If forex trading can be defined in any way, it can be said to be the process of trading and managing risk. This is something many new traders find difficult to understand but perhaps one simple way to explain it is by looking at a candle pattern which, in all my years of trading, has rarely let me down and has proved to be one of the most consistent trading signals,
Following the Japanese earthquake in mid March where the dollar yen promptly sold off sharply, before G7 intervention managed to send the pair back to the 86 level, since then the dollar yen has been on a downwards slide back towards the 80 level where we have seen an extended period of sideways consolidation for the past few months. Yesterday’s price action finally broke out of this sideways movement, breaking through the
Following two months of sideways consolidation the dollar index is now approaching a key technical level on both the daily and weekly charts, and coupled with various other signals the next few days could dictate the future direction for the dollar and consequently the major currency pairs during the summer months. So, the first point to note is that we are now approaching a key breakout level at the 76.50 area
The sovereign debt issues are back in the headlines once again, with Portuguese bond yields reaching new all time highs last week, and yet there appears to be no single reason for the fall in confidence. My own thoughts are that investors are now becoming increasingly frustrated at the lack of progress in strengthening the EFSF, the stabilization fund for the bailing out of weaker
Since the beginning of the year – a mere 20 trading days , the British Pound has gained almost 700 pips against the US dollar and looked set to continue its upwards trajectory with a move back to re-test the November 2010 high of USD1.6299. That is, until yesterday when the UK GDP figures were announced and as forex traders we were all given a
Another interesting week for us as euro bears, with the single currency ending at a two month high against the US dollar, as well as posting strong rebounds against many of the currency cross pairs. Last week’s performance was of course against the backdrop of the Ecofin meeting, which spectacularly failed to deliver any longer term solution to the debt problems and as such postponed
The fundamental news overnight was all about China, as equity markets stumbled yesterday in Europe and the US ahead of the data, with the FTSE 100 in London ending the trading session with a bearish engulfing candle signalling a potential move lower today. The data for China was a mixed bag, with CPI coming in at 4.6%, slightly lower than the forecast 4.7%, whilst GDP
Another day and another dollar, well not quite, as the euro continues it’s recent bullish reversal higher overnight once again, fuelled by Chinese buying, and relief that the Ecofin meeting has now concluded, although precious little was agreed. The fundamental issues still remain, with the ECB now standing as the guarantor to all the weaker member states, as Germany continues to express it’s concerns over
Last week’s bullish momentum for the UK pound has spilled over into the London trading session this morning, and despite the US markets being closed in observance of Martin Luther King Jr Day, the pair have broken through the psychological 1.5900 level to trade at time of writing at 1.5925. Last week saw the GBP/USD register five straight days of gains, breaking above key resistance
A quiet start to the forex trading week with the US markets closed today in observance of Martin Luther King day, and therefore we can expect thin market trading conditions with low volumes, and volatile moves as a result. With very little real news to excite the forex markets, Europe will be focusing on the EU finance ministers meeting which gets underway in Brussels this
