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October 8, 2020

Markets Calm on Light News Day; AUD/USD Downtrend Tests Parity

As expected, price volatility calmed overnight and ranges in equity and currency markets have tightened relative to what was seen in recent weeks. Currencies are mostly unchanged from yesterday while stock markets saw a slow drift lower. Some of this activity could be explained by the fact that Federal Reserve comments (from New York President Dudley) were supportive of the Euro and made the suggestion that we will not see any of the member countries abandon the currency.

Headlines, though, were mostly inconsequential but there was the Senate confidence vote in Italy, which passed, and showed the government’s approval of the new Prime Minister (Mario Monti). Another vote is scheduled for the lower house (the Chamber of Deputies) but most analysts expect this vote to pass as well. There are still internal disagreements that are being voiced but these mostly relate to taxes on the wealthy so at the moment it appears Italy has a cohesive majority body in the leadership role.

In the US, macro data came in strongly, as housing starts and jobless claims managed to beat market expectations. Other market chatter centered on an interview from Bank of England member Weale who showed support for renewed injections of quantitative easing, in the form of Gilt purchases through 2012 if we continue to see weakness in the economic data. The GBP met some selling overnight as Weale’s comments also suggested that the UK economy might have already entered into recessionary territory.

We did have some UK macro releases, which helped stall some of the pressure on the GBP, as October Retail Sales showed improvements at 0.6% for the monthly figures and 0.9% for the yearly data. The upside impact of the data was limited, however, because of the volatile nature of the report and the fact that we could be seeing some unnatural distortions as consumers make more purchases in anticipation of the Christmas holiday season.

Read the rest of this article at our spread betting site where we are covering daily market analysis to help you with your financial investment. We also have discussion around spread bet companies such as ig index, city index and more.

Markets
October 8, 2020

Eur/Usd:Forex Strategy

4Hr Chart Eur/Usd

When trading this Forex Strategy using a trend line break like this it is important to set a solid stop loss above the trend line in case the trade continues in the current upward direction.

The current support level for this pair is 1.2138 look for this level to either hold when it gets tested next or break down for bigger losses. The next level of resistance for this pair is 1.2600 and then
1.3000 those are key levels that we could see a sharp bounce off of
these areas to the downside.

You can expect to get trading advice such as this everyday when you subscribe to our premium trading service.

Thanks for reading and take glance at the recommendations below.

Other Blogs that are writing about Eur/Usd:

Forex Crunch: Has Forex Strategy and Updates
The GeekKnows-Eur/Usd daily
commentary

One other tool free trading tool I recommend is Currensee where you can see what other traders are doing and learn a style from them.

Strategy
October 8, 2020

Euro Under Pressure as Bond Yields Story Remains at Forefront; S&P 500 Support Seen at 1240

The Euro continues to sell off as market focus centers on European bond yields, which are not only reaching record highs in Italy but also rallying in many of the peripheral EU nations as well.  Market speculation of credit downgrades in Austria added to the volatility but things managed to calm down after Moody’s dismissed these rumors.  Other hard-hit areas were France and Denmark, which is essentially indicative of a widespread flight from European bonds, even in the core countries.

Macro data showed that both the German and Eurozone ZEW surveys are identifying renewed economic weakness but some positives were seen in the UK, as BoE comments suggested that inflation will encounter a drastic downward correction through 2012 and reach the central bank’s target level of 2% by the end of next year.  Regional focus today will come with the BoE Quarterly Inflation Report, and if these comments are supported by the data, the GBP likely to extend losses against most of the majors.

US macro data was relatively encouraging (but not enough to push equity markets into positive territory) as retail sales passed expectations at 0.5% and the New York Empire State manufacturing report showing a strong improvement from last month’s numbers (which were well below historical averages).  Inflation at the producer level was also lower than expectations but the core reading remains slightly above the Federal Reserve’s target levels, at 2.8%.

Fed speakers were seen adding to this barrage of economic data, as differing comments from members Fisher and Evans argued the appropriate level of monetary stimulus for the US economy.   Evans actually suggested that additional stimulus is necessary, so it is relatively surprising that equity markets could not manage to push into positive territory given the mostly encouraging economic data that was released yesterday.  From this, we can see what is really driving market activity as traders continue to be fixated by headlines and market speculation.  This type of environment is rarely positive for equity markets so expect stock rallies to be sold into for most of this week.

Looking forward, macro releases will be mostly inflation-related, as US and Eurozone CPI will be released along with the UK quarterly inflation report and claimant count.  Additional US data will come in the form of Treasury Inflows (which could get more attention than it normally does) and the monthly Industrial Production figures.  The Fed’s Dahlgren, Rosengren, and Lacker are also scheduled to speak.

Read the rest of this article at our spread betting site where we are covering daily market analysis to help you with your financial investment. We also covering topics on spread bet companies such as ig index, city index and more.

Euro
October 8, 2020

Congressional ‘Super Committee’ Fails to Reach Budget Agreement; S&P 500 Pressures Support at 1180

The Euro managed to gain back some of its Monday losses after European Finance Ministers approved the next loan disbursement to Greece (valued at (8 billion Euros), which will be paid out at the end of the month.  This helped equity markets and risk sentiment on the whole but this was tempered by comments from Fitch which suggested that the credit outlook rating in the US might be changed from “stable” to “negative”  despite the fact that the other ratings agencies are not expected to make similar moves.

On balance, markets appear to be looking at these issues favorably but there is also the possibility that the rise in equities and high yielding currencies should be viewed as profit taking on short positions rather than a genuine shift in the underlying bias.  Macro data will come mostly from the US today (as there are no major government or corporate releases scheduled in Europe, Asia or the UK).

US releases will be seen with GDP and Personal Consumption Data, which come with the Richmond Fed Manufacturing Survey and the latest FOMC monetary policy meeting minutes.  US corporate earnings are mostly from second tier companies but Hewlett-Packard was the main story yesterday, losing 2.3 percent in aftermarket trading on weaker expectations for fourth quarter earnings (driven by write-downs and slower PC sales).

Read the rest of this article at our spread betting site where we are covering daily financial analysis to help you with your investment. We also covering topics around ig index, city index and more.

Super Committee
October 8, 2020

Becoming Better at Forex Trading

Thanks to the rise of online trading, everyone now has the potential to enjoy the benefits of Forex trading. To become good at it, though, you will need to do much more than simply setting up an account and loading it with cash. This is a truth few people realize until it’s too late and they’ve lost every penny which is why this article will focus on a few suggestions that will help improve your Forex trading.

There are seven different currency pairs that are referred to as major pairs and a lot of secondary ones. While the diversity offers veteran traders a multitude of trading opportunities, it can be a serious drawback for the novice. Any experienced trader will tell you that you need to learn how to trade one currency pair properly before you move on to another. It might seem ridiculous to give up so many trading opportunities but by focusing on one pair you will soon find it easier to predict its movements because you learn all its quirks. Your ability to accurately predict price movement will also strengthen since your economic understanding of the currencies in question will increase. Focusing on a single pair will translate into greater profits.

When trading, most people think of fundamental and technical analysis. Before entering a trade, however, there is another component that must be studied and that is trader sentiment. Since the market consists of humans who are trading, it is subject to how they feel regarding various issues, including such things as the economy of a country, which will impact price. For example, let’s assume that EUR/USD price charts are showing there’s an opportunity for a profitable trade. The Euro is becoming stronger and the strong trend revealed by your charts makes it clear it’s time to buy. Suddenly, you find yourself fifty pips in the red because the market has slammed the breaks on and changed direction. What you didn’t know was that a major economy in the EU was denied help, for example, which means they will default on their loans. Thus, traders lost faith in the Euro and began to sell like there’s no tomorrow, weakening the Euro. For this reason, understanding and analyzing market sentiment is essential alongside fundamental and technical analysis.

It’s easy to lose your way and become overwhelmed with the hundreds of indicators at your disposal. You could even overlook some excellent trading opportunities because you are attempting to utilize too many indicators at one time and the market never meets all your parameters. This is a good time to go back to the simple things, especially if your chart has so many indicators on it, you can barely see the candles. Price moves quite simply and that’s up and down. If price is making lower lows, then it’s going down, and if it’s making higher highs then it’s going up. In this situation, the trend will likely continue. If price is making a lower high or a higher low, then it’s reasonable to assume it will retrace. You’ll be surprised at how much you can deduce from simply watching the price move. Sometimes, taking the simple approach is much more effective.

When you see how many things you need to master, Forex trading can seem pretty hard. Despite this, the benefits are completely worth the effort and dedication required. You should never create a live account, though, before you are consistently profitable with a demo account. This way you are more likely to make a profit when you switch to a live account.

Better at Trading
October 8, 2020

Three Ways to Improve Your Forex Trading

Trading currencies seems to be extremely popular among people who wish to replace or supplement their existing income. Most people end up losing all their money, though, because they have a tendency of being extremely impatient and trying to run before they can crawl. You’ll be glad to know that if done correctly, Forex trading can be lucrative. This article will cover a few suggestions that should help you improve your Forex trading.

The biggest problem most new Forex traders have is that they throw themselves into the market before they learn how to trade properly. They think they can start making a profit right away, with just a few courses and books under their belt. After, they aren’t sure why and how they lost their whole account. Forex trading is not a way to make money overnight and requires quite a bit of hard work and dedication to make a profit. You have to practice trading with a demo account because trading live is completely different to theory and take the time to learn the theory as well. It is essential, for this reason, for you to practice trading on a demo account for a while or, preferably, until you are consistently profitable. Only then should you put your own money into the markets.

Any successful Forex trader needs to know how to conduct technical analysis, which is the study of price movement. Since history has a habit of repeating itself, the idea is that by looking at how price has reacted in the past, it will be easier for a trader to forecast how it will behave in the future. Basically, one presumes that price is likely to behave as it did in the past and traders use price charts to identify potential trading opportunities. However, technical analysis can be highly subjective as two traders are very likely to see completely different things on the same price chart. You need to learn technical analysis, though, if you wish to succeed at this occupation, which means being able to identify chart patterns, being able to apply indicators such as Bollinger bands, MACD and pivot points.

Learning to identify candlestick patterns will benefit your trading greatly. A candlestick is one way of presenting currency value for the timeframe being traded, showing the highs, lows, opening and closing prices. Since you can see the direction of the market at a glance, considering that the bodies of candlesticks are color coded according to whether price is moving up or down, they have become extremely popular with traders. The shape of a candle can signal a change in the direction of the market or the continuation of a trend, and that is what candlestick patterns refers to. A candle with a small body and a long tail, with price closing higher than it opened, is known as a hammer, for example. If it appears after a series of candles where price closed lower than it opened, it usually signifies that the market will change direction. There are plenty of patterns that can also help to determine whether or not the trend will continue.

Forex trading can seem daunting, especially when you realize exactly how many concepts you have to understand. You will have to put quite a bit of work in, but it’s more than worth it. But never put money into the market before you have proven results on a demo account first. This increases the chances of your live account being profitable.

Ways to Improve
October 8, 2020

Forex Factory Simple Trading Strategy

Today I want to show everyone a very simple yet powerful trading strategy that I saw in Forex Factory. For this strategy you don’t need any indicators and all you need is a live forex chart.

This system can generate a daily profit of about 30-50pips 
It is made for the U.S trading session.

Here are the stages for setting up the system:

1. Use the M15 Chart for a USD Major pair, example like EUR/USD.
2. Add a vertical line at 14:00 (EST) time on your Chart.
3. Add a vertical line at 16:00 (EST) time on your Chart.
4. Make a Horizontal line at the low of candles in the range.
5. Make a Horizontal line at the high of candles in the range.

Now you should have a square or a rectangle drawn in your chart which is a typical range. All you need to do to complete the trading system is place sell stop at the low with stop loss at the high and a buy stop at the high with a stop loss at the low.

Ideal Targets: You should aim for about 30-50pips but if you think it will go stronger then just leave it with no targets. You can also use a 15 pip trailing stop if you have that feature.

Trading system was first found in Forex Factory. Please comment if you find the system profitable.

Trading Strategy
October 8, 2020

Stockpair Review Updated For 2014

Stockpair has been an incredibly popular pair options broker ever since they first hit the scene in 2011. And then in late 2013 they even began to offer the standard high/low and 60-second binary options contracts. This in-depth StockPair review by the Bosses is updated for 2014 and reflects all of the many changes which has taken place for this service in the last year or so.

Unfortunately, this year’s review did reveal some rather bad news, at least for some of us. And the unfortunate news would be that Stockpair will no longer be accepting any US-based traders, due to regulatory conflicts. This is a big blow to US-based pair options traders because there is absolutely no reasonable alternative to Stockpair for the advanced trading of pair options contracts. But, for those of you who reside outside the US, this poses no problem at all. So check them out, and see if they might be able to fit your trading needs. Good luck out there!

Stockpair Review
October 8, 2020

Forex Volatility Factor EA – My REsults and Reviews – Get Download

Hello Guys,

Today post my review about Forex Volatility Factory EA.

If you really think about trading with volatility strategy you can see some info about volatility factor methods for trade forex market. But if you not have some time for trade with volatility strategy – you can choose automated trading.

Forex Volatility Factor EA – it is Best tool for trade with volatility factor method. You can find more details about Volatility Factor EA on official web site and can try to trend with some profits. If you have any questions or help for trade with Volatility FActor EA please contact us and we help you.

Best regards.

Forex Volatility Factor
October 6, 2020

Understanding the Different Stages of Investments

There are several branches to understanding finance and investments. People who have just started working might want to pay attention to the ropes of investment more than anyone else. They are the ones who need to save their money and invest in the right portfolios. However, they are also the ones who do not have all the required knowledge about investments. And that is why we have an article here that explains the different stages of investments in some details. Let us now delve right into the article and try to get the hang of the right ways of investing.

Investment- In a Nutshell

The very talk about investment could give rise to bouts of nervousness. And this is especially true for the ones who have never gone about the job by themselves before. However, to begin with, there is an investment ‘risk ladder’ that you might want to learn about, and that can help you navigate the risks of different assets and portfolios.

According to this risk ladder, cash is the most stable form of investment, and any other kind of complicated investment is the most volatile. The risk ladder helps you understand the different types of investment so that you can figure out what works the best for you.

Nutshell

The Investment Ladder- Simplified

In this part of the article, we shall look into the different levels of investment, also known as the investment ladder, to better understand the ropes of investment. The investment ladder shall help you work out the type that shall suit you the best. What works for your friend might not as much work for you too. And that is why you need to be more cautious.

Cash- The Most Stable Form of Investment

The most stable form of investment, as we mentioned earlier, is that of cash. There are very few complications associated with it, and it is quite easy to understand as well. Plus, it truly is the safest option for those who want to invest securely. You have the guarantee to get your capital back on time. However, on the downside, you might also have to pay massive penalties to withdraw your money that is locked up in the portfolio.

Bonds, Mutual Funds, ETFs and Stocks

Besides other volatile alternative forms of investments like real estate and hedge funds, other options to that lie in between on the ladder are those of bonds, mutual funds, ETFs and stocks. These too, are quite volatile and susceptible to more risks than cash. The ups and downs and sudden market crashes can lead to losses. However, on the plus side, investing in these portfolios can be quite lucrative as well. Mutual funds are a great place to invest, and here you can spread out your investment in a number of portfolios to avoid losing everything altogether.

Mutual Funds

Conclusion

There are different types of investments. While some like to invest in gold and land, some others opt for stocks and policies. You must work your costs and choose the ones that you feel shall work the best for you.

Investments