to the H4 chart.

The price consolidates for six H4 candles (remember the number six). However, it has not made any breakout. Let us assume that we keep an eye on the pair. Let us proceed to the next chart.

The chart produces a breakout candle. If we are to give it a grade, it would get A+ as well. It means everything looks good. We may trigger a short entry right after the breakout candle closes.

The price does not head towards the South according to the sellers’ expectations. It goes another way and hits the stop loss. The daily reversal candle and the H4 breakout candle both have all the attributes to attract the sellers to go short on the pair. Is there anything wrong with the entry?

First, it may happen. It does not matter how good a trade setup looks. It may get us loss. It is a game of probability after all.

Now concentrate here. This entry looks good in naked eyes but it is not. Do you remember how many candles it consolidated with? It consolidated with six H4 candles and makes the breakout by the 7th candle. It means the H4 support becomes daily support. Thus, an H4 breakout is not enough to attract the sellers to go short on the pair. To have a clearer view, have a look at the daily chart again.

The last candle comes out as a bullish inside bar. It means the pair is still bearish biased but it is for the daily traders. If the daily chart produces a bearish engulfing candle closing below the level of support, the daily sellers may go short. Meanwhile, it produces a false signal on the H4 chart and makes some sellers lose money.

Trading at the right chart with the right strategy is an important aspect to be successful in trading. It does not matter how good an angler you are. If you do not choose the right place and the right hook, you are going to come back home empty-handed.