Edge Forex

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  • EUR/USD Weekly Forecast

    EUR/USD Weekly Forecast

    #edgeforex #trading #market #stocks #money #forex #trader #inflation #dollar #gold #india #eur #ecb #jobs #weekly #cryprocurrency #bitcoin weekly

    Christine Lagarde, President of the European Central Bank, startled market participants by taking a hawkish position. 

    The United States added 467,500 new jobs in January, well above market estimates. 

    If EUR/USD falls below 1.1400, it will be difficult to prolong its recent surge. 

    The EUR/USD pair gained the most pips in a week since March 2020, gaining around 350 pips to reach a new 2022 high of 1.1483, and is presently trading around 1.1430. Following the European Central Bank’s monetary policy meeting, President Christine Lagarde startled market participants with her hawkish tone, despite the delivery of a modestly dovish statement.

    The record inflation reached in January was noted by Lagarde & Co. According to Eurostat, consumer prices in the eurozone grew by a record 5.1 percent year on year, above the 4.4 percent predicted and exceeding the 5 percent figure in December. The early estimate for German inflation in the same time was 4.9 percent, which was also significantly higher than the market’s forecasts.

    The ECB’s hawkishness is masked by the optimistic US NFP.

    The central bank’s February announcement matched the one issued in December, promising unchanged interest rates and the conclusion of PEPP purchases in March. The ECB maintained that it will increase purchases under the APP programme, which will begin to decline in October. It’s worth noticing that policymakers omitted the phrase “in either direction” from the statement about being willing to alter monetary policy as appropriate. 

    President Lagarde, on the other hand, made her most hawkish comment to date. Not only did she voice rational concerns about rising inflationary pressures, noting that “compared with our views in December, risks to the inflation outlook are weighted to the upside, particularly in the short term,” but she also avoided indicating that a rate rise this year is improbable.

    Market participants hurried to price in a rate rise before the end of 2022. 

    As a result, government bond yields have skyrocketed. The German 2-year bund yield increased by more than 30 basis points this week, the largest increase in almost a decade, while the US 2-year Treasury rate surpassed 1.20 percent. Longer-term bond rates rose as well, but not enough to boost demand for the US dollar.

    Macro data has ups and downs.

    Across the pond, employment-related statistics from the United States weighed on the dollar in the middle of the week. The ADP poll of private job creation revealed a 301K loss, well above the 207K new positions predicted. Q4 Unit Labor Cost increased by 0.3 percent, significantly below the previous 9.3 percent and the 1.5 percent projected, while Nonfarm Productivity increased by 6.6 percent, above forecasts. 

    The US dollar recovered on Friday with the release of the January Nonfarm Payrolls data. Investors were expecting a mediocre result, but the US added 467K new jobs, more than double the projected 150K. The unemployment rate increased to 4%, but the participation rate increased to 62.2 percent, indicating a robust recovery in the industry.

    The Nonfarm Payrolls report came to remind market participants of the US Federal Reserve’s hawkish posture, which significantly outweighed Lagarde’s statements. 

    Other macroeconomic data released recently revealed that major countries are still failing to recover to pre-pandemic levels of growth. The first estimate of the EU Q4 GDP came in at 0.3 percent QoQ, as predicted, significantly lower than the final Q3 figure of 2.3 percent. Retail sales in the Union fell unexpectedly by 3.0 percent month on month, as Markit revised its January PMI estimates downward. German data experienced the same fate, despite the fact that Factory Orders in the nation increased by 2.8 percent month on month in December.

    The US will publish the final estimate of the January Consumer Price Index and the preliminary estimate of the February Michigan Consumer Sentiment Index this week, but there will be no macroeconomic disclosures. Germany will also release the final reading of its January consumer price index.

  •  ‘Shiberse’ Shiba Inu announces entry into its own Metaverse

     ‘Shiberse’ Shiba Inu announces entry into its own Metaverse

    #edgeforex #trading #market #stocks #money #forex #trader #nft #art #buyer #metaverse #shiba #shiberse #digital #cryprocurrency #bitcoin

    Shiba Inu (SHIB) creators teased their metaverse project on Monday, uploading a picture of their own digital world “shiberse” on Twitter, causing the meme cryptocurrency’s price to rise. SHIB began as a’meme,’ but it is no longer a joke. SHIB’s value rose in 2021 after being inspired by a dog meme and portrayed as a ‘Dogecoin killer,’ and SHIB creators hope to shed the’memecoin’ moniker with the creation of its own metaverse. 

    Since Meta (Facebook) revealed the notion of digital universe in October, several IT titans have invested in the concept of metaverse. For those who are unfamiliar, the metaverse is based on the notion of embodied internet, which merges real and virtual worlds more than ever before.

    Shiba Inu’s declaration comes in the midst of the cryptocurrency market’s downfall. However, following the news, SHIB recovered together with other altcoins as part of a broader crypto recovery. It was last up 9%, marking the first advance in three days. 

    What exactly is the ‘Shiberse’? 

    Shiberse will provide users with an immersive experience in the metaverse. The advertisement depicts a Shiba Inu dog in the middle of a forest, holding a hammer in its teeth. Shiberse would be the first of the year’s releases from Shiba Inu’s aspirations to develop its ever-growing and expanding ecology. It has also announced agreements that will see the initiative enter the GameFi and non-fungible-tokens markets (NFTs).

    As of now, very little information regarding the Shiberse idea is accessible; however, the SHIB team on Twitter has said that additional details about the project would be released in the near future. 

    In a blog post published in November of last year, developer Shytoshi Kusama hailed the SHIB team’s intentions for a metaverse. “I think that in order for a’metaverse’ to be more than a twisted infinity sign and a mechanism to collect your data, it must deliver genuine value to consumers, and doing so necessitates a specific foundation that is constructed prior to the introduction of the technology,” Kusama wrote. 

    Shibarium powers the ‘Shibverse.’ 

    SHIB has announced the establishment of its own Blockchain, Shibarium.

     Blockchain technology is suited to the metaverse because it offers a transparent and cost-effective alternative. And Bitcoin in general fits right in with the concept of the metaverse. 

    After all, crypto is fully decoupled from real-world fiat currencies, both in terms of value and physical form, making it an ideal medium of payment and transaction in the virtual world. 

    Shibarium is intended to offer additional features to SHIB customers, such as lower gas expenses. The gas charge, which is paid to process and confirm transactions in a crypto environment, has become a major issue for the blockchain. 

  • Czechs own twice as much gold as the Czech National Bank.

    Czechs own twice as much gold as the Czech National Bank.

    #edgeforex #trading #market #big #misses #money #forex #trader #rate #gold #household #czechs #large #cryprocurrency #bitcoin czechs

    Private home gold holdings in the Czech Republic are twice as large as the Czech National Bank’s gold reserves. 

    Private persons in the Czech Republic presently hold 19.35 tonnes of gold, according to government figures. This is more than twice the quantity of gold housed in the vaults of the Czech National Bank, which stood at 10.6 tonnes at the end of 2021. In affluent nations, such disparities are extremely prevalent. 

    German homeowners, for example, possess more than 9,000 tonnes of gold, while the Bundesbank has 3,362 tonnes. In Italy, 6,418 tonnes of gold are privately owned, compared to 2,452 tonnes owned by the Central Bank, while 4,714 tonnes of gold are privately owned in France, compared to 2,436 tonnes in the bank.

    Gold, according to the Czech National Bank, is not an ideal medium for modern central banks to retain foreign exchange reserves. 

    Gold has no practical use for the central bank’s monetary policy and does not function as foreign currency reserves in the true meaning of the term. 

    Foreign exchange reserves are unique in that they can be purchased or traded at any moment. Gold is insufficiently liquid, its value is very erratic, and its operational costs are expensive. 

    In 2021, the Czech National Bank acquired 1.25 tonnes of gold for its foreign exchange reserves four times. However, after subtracting gold utilised in the creation of gold coins, net purchases amounted to 777.5 kilos.

    In 2020, the central bank began its gold purchases, purchasing around 1,835 kg. He noted that the trend of rising gold holdings in the central bank’s vaults in recent years is clear. 

    Since 2009, the Czech Statistical Office has started tracking the quantity of gold imported into the Czech Republic. Total imports of the precious metal in different forms – from gold dust for the electrical sector to semi-finished items such as plates, sheets, and wires for the jewellery industry – reached at 73 tonnes at the end of November last year.

  • Crude Oil Soars to New Heights 

    Crude Oil Soars to New Heights 

    #edgeforex #trading #market #big #misses #money #forex #trader #price #rate #financial #crude #oil #demand #variables #cryprocurrency #bitcoin crude

    • Crude oil prices rise as supply and demand variables clash;
    • Supply concerns persist as OPEC+ fails to produce; and 
    • Energy demand rises as the northern winter approaches. Will WTI continue to rise? 
    • Crude oil extended its gains from last week in Asian trade on Monday. With storms building in the northern hemisphere, geopolitical worries, supply limits, and option hedging all in play, the energy commodity looks to have few options for the time being. 
    • Tensions near the Ukraine-Russia border continue to grow as Moscow sends additional troops to the region. A dispute in this region threatens European energy sources and has heightened global oil supply concerns.
    • The Pentagon has declassified a number of military intelligence records revealing the development of armaments. They have also alluded to a misinformation campaign within Ukraine that they claim was sponsored by Russia. 
    • In recent weeks, a number of analysts and journalists have predicted that oil prices will rise over $100 per barrel. With OPEC+ failing to deliver on its recent output hikes in full, their projections are approaching. 
    • OPEC+ is expected to meet on Wednesday to discuss output objectives. 
    • Above $90 bbl, option underwriters may begin to hedge their risk. According to Bloomberg statistics, the number of calls issued substantially outnumbers the number of puts over $90 bbl.
    • As the price of oil rises, more people will buy it. Once the price has passed through certain criteria and the options have been hedged, if the price falls, the hedging of these options will cause those same purchasers to sell. This might raise the price much more.

    Crude oil technical analysis

    On Friday, WTI crude oil reached its highest level since October 2014. 

    The upward movement has bumped up against the Bollinger Band based on the 21-day simple moving average (SMA), but it has been unable to close outside of the upper band. This might imply that the market is satisfied with the rate of change in the rally. 

    On the upside, resistance might be found at the most recent prior high of 88.84. 

    The 10-day simple moving average (SMA) is trading slightly above a previous pivot point at 85.90, suggesting that it may provide support. 

    Previous lows and pivot points of 81.90, 79.33, 77.44, 74.96, 74.76, and 73.34 may also be useful.

  • Should Investors Worry About Fed Rate Increases?

    Should Investors Worry About Fed Rate Increases?

    #edgeforex #trading #market #big #misses #money #forex #trader #broker #price #investors #worry #rate #financial #ark #cryprocurrency #bitcoin investors

    The possibility of the Federal Reserve rate rises continues to frighten Wall Street and cast a pall over the precious metals market. 

    The Fed firmly hinted on Wednesday that it will raise its benchmark Fed funds rate for the first time in three years, most likely at its March policy meeting. 

    Policymakers stated that inflation is a “far over” goal and that a “strong labour market” justified some monetary tightening. 

    “There’s a lot of space to raise interest rates without endangering the job market,” Fed Chairman Jerome Powell said, adding that “wages are rising at the fastest rate in decades.” 

    When fact-checked, it turns out to be mainly untrue.

    Overall, price inflation is at its fastest rate in decades. Wages, like everything else in the economy that is vulnerable to inflationary pressures, have undoubtedly been growing in nominal terms. 

    Wages, on the other hand, are falling behind in real terms. The Labor Department announced earlier this month that when adjusted for buying power, average hourly wages for all employees fell 2.4% year on year through December. 

    In other words, salaries aren’t keeping up with inflation, even when measured by the government’s manipulated Consumer Price Index, which is now rising at a 7% rate. 

    Officials in Washington who say the economy is improving just do not understand (or, in many cases, are deliberately misleading).

    Ordinary Americans, on the other hand, get it. They are well aware that they are losing ground to inflation. 

    According to an NBC News study, 61% of Americans believe their family income is slipping behind their living expenses. Only 7% believe their salary is growing faster than inflation. 

    Furthermore, 72% of Americans believe the country is heading on the wrong path. That is one of the most pessimistic social mood assessments ever recorded in the history of polling. 

    The tiny number of prosperous elites is becoming restless as a result of the recent dramatic drop in stock prices. 

    Some investors believed that the recent stock market sell-off would compel the Fed to adopt a more dovish stance.

    In recent years, Wall Street outbursts have prompted the Fed to ease up on tightening and unleash additional stimulus. 

    However, the present spread between inflation and the Fed funds rate is the widest on record. Central bankers would lose whatever “inflation-fighting” credibility they still had if they did not begin raising interest rates this year. 

    However, a single rate rise – or even multiple rate hikes – would not represent a fundamental shift away from the Fed’s current lax monetary policy. To be “tight” in any meaningful sense, officials would have to be prepared to raise nominal rates above and above the inflation rate (7% or higher).

    In recent years, Wall Street outbursts have prompted the central bank to ease up on tightening and unleash additional stimulus. 

    However, the present difference between inflation and the Fed funds rate is the widest on record. Central bankers would lose whatever “inflation-fighting” credibility they still had if they did not begin raising interest rates this year. 

    However, a single rate rise — or even multiple rate hikes – would not represent a fundamental shift away from loose monetary policy. To be “tight” in any meaningful sense, officials would have to be prepared to raise nominal rates above and above the inflation rate (7 percent+).

    For a long time, the stock market has been the principal beneficiary of the Fed’s excessive monetary creation. However, there are rising indications that this year will be a watershed moment. 

    The high-flying innovation-themed equities were the first to fall into bear markets. 

    The small-cap Russell 2000 stocks then lost all of their gains from the previous year. 

    When assessed against genuine assets like as gold, the S&P 500 and Dow Jones Industrials might go from correction to collapse. 

    Despite the fact that gold and silver have yet to show large gains in this climate, they have outperformed the stock market so far this year.

    Against the backdrop of rising inflation and a fundamentally unfavourable social attitude, this embryonic tendency may have legs. When combined with consistently low real interest rates, it’s a near-ideal setting for a huge precious metals bull market to unfold. 

    Although there may be possible barriers ahead for gold and silver investors, the Federal Reserve is unlikely to be one of them very soon. The early phases of a Fed-hiking campaign have historically been good for precious metals price gains. 

    The main message is that investors who have a strong holding in hard assets should not be concerned about the Fed. Those who rely only on dollar-denominated financial assets, on the other hand, should be extremely concerned.

  • Forex News January 29, 2022

    Forex News January 29, 2022

    #edgeforex #trading #market #money #forex #countries #dollar #currency #pairs #indices #pound #fed #trade #crypto #bitcoin indices

     Indices

    • The three main indices end the week higher.
    • The Nasdaq ends little higher, but that’s good enough for a positive week.
    • The three major indices (Dow, S&P, and Nasdaq) rode a wave of purchasing higher on the day, finished at highs, and reversed the week’s losses.
    • The Dow, S&P, and Nasdaq all had their best day of the year
    • The Dow and S&P posted their first weekly gains in four weeks
    • The NASDAQ posted its first weekly gain in five weeks
    • Dow industrial average rose 564.67 points or 1.65 percent to 34725.46
    • S&P index rose 105.36 points or 2.44 percent to 4431.86
    • NASDAQ index rose 417.80 points or 3.13 percent to 13770.58
    • The Russell 2000 increased by 37.22 points, or 1.93 percent, to 1968.51
    • The Dow industrial average gained 1.34 percent for the week.
    • The S&P 500 index increased by 0.77 percent.
    • The NASDAQ index gained 0.01 percent (good enough to have its first weekly gain in five weeks)
    • The Russell 2000 finished last week at 1987.91 and is currently trading at 1968.51. It plummeted 19.4 points, or 0.97 percent, for the week.
    • The small-cap index is still down 19.4 percent from its November 8 peak closing. However, today’s low price of 1901.35 came within 12 points of the 38.2 percent retracement of the run up from the March 2020 bottom before rebounding higher.

    EURUSD

    • Dip buyers can’t lift the EURUSD any higher from its lows. Sellers retain control until the transaction is completed.
    • The EURUSD is expected to maintain its negative tendency throughout the weekend.
    • According to the four-hour chart above, the pair dipped below the 2021 low (from November) during yesterday’s trade at 1.11853. The corrective advance from today’s low of 11207 could only reach a high of 1.1173 before reversing to the downside. The current price is 1.11413.
    • Unless and until the market can rise above that level and then reach the 38.2 percent retracement of the move down from the Wednesday swing high at 1.1193, the sellers will stay in solid control.
    • Move above, and there would still be more work to be done, but the purchasers would have had some corrective success to the upside.
    •  The next negative objective is the 1.1100 level, followed by a swing range between 1.09806 and 1.1018 if there is additional selling in the next trading week.

    US stocks

    • The wobble in the previous hour has been eliminated
    • The volatility in markets has continued. There was an air pocket in US stocks an hour ago, but they soon rallied, and the S&P 500 is currently at the day’s highs, up 64 points to 4390.
  • The ARK Innovation ETF

    The ARK Innovation ETF

    #edgeforex #trading #market #big #misses #money #forex #trader #broker #price #financial #ark #cryprocurrency #bitcoin

    The ARK Innovation ETF, the flagship exchange-traded fund (ETF) of ARK Invest CEO Cathie Wood, just reached an intriguing moment. In terms of performance over the last two years, it has fallen short of the Nasdaq Composite. The ARK Innovation ETF, which more than doubled in 2020, is now down 54% from its all-time high, while the Nasdaq is down 15% from its all-time high. Furthermore, as of this writing, the ARK Innovation ETF is lagging the Nasdaq Composite by around 24 percentage points over the most recent three-year period.

    Big Misses

    Only one of the top ten holdings in the ARK Innovation ETF – Tesla – had outperformed the Nasdaq in the previous year as of Jan. 13. The top ten holdings account for 54% of the ARK Innovation ETF. 

    Tesla, Zoom Video Communications, Teladoc Health, Roku, Coinbase Global, Unity Software, Spotify Technology, Exact Sciences, Twilio, and Block are among them. Coinbase is not included in the one-year chart below since it went public in April 2021; it has fallen nearly 30% since then. 

    The majority of the top ten holdings are unprofitable or slightly profitable growth businesses that grew significantly at the pandemic’s peak in 2020.

    However, by 2021, many of these growth brands had been abandoned by investors, who preferred a philosophy of growth at a fair price over growth at any price. 

    Consider that the top ten biggest S&P 500 components as of the end of 2021 gained about 50% on average in 2021. These are large corporations such as Apple, Microsoft, Alphabet, and other well-known technology names that are also extremely lucrative. 

    In the near term, ARK’s plan isn’t working. 

    It would have been extremely difficult to outperform the market in 2021 if you did not possess the top ten stocks in the S&P 500, given that these businesses provided the majority of the index’s gains. However, investing in a large tech stock is not ARK’s investment strategy.

    Rather, it seeks paradigm-shifting growth equities with huge potential that have the ability to transform sectors over the next few decades. 

    ARK’s method works best when investor optimism and patience are high – and interest rates are low – since such conditions favour the sorts of firms in which its funds invest. Investors have also grown tired of certain of the funds’ components. Meanwhile, the Federal Reserve is now projected to begin raising interest rates as early as March, with three to four rate rises expected this year. Rising interest rates and stricter monetary policy are significant challenges for growth firms that already have high price-to-sales ratios. Many of ARK’s assets must demonstrate persistent strong growth to justify their values.

    That’s a more difficult challenge to achieve when borrowing money is more expensive – and labour and product prices are rising due to inflation. 

    Given all that investors are considering, as well as a bigger proportion of smaller, unprofitable growth businesses relative to the Nasdaq Composite, it’s not unexpected that the ARK Innovation ETF has slid from outperforming to underperforming the Nasdaq.

    Lessons Learnt 

    The troubles of the ARK Innovation ETF demonstrate how difficult it may be to outperform the stock market. However, they also demonstrate how themes may shift from popular to unpopular in an instant owing to reasons outside a company’s control. 

    You may argue that the value of companies like Zoom or Roku should not be significantly different now than it was a year ago. Despite the fact that the economy has reopened, both firms (and the sectors they are a part of) continue to develop at amazing rates, albeit at a slower pace than the record-breaking pace established in 2020. The long-term investing thesis hasn’t altered, but Wall Street’s perception of these firms has.

    Similarly, investors have altered their thoughts about oil and gas companies, which have gone from the worst-performing sector to the best-performing sector in 2021. And the energy industry has already increased by more than 10% in 2022. 

    The lesson here is that attempting to get into “what’s working” in the market and sell what isn’t is typically a recipe for disaster. Investing in excellent firms that you understand, believe in, and are comfortable retaining through good and bad times, on the other hand, allows your investments to compound over time. However, if your investment thesis changes, such as the firm losing its competitive edge or new technology rendering its products or services outdated, it may be time to sell.

    For many investors, the risk-reward profile of many of Wood’s recommendations is just too severe to make them staple assets in a portfolio they are comfortable owning. 

    However, if you believe in the firms represented by the ARK Innovation ETF and can stomach the volatility, a decline in its price might represent an excellent chance to purchase.

  • The US dollar is surging as the Federal Reserve prepares to raise interest rates.

    The US dollar is surging as the Federal Reserve prepares to raise interest rates.

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #uncertainity #dollar #surging #raise #inflation #bitcoin surging

    The US dollar was surging against major rivals on Thursday, adding to gains made the day before after Federal Reserve Chairman Jerome Powell declined several opportunities during a news conference to downplay the prospect of aggressive interest rate hikes and other measures aimed at bringing inflation under control. 

    The ICE US Dollar Index DXY, -0.06 percent, which measures the currency against a basket of six major competitors, increased 1.3 percent to 97.24, reaching a high not seen since mid-2020. Following a slow start, the index is blazing in 2022, up 2.3 percent so far in January. 

    The dollar has risen in tandem with a rise in short-term Treasury rates, which are more susceptible to Fed rate predictions.

    On Thursday, the yield on the 2-year Treasury note TMUBMUSD02Y, 1.176 percent, rose roughly 10 basis points to around 1.171 percent, while fed-funds futures showed traders pencilling in more aggressive rate-hike forecasts. 

    With all eyes on the Fed, the dollar has further opportunity to rise as traders increase their expectations of how far policymakers would eventually raise the fed-funds rate. Investors are expecting a so-called terminal rate of less than 2%, or around 75 basis points less tightening than the Fed offered when the dollar peaked in late 2016. 

    With Fed policy at the forefront, the dollar has opportunity to appreciate as market players price in a higher terminal rate, implying that the currency is nearing the end of its uptrend.

    As the global economy recovers from the worst of the COVID pandemic this year, market attention will shift to monetary policy normalisation and growth outside the United States, with the best currency returns in the second half of this year likely to come from countries other than the major developed economies. 

    Meanwhile, the dollar’s rise was causing rippling effects in other markets, including a drop in gold futures GC00, -0.50 percent and a pullback in oil futures CL00, 2.15 percent from levels last seen in 2014.

    Meanwhile, stock market investors were grappling with expectations surrounding the Fed’s policy path and economic data, with U.S. equities jumping higher in early trade Thursday, but in keeping with recent choppy trading action, trimmed or gave up strong gains in afternoon action, with the Dow Jones Industrial Average DJIA, -0.60 percent clinging to a gain of 78 points, or 0.2 percent, while the S&P 500 SPX, -0.41 percent edged down 0.1

  • Forex News January 28, 2022

    Forex News January 28, 2022

    #edgeforex #trading #market #money #forex #countries #dollar #currency #pairs #currencies #british #pound #hawkish #fed #trade #crypto #bitcoin british

    Currencies

    NZD/USD

    • NZD/USD is under pressure, with a sixth straight daily loss looming.
    • No respite for the NZD/USD following the fall below 0.6700 • The collapse below 0.6700 last week was a key factor in driving the recent drops in the NZD/USD, but the stronger dollar and more hawkish Fed undoubtedly amplified that mood.
    • As a result, the pair is currently on the cusp of a seven-day losing streak, down another 0.4 percent today.
    • From a technical standpoint, there is very little chance of a push towards 0.6500 in the near future. And there might be where sellers are aiming before we see a respite in the bearish trend.
    • The chart above just serves to underline that the dollar is in a favourable technical position across the board.

    British Pound

    High inflation is a great problem. And if it does not get under control soon, it will influence the pound even worse.

    The British pound may continue to fall: various basic and technical variables support this prospect. The US Fed’s aggressive strategy and the predicted expansion of the dollar will cause the pound to fall quicker than it is presently.

    Accelerating inflation and rising interest rates in the United Kingdom will only add to the burden. The situation may improve if all coronavirus limitations were lifted in the United Kingdom. However, based on how the situation around the Omicron strain is unfolding throughout the world, it would be premature to rest just yet.

    GBP/USD technical analysis

    The technical outlook of the British currency is likewise bleak. The GBP/USD currency pair is breaching the 1.3705 barrier level. The current price pattern on W1 resembles a bearish 5-0 pattern. A bounce off the top border of such a pattern, in most situations, signals the start of a drop with the objective of falling below the local low. As a result, GBP/USD prices may decrease to 1.3005 in the near future. In this case, 1.3405-1.3305 is a solid support level. These are critical levels, and a confident breakout will pave the way for a powerful falling momentum.

    Cryptocurrency

    Bitcoin attempted to climb on Thursday morning but began to fall along with US market indexes during the American session. Despite opening higher, the US stock market plummeted following Thursday’s trade results. The high-tech Nasdaq experienced the most significant losses.

    Investors continue to flee US markets as the US Federal Reserve’s monetary policy is projected to tighten. Following its meeting the day before, the central bank announced that it will begin raising interest rates in March, thereby ending the whole stimulus programme at the start of the month. The Fed’s balance sheet will be reduced in the future, according to the regulator.

    In such cases, investors will continue to cut their positions in risky assets, and cryptocurrency may be the first to suffer.

    Meanwhile, bitcoin is attempting to maintain a price over $35,000, taking advantage of a respite in the slide of the stock markets. However, if the stock market continues to tumble, the crypto market will follow suit.

    The Securities and Exchange Commission (SEC) of the United States has denied Fidelity’s application to operate a bitcoin ETF. Due to strong volatility in the stock market, Fidelity advised investors that bitcoin was in a “liquidity storm.”

  • 200 Day Moving Average

    200 Day Moving Average

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #uncertainity #inflation #moving #average #twohunderedday #bitcoin moving

    The 200-day moving average is a technical indicator used to discover and evaluate long-term trends. It is just a line that reflects the average closing price for the previous 200 days and may be applied to any asset. 

    The 200-day moving average is extensively utilised by forex traders since it is seen as a solid indication of the currency market’s long-term trend. If the price is continuously trading above the 200-day moving average, the market is in an uptrend. Markets that trade persistently below the 200-day moving average are considered to be in a downtrend.

    The 200-day moving average is determined by summing the closing prices for the previous 200 days and dividing by 200.

    200 Day Moving Average Formula = [(Day 1 + Day 2 …. + Day 200)/200]

    Every new day yields a new data point. Connecting all of the data points for each day produces a continuous line that can be seen on the charts. 

    The 200 day moving average has grown in popularity since it can be utilised to help traders in a variety of ways.

    The 200-day moving average may be used to discover previously accepted significant levels in the FX market. In the forex market, the price will frequently approach and bounce off the 200-day moving average before continuing in the direction of the current trend. As a result, the 200-day moving average may be used to determine dynamic support or resistance. 

    When the market is in an uptrend, traders will attempt to go long when the price bounces off the 200-day moving average. Similarly, in a downtrending market, traders may seek short positions when the price bounces from the 200-day moving average. In an uptrend, stops might be put below (above) the 200 moving average (downtrend).

    Once the long-term trend has been determined, traders frequently analyse the trend’s strength. This is significant since a weakening trend may indicate a trend reversal and provides an excellent opportunity to exit an existing trade. 

    Because they follow more recent price movements over a shorter time period, shorter-term moving averages such as the 21, 55, and 100-day moving averages help traders identify whether an established trend is losing momentum.