Tag: Forex

Some of the world’s currencies are accepted for most international transactions. The most popular currencies are accepted for most international transactions are the U.S. dollar, the euro, and the yen. However, the U.S. dollar is the most popular. And in the foreign exchange market 90 of forex trading involves the U.S. dollar.  Thus, when assessing the relative strength of the most popular currencies in the world, it’s always against the U.S. dollar, using the daily time frame chart.

The “major” forex currency pairs are the major countries that are paired with the U.S. dollar (the nicknames of the majors are

10,000 Ft View – 4 Hr Chart

Here’s why I decided to pass on this trade set-up:

I don’t like all this trading in this range, a sign of equilibrium between sellers and buyers.

The origin of the move down (yellow) couldn’t take out the previous lows (purple).

As of result of price action not taking out the previous lows, the Reward to Risk was only 2:1. I’m looking for a minimum Reward to Risk of 3:1, but ideally a minimum of 5:1.

However, the trade is working out at the moment, if price gets pass the immediate demand (red rectangle), the

At an ECB Press Conference yesterday, President Mario Draghi was shy about possible further stimulus to prevent the region from slipping into recession.  He also talked about the additional risks to the EU if Trump moves forward with his tariffs on $11 billion worth of European Union goods.

Monetary Authority of Singapore measures the Singapore dollar against a basket of its counterparts, adjusting the pace of appreciation as necessary.  Its decisions to tighten policy last year were spurred by rising inflation, underpinned by an improving labour market and robust economic expansion.

The take away is the Singapore dollar will potentially strengthen, while

I have been trading Forex for the last 4 years.  One of the easiest pairs to trade is the USD/JPY.  If you want to know where it’s headed next, just pay attention to the S&P 500.  The Japanese Yen is a safe haven currencies, so if the S&P 500 is going up, it means a risk on environment and so the USD/JPY should go up.  If the S&P 500 is going down, it means a risk off environment and so the USD/JPY should go down.

Still, Street consensus favors a continued rally in the currency pair. According to RBC Capital Markets,

Speculators are betting heavily on a fall in the euro amid woeful economic data from Germany, its powerhouse nation.Hedge funds and other trading firms are short-selling £10.7 billion of euros, according to research by Goldman Sachs – meaning they make money if the value of the currency falls.The sum is £2 billion more than a week ago, suggesting investors are increasingly gloomy about the future prospects of the monetary union.

Source

Things will get worse for the Euro if Donald Trump moves forward with US tariffs on $11 billion of goods from the EU to due subsidies for Airbus, the European aerospace

British Pound and the Australian Dollar have been two of the best-performing currencies in 2019. 

Along with commodities, the Aussie is trying to stage a come back after declining 8% in 2018.  A US-China trade deal will surely send the Aussie higher, but if no deal is reached, be sure the Aussie will go lower.  

There is discussion that European Council President Donald Tusk will this week propose to European leaders they offer the UK a 12-month “flexible” Brexit delay.  If the proposal is granted, a “no deal” Brexit is back off the table and the British Pound should rise.

These

10,000 Ft View – 4 Hr Chart

What I like about this big picture price action is the following:

Lets zoom for a closer look at the trade set-up.

What I like is that you had all these filled orders in white, which shows balance, late last week, the chart is suggesting the sellers are now taking control as indicated by the breakdown below the pink rectangle.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Forex Price Action Baby, No Technicals or Fundamentals…Trade #9 – Sold EUR/CAD (3/6/19)

However, I was stopped out of the trade several hours later by one tick before price starting moving in my favor.

And price eventually hit my target.

Forex Price Action Baby, No Technicals or Fundamentals…Trade #7 – Bought USD/CAD (2/25/19)

I really must give my trades more of an opportunity to work out, as I’m risking only 10 pips and could have easily been stopped out. However, on the flip side, it means that my Reward to Risk are extremely high…if I can withstand the many stop outs. I’m sure

Perhaps, the Brexit insanity can best be encapsulated by a recent Reuters article, which reports that computers designed to trade on Brexit-related news have been flummoxed by the barrage of recent headlines that at times appear to be contradictory.The Reuters piece says that a portion of the roughly $5 trillion-a-day global currency that has been controlled by computers, which are modeled to watch for key words from media sites about the U.K.’s divorce from the EU and trade off of that information, are being whipsawed by thousands of daily headlines on the subject from the likes of Bloomberg, Reuters and

The infamous US March jobs report is scheduled for Friday at 8:30 am eastern time.   According to a MarketWatch article, they are expecting the GBPUSD and AUDSUD to react the most based on an unexpected numbers.“In the event the jobs and crucially wages data beat expectations, then we would favor looking for short-term bullish setups on the dollar against the likes of the British pound given the ongoing Brexit uncertainty in the U.K.,” wrote Matt Weller, currency analyst at Forex.com.Any upside in the greenback could be a double-whammy for sterling bears. Despite putting together three winning sessions to begin the