The Hammer Candlestick pattern is one of the most popular among traders as it signifies the end of a trend and a high posibility of a reversal. Variations of this include the Shooting star and they are both formed through the existence of resistance in the market. This pattern occurs for example in the daily chart when price reaches a new high or close to a previous high with powerful buyers attempting to push the price higher. This is intially successful with price rising dramatically however sellers enter the market believing the price is too high and unsustainable and a battle of bulls and bears ensues. The bulls begin to weaken throughout the day and the sellers take control of the price forcing it down to a close very near to its opening price. On a chart this candle appears to have a small body very close to the bottom of trading range for the day and a long wick where price has risen dramatically but has been pushed back down by sellers. The significance of this pattern shows traders that sellers are now in control of the price. The pattern represents an unsustainable level for price in the short term and a very high probability that it will retrace. Factors which increase the reliability of this pattern is the existence of long wick and a small body. Candlesticks are excellent trading indicators for those who like clean reliable chart signals. There are multiple patterns which can be interpreted to show future price action and these should be learnt by every trader as a foundation for understanding charts.
MBCFX brings you the latest technical analysis on the GBP/USD pair for the April 17th in this video.
GBP/USD — The GBP/USD extended gains after the release of positive UK economic data which indicated the improvement to the UK economy. Also the decrease of the Unemployment rate to 6.9%. Today the Investors main attention will turn to the Philadelphia Fed Manufacturing Index. This data will have great impact on the US Dollar and the Sterling as well. If the reading is below expectations it can push the GBP/USD higher. However if the reading is above expectations the GBP/USD will decline. As we have mentioned in our technical analysis of yesterday the GBP/USD rose significantly hitting all expected targets. Concerning the next trading session we expect the continuation of the bullish trend of the prices towards the upper line of the ascending trend around main level stated in our daily newsletters.
MBCFX brings you the latest technical analysis on the EUR/USD pair for the April 17th in this video.
EUR/USD — The Euro rose significantly against the US Dollar after the comments of the Fed President Janet Yellen yesterday who claimed the neccessity maintaining low Interest rates for a long time despite the slight improvement in th US economy. Yellen also said that the main target of the Monetary policy is expecting the Unemployment rate will decrease between 5.2% and 5.6%, also the Inflation rate to hit 1.7% and 2% by the end of 2016. Today’s main Investors attention will turn to initial Jobless claims and Philadelphi Fed Manufacturing Index. As we can see on the 1 hour chart the EUR/USD is trading within an ascending correction flag and yesterday the prices recovered slightly towards the upper line of the Bollinger bands at 1.3844. Today we expect a sideways trading of the EUR/USD around the main level stated in our daily newsletters.
The Wall Street finished the trading session in the green yesterday affected by Macro data and an optimistic speech by Federal reserve Chair Janet Yellen. The S&P 500 rose by 1.05%, Dow by 1% and Nasdaq added 1.30% to its value. The US Dollar remained unchanged against its major counterparts. The Industrial Production and Capacity Utilization Rate reports came out with good results. Today Unemployment Claims report is predicted to come out at 316,000 vs. 300,000 prior. Gold rose by 0.07% to close at $1,303 an ounce. Crude oil rose by 0.13% to close at $103.91 a barrel.
The Euro remained unchanged against the US Dollar even after worse than expected economic data in the Eurozone. The EUR/USD is trading above the support level of 1.38. The pair has been holding the bullish trend since the beginning of April and is expected to climb towards 1.3880 soon. Today the German PPI report is expected at 0.1%.
The Pound rose against the US Dollar after the Unemployment rate report came out better than expected at 6.9% which helped to strengthen the currency. The GBP/USD is trading above the strong resistance level of 1.68 and is expected to continue in this positive momentum to around 1.69. The pair is trading at its highest price ever.
The Canadian Dollar rose against the US Dollar. The USD/CAD is moving towards the support of 1.0970 but is expected to rise later on today towards the resistance of 1.1030. Breaching above this resistance could lead the pair to climb towards 1.11 level.
ADS Securities brings you the latest Daily Fundamental Update for the April 16th in this video.
Beginning with the US figures that were released yesterday, we have US Empire State Manufacturing Index drops to 4 month low at 1.29 in April down from 5.6, which is a disappointing figure. Furthermore NAHB Housing Market Index disappoints in April rising to 47, up from 46 in March.
As for the Asian session today there were a collection of economic figures from China and New Zealand. New Zealand Q1 CPI increased to 0.3% up from 0.1% in Q4 last year. China Q1 GDP slowed to 6 quarter low at 7.4%. China Industrial Production increased less than expected in March by 8.8%. China Fixed Asset Investment increased by 17.6% in March and China Retail Sales increased by 12.2% in March.
Looking at the European session the UK Claimant Count may decline by -30.2K in March and UK Unemployment Rate to stabilize at 7.2% in February. The Eurozone CPI set to stabilize at 0.5% in March.
Looking at US Session, the US Building Permits may decline to 1.00M in March and US Housing Starts may rise to 0.97M in March. US Industrial Production set to rise by 0.5% in March
MBCFX brings you the latest technical analysis on the GBP/USD pair for the April 16th in this video.
GBP/USD — The Sterling recovered reducing the losses of yesterday’s trading session. However the GBP/USD will remain in range trading ahead of UK major important data about the Labor market. The most important is the Claimant Count change for the month of March which is expected to record a decline of 30,000 compared to 34,600 during February. Also the Unemployment rate is expected to retreat to 7.1% compared to the previous reading of 7.2%. The mentioned data are very important as they will indicate the improvement of the British economy which will determine the next Monetary Policy of the Bank of England. As we can see on the 4 hour chart the GBP/USD has succeeded to breakthrough the descending correction flag to the upside and recovered hitting 1.6770. Today we expect further rise of the prices towards the main targets stated in our daily newsletters.
MBCFX brings you the latest technical analysis on the EUR/USD pair for the April 16th in this video.
EUR/USD — The European Stocks opened today following the release of Chinese economic data showed that Chinese GDP grew by 7.4% in the quarter of 2014 compared with the same period last year. As a result the EUR/USD recovered slightly reducing the heavy losses of the previous session. As the Euro fell sharply yesterday against the US Dollar after the release of better than expected US Inflation data for the 1st quarter of this year. The major news to watch today is the European Consumer Price Index CPI. On the other hand the US economy is expected to announce a number of new Building Permits and the Fed President Janet Yellen speech due today later. As we have mentioned in our technical analysis of yesterday, the EUR/USD declined towards 1.3789 and then bounced up towards 1.3830 and as we can see on the 4 hour chart the prices broke through the Fibonacci level of 50% and we expect further rise of the pair towards the main targets stated in our daily newsletters.
The US Indices were very volatile yesterday. The trading day closed with gains after several companies announced better than expected quarterly returns. The S&P 500 rose by 0.66%, Nasdaq by 0.385 and Dow added 0.55% to its value. Technically according to 1 hour chart the Dow has crossed above the 50% Fibonacci retracement level at 16,160 and maintaining this will retain the bullish momentum for the index. Gold fell by almost 2% after US Consumer Price Index came out better than expected. Crude oil has been trading between $103 support level and $104 resistance level.
The Euro finished the day unchanged against the US Dollar following a mixed economic sentiment report. The EUR/USD is maintaining support at 1.3788 and now trading around 1.3815. Today the CPI and Core CPI are expected and better than expected results could push the pair higher. Breaching above 1.3850 may cause another jump for the pair to around 1.39. However worse than expected data could send the pair down to 1.3750. A worse than expected data could send the pair to around 1.3750.
The Pound experienced a lot of volatility durng the day only to finish unchanged following the release of mixed economic data. The CPI report came out unchanged at 1.6%. The GBP/USD has strong support at 1.67 and maintaining this may push the pair towards 1.68. Crossing below this support will cause a drop to 1.66. Today the Unemployment rate is expected unchanged at 7.2%.
The Canadian Dollar rose after the Manufacturing Sales came out better than expected only to fall later in the day with the rise in the US Dollar. The USD/CAD is trading in an ascending channel. Resistance is at 1.1020 and breaching this could lead the pair towards 1.1050. Crossing below the support of 1.0945 will halt the ascending channel with a drop to around 1.0860. Today Overnight rate is expected to be unchanged at 1.00%. Expect volatility today after the release of BOC Monetary Policy Report and BOC Rate statement.
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ADS Securities brings you the latest Daily Fundamental Update for the April 15th in this video.
Beginning with the Asian session there were few economic datasets in addition to RBA Meeting Minutes which had noteable impact on Markets. In China, New Loans came in better than expected to 1050B Yuan in March up from 645B Yuan in February. The Reserve Bank of Australia dovish remarks sent AUD/USD below 0.9400 as the bank warned that weak mininig investment in addition to lower domestic demand is likely to curb growth. In addition to that also the bank saw further signs that lower rates supporting domestic activities however the bank also showed some positive remarks on Labor market. And the recent economic indicators have also been positive. The AUD/USD continued to decline further to 0.9386.
Looking at the European session, in Germany and Switzerland the PPP is set to rise by 0.3% in March after a decline of 0.4% in February. The UK Inflation is likely to ease back further with Year on year CPI may ease back to 1.6% in March and UK PPI Input may decline by 0.1% in March. The UK House Price Index may rise by 7.2% in February comparing to 6.8% in January. The Eurozone Trade Balance surplus may rise to 13.9B in February up from 13.7B in January. The German ZEW Economic Sentiment will be released today and is set to decline to 46.3 in April. The Eurozone ZEW Economic Sentiment is expected to decline back to 60.7 in April.
Looking at the US Session, Canada Manufacturing Sales is expected to rise by 1.1% in February. US CPI and Core CPI may rise by 0.1% in March. Disappointing Inflation figures increased the pressure on Fed to pause QE tapering. US Empire State Manufacturing Index set to rise to 8.2 in April and NAHB Housing Market Index may rise to 50 in April. The Fed Chair Janet Yellen to speak at 12:45 GMT+.