Nikkei 225 futures look terrible on the dailies, with a shooting star candle followed up by a big bearish candle on Friday, completing an evening star pattern. Convention suggests downside risks are building, but I’m not going to follow convention today.
Sitting just above the 50-day moving average, a decent long setup has presented itself, especially with...
Gold could be approaching a correction, with signs of overbought conditions emerging. The Relative Strength Index (RSI) is flashing above 70 on daily, weekly, and even monthly scales, a level not seen since the 2020 pandemic surge. Historically, this has indicated either a multi-day consolidation or a period of selling pressure as investors take profits.
Despite...
Getting your entries right is a big step forward on the path to successful trading. In this post, we’re going over three techniques to potentially improve your entry point and, by extension, hopefully get in trades at more favorable price levels that could ultimately increase your profit per trade.
1. Planning For Breakouts (Or Breakdowns)
Use pullbacks and...
Crude oil is one of the few commodities that hasn’t participated in the broader rally this week, weighed down by a report on Thursday that Saudi Arabia will sacrifice higher prices to protect market share.
Even before the report dropped there were signals crude was staring at downside, with a key reversal on Wednesday setting the tone. The gains crude took weeks...
Like the Aussie post looked at earlier, this isn't a terrible venue if looking for continued USD-weakness. Tomorrow's Core PCE report is a big deal as this is the first piece of inflation data that we'll see after the Fed's 50 bp cut, and at this point rates markets have high expectations for even more softening and this will be spoken to with tomorrow's inflation...
If looking for USD-weakness to continue through tomorrow's Core PCE report, AUD/USD can remain a viable venue, along with GBP/USD.
The pair had a stark pullback yesterday but support showed at a key Fibonacci level plotted at .6824. That was resistance just last week and, so far, it's substantiated a bounce back up to the .6900 handle. That's also the level...
A revival of AI optimism following Micron Technologies strong guidance, combined with additional Chinese stimulus and the prospects of a 50 basis point cut in November, means the path higher is of least resistance,
The Nasdaq 100 has extended its breakout from the symmetrical triangle pattern, rising above 20k and reaching fresh 6-week highs. Buyers will now set...
GBP/USD rises amid a risk on market mood after more Chinese stimulus and ahead of ed Chair Powell's speech later today.
GBP/USD trades above a rising trendline dating back to 2022. More recently, the price has been trending higher since the end of April, forming a series of higher highs and higher lows.
The price ran into resistance at 1.34 and has corrected...
EUR/USD sits in a rising wedge pattern with the price now testing support. With momentum indicators such as MACD and RSI (14) threatening to rollover, traders should be on alert for a potential downside break.
If we get one, you could sell with a tight stop above 1.1140 targeting a move down to 1.1075 or 1.1045.
While we are nearing quarter-end where price...
USD/MXN appears to be bouncing back ahead of the 50-Day SMA (19.1627) as it climbs to a fresh weekly high (19.6849).
In turn, USD/MXN may track the positive slope in the moving average as it continues to hold above the indicator, with a break/close above the 19.8990 (38.2% Fibonacci retracement) to 20.0900 (100% Fibonacci extension) zone bringing the yearly high...
The EUR/USD couldn't hold onto its earlier gains and has turned negative on the day, potentially creating a bearish signal. Its recent gains have been driven more by external factors, such as China’s efforts to stimulate its economy and weaker US data, rather than positive developments within the Eurozone. However, the Eurozone's economic data, particularly from...
It's been a strong run in Cable since the 1.3000 test two weeks ago, with the pair tacking on more than 400 pips, trough-to-peak. That run also produced another overbought RSI reading on the daily chart of GBP/USD which would be the fourth such instance this year. Each of those prior events have led-in to pullback and, so far this morning, that's what we're...
The Euro came into inception in 1999, and a year later set a low at .8229. In 2008, before the Financial Collapse drove a rally in the USD, EUR/USD set a high above 1.6000 that hasn't been taken out.
But, perhaps more pertinent are the levels produced by the Fibonacci retracement around the lifetime move in the pair.
The price of 1.1212 has been especially...
The Dow Jones trades within a rising channel. The price has risen to fresh record highs above 42.2k and is running into the upper band of the rising channel, dating back to the start of April.
The RSI is on the brink of overbought territory, so buyers should be cautious. A rise above the trendline resistance opens the door to a 43k round number. On the downside,...
EUR/USD has been trending higher since mid-April. More recently, the pair recovered from 1.10, the September low, and is testing resistance at 1.12 resistance, the August high, and the 2024 high.
Buyers, supported by the rising RSI, will look to rise above 1.12 to head towards 1.1275, the 2023 high.
On the downside, support can be seen at 1.1140, the December 2023...
Oil traders mull over the demand outlook with China's outlook improving after a slew of stimulus, but the US outlook in question after weak consumer confidence data. EIA stockpiles are due later.
Oil trades below its falling trendlines and its 200 SMA. The price has recovered from a September low of 65.50. However, the recovery has run into resistance at the...
Given its status as cyclical currency closely tied to the fortunes of the global economy, it comes as no surprise that NZD/USD blasted to a 2024 YTD high following China’s latest stimulus announcement.
Having broken long-running downtrend resistance, and with momentum indicators providing bullish signals without being overbought, there could further upside to...
It's been a strong past week for USD/JPY, even as the pair opened last week with its first 140.00 test in a year, followed by the 50 bp rate cut from the FOMC on Wednesday. That built-in a sequence of higher-highs and lows as the Wednesday swing low held above the Fibonacci level at 140.30, and buyers pressed ahead to close last week. And even on Monday, there was...
