Hantec Markets brings you the latest technical analysis on the GBP/USD pair for the March 2nd in this video.
GBP/USD — Cable is an interesting chart at the moment. We have had this one day bearish reversal in the daily chart and a few corrective signals coming through now. We have stochastics showing sell signal and MACD lines rolling over with no crossover yet. The RSI has started to deteriorate. Looking at the hourly chart we have support levels intact at 1.53 and 1.5330. We had a slight rebound in the last few minutes with Manufacturing PMI came out of UK better than expected. We are trading below the moving averages which tends to be more negative though we have support levels intact. If you are trading long positions on this chart you need to be aware of these negative signals that are starting to come through.
Hantec Markets brings you the latest technical analysis on the GBP/USD pair for the March 2nd in this video.
The US Indices finished in the red on Friday with weak economic data in the US. Despite the decline on Friday it was the best month since March 2011. NASDAQ fell by 0.49%, S&P 500 fell by 0.30% and Dow lost 0.45% from its value. The US Dollar traded mixed against most major currencies after mixed economic data from US. The Chicago PMI came out worse than expected 48.5 vs. 58.4 forecast and Prelim GDP came better than expected at 2.2% vs. 2.1% forecast. Today ISM Manufacturing PMI is expected at 53.4 vs. 53.4 previously. Gold rose on Friday to close at $1,212 an ounce. Crude oil rose to close at $49.44 a barrel. The Euro fell versus US Dollar to close at 1.1194 despite good economic data in the Eurozone. According to 4 hour chart the EUR/USD has broken below support level of 1.1270. As long as the pair maintains these conditions we might see a fall towards 1.11. Breaching 1.1270 once again may start a reversal towards 1.350. Today CPI Flast Estimate and Unemployment rate are expected at -0.5% and 11.4% respectively. The Pound rose versus US Dollar to close at 1.5438. Technically according to 4 hour chart the pair has broken the bullish trend line with MACD below 0. Should the pair succeed in breaching the trend line once again we might see a rise towards 1.55. However a failure may start a retracement towards 1.53 level. Today high volatility is expected as Nationwide HPI and Manufacturing PMI reports are expected to be released at 0.4% vs. 53.5 respectively.
This video gives Swing trading tips for beginners.
1. Always use a simple strategy when you are starting out. Complex strategies can be too overwhelming and confusing for beginners.
2. Always use Stoploss orders. This is the biggest reason why traders lose. Don’t make the same mistake.
3. Trade both directions. The best opportunity comes from trading both sides of the market.
4. Keep your Risk to Reward ratio 3 to 1. This ratio keeps you trading profitable and produce positive expectancy.
5. Don’t trade in a vacuum. Follow key announcements and keep track of major trends.
6. Use Market Sentiment indicators.
7. Always go with the main trend. Its less risky, less surprising and with better profit potential.
8. Don’t impose your will on the market. You cannot control financial markets. Markets do not care about feelings.
9. Be careful paper trading. Paper trading does not involve emotions and emotions are difficult to control for beginners.
Still attempting to recover from recent weeks EUR/USD pair continued to slip to close the week at $1.1296 to drop by 0.02%. Against the British Pound the Euro did not fare well either with EUR/GBP to drop by 0.21% to the market price of 0.7254. Currency pairs attached to US Dollar did better this past friday with GBP/USD to jump by 0.20% to 1.5438. Following the GBP/USD was USD/JPY and 0.28% increase resulting in an exchange rate of 119.63. The USD/CAD saw no change this Friday remaining at 1.2515 level. Oil seems to be continuing its recovery over the past ew weeks. A barrel of West Texas Intermediate increased in price by 3.30% edging it closer to $50 range to close on Friday at $49.76. Brent Oil also saw a bump in price of 4.21% to result in $62.58 a barrel.
Major indices did not do as well this last Friday. Also recovering from recent price dip was Gold. COMEX Gold and Gold Spot both recorded increases in price with COMEX jumping by 0.25% and Gold Spot by 0.31% to reach market price of $1,213.10 and $1,213.18 respectively. NASDAQ dropped by 0.49%, Dow Jones by 0.45% and S&P 500 by 0.30%.
The MACD Indicator is a trend momentum indicator developed by Gerard Appel. It measures distance between 2 EMA’s. MACD is acronmym for Moving Average Convergence Divergence. The MACD turns two trend following indicators, moving averages in to a single momentum oscillator by subtracting the longer moving average from the shorter moving average. It offers both trend following and momentum.
MACD Basic Components:
It is made of 3 basic components. They are MACD line, 9 bar EMA or Signal line and the histogram.
The Basic Scenarios:
When 12 day EMA is above 26 day EMA MACD above zero line. When 12 day EMA is below 26 EMA MACD below zero line. When there is no difference between two moving averages MACD is at 0 line.
When MACD line is above EMA line markets are moving up. When MACD line is below EMA line markets are moving down.
ADS Securities brings you the latest Daily Fundamental Update for the February 27th in this video.
Beginning with the US session, the economic figures came in with mixed outcome yesterday.
1. US CPI MoM declined towards -0.68% which is the 3rd monthly decline in a row.
2. US Core CPI Mom increased towards 0.18% in January which is the biggest monthly increase since October 2014.
3. US CPI YoY declined towards -0.1% which is the first negative reading since 2009.
4. US Durable Goods Orders increased by 2.8% in January which is the biggest monthly increase since July 2014.
5. US Core Durable Goods Orders rose by 0.3% which is the first monthly increase since September 2014.
6. US Initial Jobless Claims spiked above 313K which is the biggest weekly increase since 8 weeks.
Looking at the Asian session today,
1. Japan Household Spending declined by -5.1% which is the biggest YoY decline since September 2014.
2. Japan Unemployment Rate saw a first increase in almost 4 months rising towards 3.6% which is the highest since September 2104.
3. Japan YoY Retail Sales came in with another disappointment declining by -2% which is the 1st and biggest decline since April 2014.
Hantec Markets brings you the latest technical analysis on the GBP/USD pair for the February 27th in this video.
GBP/USD — This chart is not as negative as the AUD/USD chart. The first real signal in this chart indicates bearishness that suggests caution about how we play this cable chart. We have MACD lines beginning to roll over slightly. Stochastics rolling over slightly and comin g below and RSI is still above 50 level. We have this bearish one day reversal which is a negative sign and we have reaction high from yesterday at 1.5552. We are still trading above the 1.53 figure which is the key support on this chart. Looking at the hourly chart we had a sharp correction we had yesterday and still being maintained today. Sterling looks like is building more to the downside. We are holding on to the 1.5330 support level. We are still ok as we are above the 1.53 level but this pair needs to be watched carefully at the moment.
ADS Securities brings you the latest Daily Fundamental Update for the February 26th in this video.
Beginning with the Asian session there were few economic releases across the session which had a little impact on both Aussie and Kiwi pairs.
1. The New Zealand Trade Balance came in at 56 million in January which is first surplus since June 2014.
2. Australia Capital Private Expenditure came in with another disappointment declining by -2.2% which is the 1st QoQ decline since Q1/2004.
The NZD advanced across the session against the US Dollar and continue to rise towards 0.7577. The Aussie also tumbled across the board declining the most against the British Pound however the upside is likely to continue in the next few days.
Looking at the European session,
1. Germany GFK Consumer Climate is expected to grow towards 9.6 in March.
2. Unemployment Change in Germany is expected to decline by -10K in February.
3. UK Second Estimate GDP to remain at 0.5% during the 4th quarter of last year which is the weakest growth since Q4 of 2013.
Looking at the US session there a collection of economic releases from US and Canada which are likely to be main driver of the markets.
l. Canada CPI MoM is expected to decline by -0.4% which is the 3rd monthly decline in a row.
2. Canada CPI YoY is expected to slow down towards 0.8% which is the lowest since October 2013.
3. US CPI MoM is expected to decline by -0.6% in January which is the 3rd monthly decline in a row.
4. US CPI YoY is expected to decline by -0.1% which is the first negative reading since the Financial crisis.
This video teaches you a Bollinger band trading strategy that you can apply to your trading. John Bollinger introduced the Bollinger band strategy 20 years ago and Bollinger bands became one of the most reliable technical indicators in Forex trading. It consists of a 20 period moving average and upper and lower bands are the standard deviations above and below the moving average. The bands move away from the moving average when volatility expands and move towards the moving average when volatility contracts. Additional indicator to be used for this strategy is called bandwidth indicator. The purpose of this indicator is to subtract the lower band value from the upper band.
The Squeeze Entry Strategy:
1. Based on expansion and contraction of volatility
2. When volatility decreases to 6 month low it typically reveses quickly.
3. When volatility begins rising it moves one way rapidly for short period of time.
The squeeze happens with the bandwidth making 6 month low. It does not matter what the actual number is because its relative only to the market that you are looking to trade. The 6 month bandwidth low typically precedes strong directional moves. This is the type of setup you want to monitor on a daily basis when using the bandwith indicator for squeeze setups.
The US Indices finished mixed as gains in the Oil and Gas, Telecommunication and Consumer services sector led shares higher while losses in the Utilitie and Technology sectors led shares lower. The Dow Jones rose by 0.08%, S&P 500 fell by 0.08% and NASDAQ lost 0.02% from its value. The US Dollar traded mostly low against most major currencies after downbeat US New Home Sales Data and AS Tuesday’s remarks by Federal Reserve Chair Janet Yellen continued to weigh. Today high volatility is expected as Unemployment Claims, CPI and Core CPI will be released. The Euro was almost unchanged against the dollar to close at 1.1364 in quiet trade on Wednesday as investors scaled back expectations on timing of US rate hike while lingering concerns over the conditions attached to Greece’s bailout extension also kept investors cautious. Today Private Loans is expected at -0.3% vs. -0.5^ and German Unemployment Change at -10Kvs. -9K previously. The Pound rose versus US Dollar to close at 1.5527 and today Second Estimate GDP report is expected to remain at 0.5%. Gold rose slightly yesterday to close at $1,205 an ounce and Crude oil rose by 3.77% to close at $51.06 a barrel.