MBCFX brings you the latest technical analysis on the GBP/USD pair for the April 22nd in this video.
GBP/USD — The US Dollar has maintained a stable performance and remained higher against the major currencies during the last period amid improvement of US economic recovery. Also significant improvement of US economic data and the strong Dollar was amid the absence of confidence in the rest of world economies which has decreased the demand for the currencies of these countries to lose its strength against the continued recovery of the Pound Sterling. As we can see on the 4 hour chart the GBP/USD remained within sideways trading around 1.68 level and we expect further recover of the cable towards the main targets stated in our daily newsletters.
MBCFX brings you the latest technical analysis on the GBP/USD pair for the April 22nd in this video.
ADS Securities brings you the latest Daily Fundamental Update for the April 22nd in this video.
Today there are few economic releases across the sessions which may lead to further tight range along the day. Beginning with Asian session today there were only one dataset from Australia. Australia’s CB Loading Index increased by 0.3% in February comparing to a rise of 0.2% in January. The AUD/USD breaks above 0.9359. During the European session today there are no economic releases while all eyes will be headed towards US session due to some key figures.
In the Eurozone Consumer Confidence Index may stabilize at -9 in April. US Existing Home Sales may decline to 4.57M in March. US Richmond Manufacturing Index may come in unchanged in April
MBCFX brings you the latest technical analysis on the EUR/USD pair for the April 22nd in this video.
EUR/USD — The EUR/USD pair steadied around 1.38 level in quiet holiday trading sessions. The lack of liquidity is attributed to long easter weekend. Major European markets remained closed on Monday. The single currency will remain under selling pressure ahead of European Central Bank President Mario Draghi speech in Amsterdam on Thursday. He recently expressed concerns over a strong Euro in absence of major economic data from Eurozone. The existing Home Sales data in US constitutes the important to watch today. The EUR/USD bounced back below the Fibonacci level of 23.6% which indicates the enter of the price within the downward correction step. Also the pair broke through the ascending channel to the downside to finish its pullback step and will open the door for further decline of the EUR/USD towards the main levels stated in our daily newsletters.
The US Indices finished Monday’s trading in the green with Nasdaq adding 0.72% to its value and Dow adding 0.25%. This was the 5th positive day in a row for Wall street with several companies showing strong earnings report. Trading volume was very low due to Easter holiday break. S&P 500 rose by 0.38%. Technically according to daily chart, Gold is creating a W pattern or double bottom with support at $1,275 and resistance at$1,390. As long as gold is trading above support it might complete this pattern and hit resistance level within a month.
The Euro fell versus other major currencies as banks were closed for the Easter break and trading volume was very low. The EUR/USD is at 50% Fibonacci retracement level. Should the pair maintain this support level it may rise towards 1.3820, while crossing below it at 1.3870 may take it to 1.3760.
The Pound finished the trading day unchanged versus US Dollar as British banks were also closed for Easter. The GBP/USD is in a bullish momentum supported by bullish trend line on 8 hour chart. No economic data is expected today. The Japanese Yen fell against its major counterparts as Japanese Trade Balance came out lower than forecast. The USD/JPY has created a symmetrical triangle pattern with resistance at 103 and support at 101.50. Should the pair breach the resistance level it may rise to 103.75. However crossing below the support may take it back to 101.
Unlike trending markets, non trending markets generally do not exibit a clear overall moveement in one direction or the
other. Depending on how Exchange rates move within non trending markets they can be characterized as follows.
1. Ranging — When Exchange rates moves between the upper and lower boundary
2. Choppy — When the market moves up and and down erratically
3. Sideways — When trading is relatively calm and the Exchange rate is stable
4. Consolidating — When the Exchange rate trades in a progressively narrower range.
5. Expanding — When the rate trades in a progressivel wider range.
MBCFX brings you the latest technical analysis on the GBP/USD pair for the April 21st in this video.
GBP/USD — The Sterling continues to rebound against the US Dollar supported by the decline of the UK Unemployment rate and the pair has offset the losses which incurred during the beginning of last week. Due to the release of consecutive positive economic data from the US supporting the largest economy in the world, the cable is expected to continue its bullish trend ahead of Monetary Policy meeting of Bank of England on Wednesday as well as the release of UK Retail Sales index due on Thursday. Today we expect thin trading due to lack of liquidity as most of major world markets are closed to celebrate the Easter holiday which lasted for 3 days. As we can see on the daily chart the GBP/USD is trading within an ascending channel and the pair has rebounded towards the upper line of the Bollinger bands above 1.68 level and during this week we expect further recover of the cable towards the main targets stated in our daily newsletters.
MBCFX brings you the latest technical analysis on the EUR/USD pair for the April 21st in this video.
EUR/USD — The EUR/USD prices have little changed due to low liquidity caused by Easter weekend. Major European markets will remain closed today as well. Upbeat US data has pushed the US 10 year Bond yields up and consequently increasing the appeal for US Dollar. Given the latest ECB offiicials concerns regarding how strong Euro will be negative on the Inflation. So any rally of the single currency will be capped. As we can see on the 1 hour chart the EUR/USD is making sideways trading between 1.3826 and 1.3809 levels, after the breakthrough the ascending correction flag to the downside. Today we expect the pair will continue its decline towards the main targets stated in our daily newsletters.
As you may know technical analysis i used by most successful Forex traders and among them is Stochastic oscillators. Traders use technical analysis because they are mentally unable to identify trends and patterns in the realtime in the Forex markets due to large number of trades that take place every minute. As you may know its one of the largest Financial markets in the world. One of the key things to identify is to identify support and resistance and other indicator you need to know is the momentum indicator.
Stochastic oscillator was first invented by George Lane in 1950s. This momentum indicator measures current price of a currency in relation to its range over a defined period of time. The goal is to predict the point at which the price of the curreny to either increase or decrease, by comparing it to previous trading range. This indicator will tell you when to enter and when to exit the market for maximising profit. There are three types of this oscillator — Full, Fast and Slow Stochastics. They are one of the main technical analysis tool in identifying trends in Forex market. Stochastic oscillator are most profitable when used in conjunction with other types of technical analysis.
Triangles are drawn on charts for traders to visually determine a point where the market could contract and expand in to a greater move. Drawing a diagonal line between the highs and between the lows will give the shape of the triangle which traders adhere to. Triangles are powerful patterns recognised by technical analysts to determine a strong future price movement. When triangle forms in a chart, they have a potential to move in either way. They generally have two formations and frequently result in price moving quickly as the pressure is released. If they occur over a significant period of time the final move can be exaggerated as the pressure is released from the market.
Symmetric triangles seem to be near perfect triangles which point like an arrow to the right of the chart. Over a period of time price begins to make higher lows and lower highs and price getting squeezed into a narrower and narrower range as it bounces of support and resistance of buyers and sellers. Eventually when the pressure is almost at bursting point price shoots off in either direction.
Asymmetric triangle consists of one horizontal side and one diagonal side. There are two types, ascending and descending. They appear almost like wedge and occur frequently in trending markets. They are formed when price hits either an area of support or resistance.
When it comes to Forex trading most forms of Market related Risk management have to do with setting stop-loss orders on existing trading positions. Taking losses or remembering to cut your losses short as the trading adage advises is a key element of Risk management that needs to be done with a great deal of discipline and as planned even before entering in to a trade. In particular traders are encouraged to incorporate an element of risk management into the trading procedure by determining stop loss levels in advance. They then need to either watch those levels closely or place a stoploss order with the broker when watching stoplevels themselves as inconvenient.
Perhaps the most common cause of excessive trading losses has to do with either failing to enter a stoploss order or pulling a stoploss order once it was entered as the market began to approach it. Its an entirely appropriate and sensible emotion for a trader to fear losing more money but it is not nearly as appropriate for them to have hope they will ever make their losses back.