EURUSD (1.11): The single currency has started to ease back following the post-ECB rally. Failure to test the upper resistance near 1.123 signals a potential pullback with the upside bias in the near term likely to stay intact. Support to the current declines come in at 1.095 – 1.10 region which is likely to be critical in the short term. A break below this support could see EURUSD slip down to 1.081 – 1.075 support. The new median line sloping down shows the significance of the 1.095 – 1.10 support, which could potentially mean a decline lower if the support fails, this downside view is also further validated by the lower high posted against the previous highs above 1.13. In the short term, EURUSD is likely to remain under pressure as the FOMC meeting due on Wednesday edges closer.
Bias (D1): Flat
Support: 1.095 – 1.10
Resistance: 1.11
Technical Forecast: FOMC will be the key event to see EURUSD breakout. Below 1.095/1.10, support at 1.08 – 1.075 will be open for a test while above 1.11, 1.123 will be the resistance level of interest
USDJPY (113.4): The consolidation in the price action since February 10th has seen USDJPY caught in a range. The minor inverse head and shoulders pattern being formed will be critical as a break above the 114 neckline support could confirm a new leg in USDJPY to the upside. The inverse head and shoulders pattern could see a minimum move to the upside towards 115 with the potential for a rally to continue pushing the Greenback towards the 117 resistance level, which is validated by the bullish divergence to the Stochastics and the support being established near 112.5 – 112.0 levels.
Bias (D1): Upside
Support: 112.5 – 112
Resistance: 115
Technical Forecast:
GBPUSD (1.42): The Cable has managed to breakout from the resistance level near 1.42 – 1.41 region. A decline lower could see this newly breached resistance being tested for support. Establishing support here could prepare GBPUSD for a new leg higher towards the 1.463 resistance level. Alternately if the support near 1.42 – 1.41 fails, GBPUSD could see a decline back below the falling trend line with bearish momentum, targeting the 1.40 handle. Below 1.40 there is scope for the currency to post new lows if it goes beyond the previous low near 1.3865. To the upside, the gains in GBPUSD will be limited to 1.4635 through 1.481 at the minimum. Above 1.481, GBPUSD could be looking to trade towards the 1.50 psychological level.
Bias (D1): Upside
Support: 1.42 – 1.41
Resistance: 1.4631
Technical Forecast: If 1.42/1.41 support holds, GBPUSD could be looking to reach for 1.4631. To the downside, below 1.41, GBPUSD could slip towards 1.40
USDCAD (1.32): Prices are showing signs of consolidation but gradual new lows being posted in price. 1.3136 is the critical support level which if breaks could see USDCAD fall towards 15th October 2015 lows of 1.2865. However, expect to see a bounce at the first instance to the support level, which could see prices attempt to test the resistance established near 1.346 – 1.3387. Above this resistance, the next level of interest will be 1.367 – 1.364 which could keep the gains in USDCAD capped.
Bias (D1): Downside
Support: 1.3136
Resistance: 1.346 – 1.3387
Technical Forecast: Price likely to stay range bound at current levels with a breakout to the upside taking USDCAD towards 1.367 – 1.364, while to the downside, a test to 1.2865 will be likely
USDCHF (0.98): Following the steep bullish flag pattern, USDCHF has failed near 1.0045 level as we anticipated over the past reports. With prices now trading near 0.9928 – 0.9848, USDCHF could remain range bound into the SNB’s and the FOMC’s meeting over the week. Support to the downside is at 0.96665 while resistance if fairly strong to the upside. However, a break above 0.9928 could see USDCHF look towards another test to 1.0045 and potentially target 1.0150. To the downside, below the minor support at 0.96665, 0.9547 support will be the next big level to watch for.
Bias (D1): Downside
Support: 0.9664
Resistance: 0.9928
Technical Forecast: The bias to the downside is more open with a dip to 0.9664. To the upside, resistance levels are strong at 0.9928 – 1.0045.
In short, Tuesday, Wednesday and Thursday are widely considered to be the three best days of the week to trade. Forex trading is best at the busiest times. This often means the best return on your investment, as well as the most profitable trades.
Next target is 100% projection of 140.25 to 150.87 from 146.47 at 157.09. On the downside, below 155.30 minor support will turn intraday bias neutral first. But outlook will stay bullish as long as 153.58 support holds, in case of retreat.
The weekly rule system is a trend-following trading system. One example of the system is the four-week rule (4WR). Traders will buy when prices reach a new four-week high or sell when prices reach a new four-week low. The weekly rule trading system was established by Richard Donchian.
Summer is considered to be the hardest trading period with the exception of Christmas holidays. At this time, institutional investors leave the market to go on vacation, which is why liquidity is down, volatility is up (or down due to the lower trading volumes?).
Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour. For example, if a stock closed at $40 the previous day, opened at $42 the next, and reached $43 by 10 a.m., this would indicate that the stock is likely to remain above $42 by market close.
While the summer period (June-August) is speculated to show the least returns for many markets across Europe, August is said to be the worst month to trade. The reason for this is that most institutional investors in Europe and North America go on holiday.
The bullish trend is currently very strong on USD/JPY. As long as the price remains above the support at , you could try to… A bullish trend on USD/JPY both in substance and in the short term.
The USD to JPY forecast for tomorrow is currently predicting the USD/JPY exchange rate to drop to ¥ 154.13 in the next 24 hours, representing a -1.14% decrease.
For a hands-on trader who wants to buy options for the best possible price and make quick and frequent trades, weekly options can be a great choice. Monthly options also offer plenty of opportunities for benefiting from trading stock options, and allows for a longer-term approach to trading.
Swing trade positions have a better potential for larger gains and losses than day trade positions since they are generally open longer. Because each trading approach is unique, traders should select a strategy that suits their talents, interests, and lifestyle.
Trading Hours: Weekly options will have the same trading hours as monthly options for that product. Equity options - 9:30 a.m. to 4:00 p.m. ET. ETF options will trade the same hours as the underlying ETF. For most ETFs, this is 9:30 a.m. to 4:00 p.m. ET.
The AUD/JPY, AUD/USD, CAD/JPY, NZD/JPY, GBP/AUD, USD/MXN, USD/TRY, and USD/ZAR move the most pips daily but are not the most liquid currency pairs. Among highly liquid currency pairs, the EUR/USD and the GBP/USD move between 70 to 120 pips daily, followed by the USD/CHF and the USD/JPY.
Based on this volatility structure, the DoW and MoY are analyzed. For BTC, returns on other days are lower compared to Mondays. However, for ETH, returns on Thursdays are lower than those on Mondays. In terms of volatility, both BTC and ETH show that the highest volatility occurs on Mondays.
The London session is the most active and liquid of all the sessions. The majority of major forex transactions occur during this time. This session also overlaps with the Tokyo session, increasing trading volume and volatility.
One of the worst times for placing trades is immediately before or after high-impact news. These events range from central bank rate decisions to non-farm payroll. By waiting for the session to close at 5 pm EST, you avoid the 'chop' that often occurs around these events.
One common question that many traders have is, "How many trades should I do in a day in forex?" The answer to this question is not one-size-fits-all, as the ideal number of trades can vary based on your trading style, experience, risk tolerance, and market conditions.
Fridays often see profit-taking and position squaring ahead of the weekend, which can lead to reversals. Friday is usually characterised by high volatility and can be the most volatile day of the week.
Night trading on the forex markets has advantages for new traders as volatility tends to be lower and for experienced traders using scalping or automatic trading strategies that tend to work well with less volatility.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
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