Edge Forex

Tag: forex

  • HOW TO DRAW FOREX TREND LINES?

    HOW TO DRAW FOREX TREND LINES?

    One of the most popular types of technical analysis is trendlines. However, are you sketching them properly? If not, allow me to demonstrate.

    Many different types of technical analysis are used to study the markets. The application of support and resistance is, by far, the most typical.

    Trend Lines: What Are They?

    On a chart, a trend line is a line that is drawn between two levels to represent support or resistance, depending on the trend’s direction. The more often a price abides by a specific trend line, the more critical that trendline is.

    Based on these trend lines, we can quickly identify possible pockets of higher supply and demand that may help the market go downward or upward.

    How are trend lines drawn?

    In my years of trading and instructing, I’ve seen a lot of misunderstandings about the precise location and placement of trend lines. In this area, there are two schools of thought:

    • You may create a trendline by connecting the highs and lows of a particular candle.

    or

    • They may be deducted from the final price.

    The key is to remain consistent in your approach, so you can either do one or the other.

    Drawing a trendline from the highest closing price of one candle to the higher candle and trying to compel them to match the market is pointless. You’ll likely get some false trade signals as a result of this.

    The direction of the trend, from where the price has been to where it is heading, should be considered while drawing trend lines.

    Let’s examine the trend line in the chart below:

    trendline
    Source: Forex Signals

    The trend line will be positioned below the price in an upward market, functioning as support.

    The trendline will be located where the market price is in a downtrending market, functioning as resistance.

    How should the trend line be placed?

    One technique is to align the trend lines with the extreme highs and lows of a particular candle as measured by its wicks.

    The price is now quite far from where that specific trendline is drawn, which is the only issue. The same holds if you are projecting a market that is declining.

    The closing price method is the alternative strategy. Using the line graph, the price will trade much more closely to the trend line, which you can see on the candlesticks with ease.

    How do you trade using trend lines?

    First off, trendlines established on a long-term chart using the closing price are more accurate and dependable. It might be used on many kinds of charts and for a breakout.

    Second, trend lines may be utilized to create dynamic support and resistance levels based on recent price movements. The support level will be the uptrend line, and the resistance level will be the downtrend line.

    Price movement might either break through the trend line and create a reversal or bounce off the trend line and continue the trend.

    The price won’t always bounce back precisely from the moving average since these trend lines are like regular support and resistance lines.

    The next move should see prices move toward the break after the level of resistance or support has been breached. A fake breakout will occur if prices break and then fail to go forward quickly.

    Trendlines may also be significant or minor, much as with support and resistance.

    Summary:
    • A line drawn between two levels on a chart to represent support or resistance is known as a trend line.
    • The most trustworthy trend lines will always be produced at more significant periods.
    • NEVER try to shoehorn trend lines into a market by drawing them.
    • Trend lines may be used as dynamic levels of support and resistance.
  • 4 Global Market Updates- 15 July, 2022

    4 Global Market Updates- 15 July, 2022

    In this article, we have covered the highlights of global market news about the Silver Price, USD/JPY, Copper Price and S&P 500 Index.
    Silver Price Analysis: XAG/USD will continue to fall towards the $17.92 support level.

    Already having established a new high, silver is moving closer and closer to the critical support level of $18.65. The economists at Credit Suisse anticipate that there will be additional declines in the coming weeks and months.

    “Silver has already finished a massive top and is getting closer and closer to the vital 61.8 percent retracement support of the whole 2020/21 up move, which is around $18.65. We anticipate this will serve at the very least as a temporary floor. On the other hand, if the momentum continues to deteriorate, it is conceivable that more deterioration towards the $17.92 support may occur within the next one to two months.

    “From a purely technical point of view, Silver will not significantly stabilize until it rises over the 55-day moving average, presently sitting at $21.33.”

    Since ancient times, silver prices have been tracked. Among its many uses, silver (XAG) is a valuable metal found in jewelry, cutlery, electronics, and money. In financial markets throughout the globe, silver prices are closely monitored. Silver has been exchanged for thousands of years and originally served as the underpinning for money.

    USD/JPY: Attention moves now to 140.00

    The 24-hour view: “While we did anticipate that the USD would appreciate yesterday, we believed that a sustained increase over 138.00 is doubtful.’” When the USD climbed to a new high of 139.39, we were caught off guard by the sudden acceleration to the upside. Despite being at an all-time high level of buying, the quick surge has not yet shown any indication of slowing down. In other words, the USD might keep climbing higher until it reaches 139.50. It is doubtful that the enormous resistance located around 140.00 will come into play for the time being. Support may be found at 138.60, and then at 138.30.”

    Within the next one to three weeks: “We went bullish USD three days ago (12 July, spot at 137.20), and we predicted that USD might climb further to 138.00, as high as 138.50. Although we were correct in predicting that the USD would rise, we were not quite prepared for the lightning-fast pace at which it blew right through 138.00 and 138.50 yesterday on its way to a new all-time high of 139.39.

    The acceleration of the price increase provides evidence that the USD will continue to gain strength. The next important level to pay attention to is at 139.50, and then at 140.00, which is a significant round-number level. On the other hand, a breach of 137.50 (the level of strong support was at 136.30 the day before) would signal that the upward solid pressure present recently has weakened.

    Copper Price Analysis: A 61.8% retracement of around $6,844 is needed to level the market.

    Copper is still seeing selling pressure and is now trading only a hair’s breadth above the previous yearly low. The market analysts at Credit Suisse anticipate that the metal will locate a stable support level at the $6,844 price point.

    silver

    “We expect the 61.8 percent retracement at $6,844 to floor the market temporarily,” with the industrial metal holding just barely above the $7,291 last set YTD low. “We would expect the 61.8 percent retracement at $6,844 to floor the market.”

    Key resistances may still be observed at the latest breakdown point, near $8,570/8,740.

    S&P 500 Index: Around danger of more short-term weakening to long-term supports at 3522/05.

    S&P 500 continues under pressure. According to the analysts at Credit Suisse, the near-term risk over the next two to four weeks is projected to be lower than it is now. However, crucial support is still anticipated around 3522/05.

    The market has to break above the resistance level of 3946 to conduct a deeper rebound.

    “A break below 3637 would likely set off additional weakening over the following two to four weeks, with the following support being around 3522/05, which is the location of the 50 percent retracement and the 200-week average. We would be inclined to seek at least a floor here if it were hit, especially in light of the waning momentum over the medium term.

    Please click here for the News Updates from July 14, 2022.

  • What Is A Bear Market? Is It A Good Time To Invest?

    What Is A Bear Market? Is It A Good Time To Invest?

    What does “Bear Market” mean?

    A bear market is characterized by an asset price decrease of at least 20 percent from recent highs. Clearly, these are hardly favorable circumstances, but fighting back might be risky.

    Here, we will discuss eight essential investing methods and mentalities that can help you remain cool and “play dead” while the stock market eats into your gains.

    Bear Market Strategies

    Keep Your Fears Under Control

    Wall Street has an ancient saying: “The Dow climbs a wall of fear.” In other words, the Dow has continued to increase throughout time despite economic problems, terrorism, and numerous other catastrophes. Always attempt to separate your emotions from your investing decision-making process. A few years from now, what appears like a great global calamity now may be regarded as little more than a blip on the radar screen. Remember that fear is an emotion that may impair logical decision-making. Keep your cool and continue!

    Invest Using Dollar Cost Averaging

    The most essential thing to remember during an economic slowdown is that negative years on the stock market are common; they are a natural component of the business cycle. If you are a long-term investor (with a time horizon of 10 years or more), dollar-cost averaging is one of your options (DCA). By acquiring shares regardless of price, you get shares at a discount while the market is down. Your cost will “average down” over time, resulting in a better total entry price for your shares.

    Act Dead

    During a bear market, bears dominate and bulls have no chance. According to an ancient proverb, the best course of action during a bear market is to pretend dead, just as you would if you saw a genuine grizzly bear in the woods. Fighting back would be very risky. By remaining cool and avoiding unexpected movements, you will avoid becoming a bear’s meal. Playing dead in financial terms refers to allocating a greater proportion of your portfolio to money market products, such as certificates of deposit (CDs), U.S. Treasury bills, and other assets with high liquidity and short maturities.

    Diversify

    Diversification is allocating a portion of your portfolio to stocks, bonds, cash, and other assets. The manner in which you divide your portfolio depends on your risk tolerance, time horizon, objectives, etc. Every investor’s circumstances are unique. A smart asset allocation plan will enable you to avoid the potentially harmful consequences of putting all of your eggs in one basket.

    Never invest more money than you can afford to lose.

    Investing is vital, but so are eating and staying warm. It is undesirable to invest short-term cash (such as money for the mortgage or groceries) in the stock market. As a general rule, investors should not invest in stocks unless they have a five-year or longer investment horizon, and they should never invest money that they cannot afford to lose. Bear markets and even slight market dips may be exceedingly devastating.

    Consider Excellent Values

    Bear markets may provide excellent investment opportunities. The secret is knowing what you’re searching for. A bear market is characterised by equities that are beaten up, battered, and priced too low. Value investors such as Warren Buffett often consider bear markets as purchasing opportunities due to the fact that the prices of excellent firms fall in tandem with the valuations of inferior companies, resulting in very favourable valuations. Buffett often increases his holdings in some of his favourite firms during market downturns because he understands the market’s propensity to unfairly penalise even outstanding businesses.

    BEAR
    Take Stock in Defensive Industries

    In general, defensive or non-cyclical equities do better than the market as a whole during bear markets. These sorts of stocks provide a constant dividend and dependable profits regardless of the market’s condition. Companies that manufacture non-durable home goods, such as toothpaste, shampoo, and shaving cream, are examples of defensive sectors, since consumers will continue to use these products throughout difficult times.

     Prefer Short

    There are opportunities to benefit from price declines. One method is short selling, which involves borrowing shares of a business or ETF and selling them in the hope of buying them back at a cheaper price. Short trading involves margin balances and might result in damaging losses if markets rise and short positions are covered, resulting in further price compression. Put options are another alternative, which increase in value when prices decline and guarantee a minimum price at which to sell an asset, thereby setting a floor for your losses if you are hedging. To purchase puts, you must be able to trade options in your brokerage account.

    Inverse exchange-traded funds (ETFs) provide investors with the opportunity to benefit from the decrease of significant indexes or benchmarks, such as the Nasdaq 100. When the main market indexes decline, these funds increase, enabling you to benefit while the rest of the market declines. These options may be acquired simply from your brokerage account, unlike short selling or puts.

    Why Is It a Smart Move to Continue Investing During Bear Markets?

    The stock market and the economy tend to rise over the long term. Bear markets may disrupt this generally upward tendency, but these declines always finish and reverse, resulting in new highs. By investing during bad markets, you may develop stronger holdings by purchasing equities at cheaper prices (“on sale”).

    What is the frequency of bear markets?

    Historically, bear markets in the United States occur every 4.5 to 5 years on average.

    Why Is This Known as a Bear Market?

    There are many conflicting hypotheses about the origin of the names bull and bear markets. Bulls often attack by thrusting their horns forward, while bears typically strike by bringing their claws downward. According to a second explanation, the name “bear” derives from the early fur trade, in which bearskins were seen as especially dangerous goods in terms of price and durability.

    Which bear market was the most severe to date?

    The 1929-1932 decline, which coincided with the Great Depression, was the most severe and longest bear market ever.

  • How to Trade Following a News Release?

    How to Trade Following a News Release?

    By creating a solid trading strategy and embracing essential risk management, traders must learn how to handle turbulent markets while performing a trade. Effective trading techniques are provided in this article for investors wishing to trade after a news release.
    1. Trend-based approach

    This strategy uses many periods and clearly defined degrees of support and opposition that are activated after a news release.

    Traders might use this method when a clearly defined level of support or resistance is being approached but not quite reached by the current market price. Market movement might be pushed toward the trend line by the volatility after the news announcement. Traders might try to trade in the trend’s direction and on any possible rebound if the price stays inside the trend line.

    The following four points are helpful for this kind of trade:

    • Find the trend’s direction on a daily chart.
    • Draw lines of support and resistance.
    • Choose a forex time range between 1 and 4 hours.
    • In an uptrend, buy near support, while in a downturn, sell near resistance.

    Keeping this in mind, it is crucial to use tight stops while following this approach since news releases have the power to surpass established levels of support and resistance.

    1. Dual spike breakout approach 

    This approach uses a five-minute chart to wait for market volatility to display a range before trading a break of that range. The US Non-Farm Payroll (NFP) announcement, which often has the most ability to affect the market, is included in this section for illustrative reasons.

    Wait 15 minutes for three candles with a five-minute burn time to shut after the NFP release. Be sure to notice the highest and lowest prices of the two closed candles. After that, put an entry order to buy at the highest price and an entry order to sell at the lowest price. Targets and stops may be specified whenever an order is triggered at a distance twice the width of the high/low channel, respectively, for short trades and long trades.

    Trade

    Volatility might cause the price to go above or below the short-term range, triggering an entry order and prompting a quick reversal to reach a stop loss. This is a drawback of this method.

    In the following situations, this approach may be used:

    • To display 5-minute charts, alter the chart’s display options.
    • Consider the highs and lows of the first three candles.
    • Place entry orders when the price crosses the range’s upper or lower bound.
    • Set limits and stops.
    • Get rid of the unfulfilled order.
    1. Using a News Reversal Strategy

    Immediately after a large news release, the market may move one way before reversing course and moving in the other direction.

    The news reversal method targets a swift, persistent direction change after a significant initial price move and seeks to trade the news after the announcement.

    Algorithms or the market may have sensed an overreaction in price, causing transactions to be placed in the other direction, which led to the reversal. The disadvantage of this approach is that the price keeps moving in the direction of the initial spike without experiencing any price reversals.

    trade
    How to put the news reversal technique into practice:
    • Initial price increase: When news is announced that has the potential to affect the market significantly, prices often increase.
    • Watch for a reversal: Traders might wait 10–15 minutes for the reversal to return the price to where it was before the release.
    • Enter as soon as the price crosses pre-release levels or falls below them.
    • Target Levels: Trading professionals might think about creating numerous goal levels. Trades may be closed out on half of the positions as soon as one is triggered, and the remaining positions’ stops can be moved to break-even.
    CONCLUSION FOR TRADING FOREX AFTER THE RELEASE

    A more cautious method to approach news trading might be to trade the news after the announcement. This is because a trader has time to construct a technical setup for their trade once the emotions from the news announcement have subsided. Whatever trading strategy you choose for news trading, risk management, and using little to no leverage is essential to keeping money in your account to place the next transaction.

  • WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    When an NFT (non-fungible token) is sold, the buyer is not acquiring the underlying digital picture. Instead, the buyer acquires a crypto token that serves as proof of ownership of the digital picture in question. 

    You might as well have given your money to a random individual on the internet if you didn’t have the valid token. This explains the entire premise of these tokens’ “non-fungibility.” Furthermore, because it is kept and accessible through the blockchain, its uniqueness can be easily verified, and no two identical non-fungible tokens may exist. 

    Having said that, many people have attempted to manufacture an NFT, but false or forged NFTs are easily identified since they can always be tracked back to the original creator’s address.

    You could try to counterfeit the token by making your own, but it would be far too simple to detect a fabrication. Why? Because it cannot be traced back to the address of the original developer. 

    NFT

    Can non-fungible tokens be readily replicated or falsified if they are in picture or video format? The straightforward answer is no, and here’s why. 

    All information about the original picture associated to the token is contained inside the metadata of each token. The connected picture cannot be switched since the metadata is unchangeable.

    Minting an NFT

    Assume you wish to acquire one of the well-known Bored Ape Yacht Club (BAYC) NFTs. BAYC is a collection of 10,000 ape NFTs, each with its own token on the Ethereum network. In addition, each ape has a unique Token ID that ranges from #1 to #10,000. 

    Back on subject, if you want to buy a BAYC NFT and make millions of strangers on the internet jealous, the first step is to create an account on OpenSea using a browser plug-in called Metamask. 

    To buy a BAYC token, you must first have an Ethereum wallet, which also serves as your “account number”. Once you pay for the token, the unique bored ape token is transferred to your Ethereum wallet, presuming you have enough ETH in your wallet.

    Having said that, anyone on the blockchain can simply verify that you hold the token because it is in your wallet. 

    To check if the BAYC token you want to buy is genuine, you can simply read the specifics of each NFT on OpenSea, including the “Contract Address” and the token ID. 

    Every NFT project on the Ethereum blockchain has a Contract Address, which is the wallet address of the original developer. For those who are interested, here is BAYC’s original address: 

    That being stated, if the item you wish to buy does not come from the Contact Address shown above, you are dealing with a forgery of a BAYC NFT. 

    Meanwhile, you may use the blockchain explorer “Etherscan” to determine whether an NFT is genuine.

  • Forex Trading World Today November 25, 2021

    #edgeforex #forex #trading #market #stocks #bond #dollar #inflation #euro #eur #prices #ecb #dollar #cryptocurrency #bitcoin forex

    USA 

    Technically, the dollar remains in terrific shape. The greenback is trading more mixed and a little lower on the day, but not by much when compared to the moves in the previous week or even yesterday.

    In US forex trade yesterday, the EUR/USD fell below 1.1200 for the first time since June 2020, but is again hovering around 1.1220. In the grand scheme of things, mild bounce today means very nothing. 

    The USD bulls are still in command, as seen by the USD/JPY market movement. 

    The pair may be down 0.1 percent today, but as long as it remains above 115.00, buyers will have a decent platform to build on in order to extend the upward leg from here. In other news, the dollar is somewhat weaker against the pound and the loonie so far today, but not significantly so. With the Thanksgiving holiday ready to engulf markets, we may not see any substantial changes in FX until next week.

    Iraq

    Iraq claims that the OPEC approach has been effective thus far; OPEC is cautious about pumping and cutting oil output; and OPEC does not want to lose this success since oil markets remain volatile. Any extra amounts may result in a price collapse or oversupply. This is more about future policy, but it doesn’t tell much about what they could do collectively as a bloc in reaction to the SPR release at next week’s meeting. 

    Europe  

    European markets begin the day higher.  

    Eurostoxx +0.3% , France CAC 40 +0.3%. The FTSE 100 in the United Kingdom is up 0.1 percent, while the IBEX in Spain is up 0.2 percent. She’s moving steadily, which is likely to preserve the peace throughout the Thanksgiving holiday later in the day. In terms of currency, the dollar is still a touch slow, but not by much following the advances of the previous day and week in the forex market.

    Japan

    In its most recent monthly report, Japan maintains its overall economic rating. Japan maintains that the economy continues to show signs of weakness in its recovery, despite the fact that severe conditions are gradually easing. 

    Notably, the government raised its forecast for consumption for the first time in 13 months as service spending increased, but it reduced its forecast for exports and production due to persistent supply issues and a slowdown in China’s economy.

    China

    The United States’ entity list is detrimental to US-China ties. China’s Commerce Ministry Remarks • Opposes US Sanctions on Chinese Companies.

    In terms of the trade blacklist, it is all part of the show between the two nations, since there are more pressing matters to address in the broad scheme of things.

    Germany 

    Germany’s final GDP for the third quarter was +1.7 percent, compared to +1.8 percent in the previous quarter. Destatis’ most recent data was issued on November 25, 2021. 

    • GDP (non-seasonally adjusted) +2.5% versus +2.5% y/y preliminary 

    • GDP (working day adjusted) +2.5% versus +2.5% y/y preliminary 

    There is almost little change from the previous report, with just the headline updated to be a little lower, but it maintains a relatively moderate expansion, albeit hampered by supply constraints and growing cost pressures in general. 

    The forecast for Q4 and next year is even less hopeful, as supply and capacity bottlenecks remain, and the worsening COVID-19 situation adds to headwinds for the German economy.

    Read further below:

    https://finance.yahoo.com/quote/%5EFCHI?ltr=1

  • Escalation of Turkey’s crisis may spread contagion

    The lira’s depreciation would exacerbate Turkey’s inflationary dilemma while also risking aggravating currency mismatches on bank sheets. Furthermore, rising external borrowing prices will make it more difficult for Turkish borrowers to roll over their external obligations (which are denominated mainly in foreign currencies).

    Examining Turkey’s gross external finance demand, which is the total of the current account deficit and short-term foreign debt, or, in other words, the capital inflows necessary over the next year, is one approach to demonstrate the gravity of the concerns. Calculated as a proportion of central banks’ FX reserves, and provide an indication of the extent to which the central bank can assist distressed borrowers.

    Foreign exchange reserves in Turkey barely meet around two-thirds of the country’s short-term external finance needs. And this is based on gross FX reserves; net reserves are far smaller.

    However, the probability of substantial balance-of-payments stresses appears to be far lower for most other important emerging markets. Argentina and Hungary may be the most concerned, but even in those countries, foreign exchange reserves will more than satisfy external finance needs for the next year.

    According to SARB rate indicators, the South African rand is weakening as a result of the Turkey contagion.
    South Africa’s rand sank on Thursday, weighed down by contagion from a dramatic collapse in the Turkish lira and signs from the home central bank that interest rate hikes will likely be slower than markets had anticipated.

    turkey


    At 1517 GMT, the rand ZAR=D3 was trading at 15.7050 per dollar, down about 1.4 percent from its previous close.
    The South African Reserve Bank increased its main lending rate by 25 basis points to 3.75 percent ZAREPO=ECI, which would ordinarily help the rand, but some traders were focused on the gradual rate path that the monetary policy committee appeared to favor.


    “The rate of policy tightening will most likely be much slower than the market had anticipated,” said Kieran Siney, co-head of financial markets at ETM Analytics.


    According to Razia Khan of Standard Chartered, the rand was dropping in sync with the lira TRY=, which fell more than 3% after Turkey’s central bank defied inflation of 20% by cutting interest rates by another 100 basis points.


    Johannesburg-listed equities fell, with the All-Share index.JALSH down 0.11 percent to 70,867 points.
    Investec INLJ.J, a financial services business, was an outlier, jumping 1.9 percent after reporting a more than twofold increase in earnings and announcing a 15 percent interest in asset manager NinetyOne N91.L will be distributed to shareholders.


    The government’s 2030 bond yield ZAR2030= fell 1 basis point to 9.455 percent, indicating a slightly higher price.

  • Forex Trading News -November 23, 2021

    Trading the JPY

    The Bank of Japan is heavily bearish. With Japan battling with deflationary pressures for years and a huge QE program. The Bank of Japan’s prognosis remains bleak.

    The fact that the Bank of Japan is projected to keep interest rates on hold while the rest of the globe is expected to raise rates has lately resulted in some heavy selling from asset managers and leveraged funds.

    With the BoJ so pessimistic, rate differentials between the Japanese 10y and the US 10y are normally only seen in the ebbs and flows of the US 10 y. Keep in mind that the Bank of Japan has yield curve control over its bond yields. So, here’s what you need to know:

    A dropping US 10-year yield equals a rising JPY. And a rising US 10-year yield equals a dropping JPY. 

    This correlation is not always ideal because it may ebb and flow, but it is something to keep in mind while trading the JPY, particularly the USDJPY. Take a look at the USDJPY chart below to see how it relates to the US10y. 

    Rising oil prices are negative for the JPY because higher-priced petroleum draws JPY out of Japan. Japan imports the majority of its oil from other countries. And a weak Yen will make those imports more expensive. If oil begins to rise in price, keep an eye on it since this might weaken the JPY.

    Eurostoxx

    Eurostoxx futures are down 0.7% in early European trade, early deals had softer tones.

    German DAX futures are down 0.6 percent; UK FTSE futures are down 0.4 percent. And Spanish IBEX futures are down 0.5 percent. This comes after a more modest performance yesterday, all before US markets took a knock as rates rose in response to Powell’s re-election as Fed chair, so there is some catching up to do ahead of the open today. 

    So far, the mood music isn’t as gloomy as European futures predict, but the risk is still slightly on the cautious side. As we seek to get things rolling, the S&P 500 futures are down 0.1 percent, the Nasdaq futures are down 0.2 percent, and the Dow futures are down 0.1 percent.

    Kaisa bondholders 

    According to a source with firsthand knowledge of the situation, certain Kaisa offshore bondholders who did not receive coupon payments this month have contacted investment bank Moelis & Company for advice on how to handle the situation. 

    For context, Kaisa has not paid coupons totaling more than $59 million that were due on November 11 and 12 (both having a 30-day grace period) and is facing another $400 million dollar bond maturity on December 7.

    An earlier Bloomberg article said that an ad hoc group of offshore bondholders had also sought legal counsel from Kirkland & Ellis. 

    As much as Evergrande is a household brand. It is important to remember that other Chinese property developers are also suffering similar challenges, and Kaisa is the business with the greatest offshore debt after Evergrande.

    Germany

    The situation with COVID-19 is “extremely, very serious” in various German states. No steps, including lockdown, can be ruled out. 

    This reflects last Friday’s viewpoint and simply underlines that local authorities are obviously being stretched to their limits in attempting to get a handle on the newest COVID-19 crisis.

    EUR/USD is approaching 1.1200, while USD/JPY is threatening to break over 115.00. The latter, in particular, is worth watching since it highlights the technical potential for the greenback and maybe yen pairings (if the mood is right) in the coming weeks. 

    jpy

    Looking at other markets, gold’s drop on Powell’s re-election is a significant setback to the recent technical breakthrough, but it was not unexpected. 

    The important daily moving averages around $1,792-93 are a place to monitor, although gold may drop down around $1,750 before any buying interest emerges.

    Aside from that, oil is one that one needs to continue to keep an eye on, and all this discussion of a coordinated SPR release, , is simply begging for a ‘buy the dips’ or ‘buy the fact’ play – even though there may be a kneejerk reaction lower initially.

  • Risk Management: What are the Trader’s Worst Mistakes?

    All About Risk Management

    Here are four blunders you must avoid at all costs while trading:

    • Do not Invest without a proper strategy.

    Emphasizing the necessity of having a trading strategy is simply not enough. Trading without a strategy is nothing more than a game of chance waiting for a terrible outcome. 

    • Diversify your trading portfolio.

    One of the most crucial aspects of investing and trading is diversification. It indicates that you don’t invest all of your money into one item; it’s important to diversify your portfolio. However, while trading Forex, a large number of pairings are connected. Your transactions may appear to be diverse, but they really coincide and will proceed in the same direction. If your analysis is accurate, you could gain a lot of money, but if it isn’t, you could lose a lot of money. Make sure that the deals you make during the day are unrelated.

    • Going overboard after a few wins/losses.

    Even if you have a risk-management strategy in place, you may find yourself in a situation where you feel compelled to go all in. It can happen if you’re on a losing streak and try to win it all back, or if you’ve had several winning trades in a row and feel unstoppable. In any case, if you do not adhere to risk management, you are placing yourself in a position to lose a lot of money. Stick to your management approach no matter what. Taking a 1% risk every trade and a 3% risk per day is advised. 

    risk
    • Risking more than one can bear.

    This blunder stems from the previous one. It’s simple: if you lose more than 1% of your account as a result of a stop-loss, your risk management is incorrect, and you risk losing your account. If you lose several times in succession, your deposit may be forfeited. 

    To reiterate, trading is not only an exercise in analysis. It’s also about how you operate when you’re under pressure. And how you act when you’re on the winning or losing end of the game.

  • EURUSD Update For Oct 21st 2021

    Price EURUSD at the time of writing this – 1.1655

    Price EURUSD at the time of writing this – 1.1655
    The return of the Euro from 1.1617 to 1.1658 yesterday suggests that Tuesday’s re-test near the 3 week high of 1.1669 will take place soon. A violation of which will increase the rise (per our view) from October 1.1525 up to 1.1700- 05. However, ‘loss of upward pressure’ should limit the price below resistance to 1.1755 this week.  On the downside, only a daily close below 1.1617 indicates that the reversal is over, then the trend will turn bearish towards 1.1572 next week.

    Data to be released Today:
    Continuing jobless claims, U.S. initial jobless claims, existing home sales, e, Canada ADP employment change, leading index change, new housing price index, and EU consumer confidence.

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