Where Will JPY Pairs Go Next? Full Yen Tech/Fund OverviewYen Forex Pairs have fallen across the board on rumoured intervention.
This is the propping up of the Yen Currency by Japanese authorities to stop the upward flow of its counterparts and draw further weakness of the JPY due to interest rate differentials between major economies.
The question is, will it continue?
Ecb
How To Make The Link Between Technical And Fundamental AnalysisWithin Market trading, regardless of the assets involved, you need to form both a technical and fundamental case for your bias.
When you do this, you grip great deals, and you also know where it is likely you will head.
This is simple to learn, when described in a simple format.
Keep your eyes on the ECB today. EURUSD in the spotlight!EASYMARKETS:EURUSD
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Euro H1 | Will ECB drive the Euro lower?The Euro (EUR/USD) is rising towards a pullback resistance and could potentially reverse off this level to drop lower.
Sell entry is at 1.05684 which is a pullback resistance that aligns close to the 23.6% Fibonacci retracement level.
Stop loss is at 1.06000 which is a level that sits above the 38.2% Fibonacci retracement level and an overlap resistance.
Take profit is at 1.05256 which is a pullback support level.
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Understanding Interest-rates & InflationHey Traders
So, I have been asked by many of my clients to explain the relationship between interest-rates and inflation and how to translate that information into their analysis.
For this reason I put this little mini lesson together to explain:
- The core role of the central bank
- Reason and objectives for interest-rates and inflation
- How you can use this information to enhance your analysis
- How to take advantage of this info when taking, managing or closing your trades.
PS. if you would like me to do more of these types of videos be sure to leave a comment in the comment section.
✨ MODIFICATION: EURUSD ✨ THE BIG PICTURE (5D)TECHNICAL ANALYSIS:
TP5 @ 1.2115 (closing ALL Buy Orders)
TP4 @ 1.17850 (shaving 25%)
TP3 @ 1.1250 (shaving 25%)
TP2 @ 1.1100 (shaving 25%)
TP1 @ 1.0933 (shaving 25%)
BLO1 @ 1.0820 ⏳
BLO2 @ 1.0800 ⏳
VIDEO TIMESTAMP:
00:00 ECB News
02:53 Where Do We Go From Here?
03:32 A Noisy Intermediate Time Frame (4H)
04:55 Key Support/Resistance Levels (4H)
06:01 Institutional Buying Targets
06:42 Safe Haven Currencies
05:52 Interest Rates and Safe Haven Currencies
08:47 Position Sizing with R:R @ 1:1
10:20 Best Buying Opportunities ⭐
11:04 The BIG PICTURE Analysis ⭐
13:28 BIG PICTURE Anticipatory Trend
16:31 Boost, Follow, Comment, Join
FUNDAMENTAL ANALYSIS:
During today's EUR News trading session, the EURUSD initially tried to rally or, as we call it, exhibited a false positive. Still, the market gave back gains as the European Central Bank raised its key interest rates as anticipated by 25 basis points up from 3.50% to 3.75%. So, considering this, where is Price Action going from here?
Since April 02, 2023, @ 18:00, it's been a very noisy range. This range is our current price curve analysis. It lands between the Pivot Low of 1.0788 and the Pivot High of 1.1095 and, therefore, places Support @ 1.0945 and Resistance @ 1.1086.
Based on the 4H chart, we should be clear for a downtrend breakout if price action opens and closes below our Support Level. A breakout pattern to the downside would also mean Price Action is pulling back from its BIG PICTURE uptrend pattern. Therefore, we should find Institutional Buying Targets around 1.0820 and 1.0800.
Considering the US dollar to "safe-haven" currencies like JPY or CHF, we need to be cautious about our position sizing because this will continue to be a volatile range. We're going to have to "ride the wave" professionally.
Right now, I see a lot of short-term buying and selling opportunities until Price Action reaches its 4-hour Demand Zone around 1..0800. Once we're there, the longer-term opportunity to buy will be ours.
EUR/USD -19/01/2023-• Daily EURO/DOLLAR chart, zooming out back to 2021, where the 1.5 year downtrend started
• Short term, trend is bullish, higher highs higher lows
• Rising wedge forming, a bearish reversal pattern
• Resistance levels becoming support levels, a clear sign of an uptrend
• However, looking at the big picture changes the outlook a little bit
• Drew Fibonacci retracement levels 50% and 61.8% of the long term downtrend
• 50% level is around 1.09 and 61.8% is around 1.1225
• Bulls are now fighting to break the 50% level, without success till now
• Last area of defense for the bears is the 61.8% critical correction level
• If 1.1225 level stays intact, the pair will resume the long term downtrend
• Only if bulls manage to break the above level, we can safely say that the long term trend reversed and we are in a bullish market
Tug of War Among Central BanksThere is a tug of war situation among the central banks to hike interest rates. What is the bad and the good that will come out from this?
i. Last week of October, European Central Bank officials announced another massive 75 basis point hike, increasing interest rates at the fastest pace in the history of the euro currency.
ii. This week, the Federal Reserve is expected to increase rates by 75 basis points for the fourth time in a row.
iii. The Bank of England could join the club on Thursday.
Content:
. The Interest Rate race has just started, why?
. The impact on different currencies
. It may not be all bad news, why?
With higher interest rates, it attracts investors to buy its currency, in this case the USD.
Currency is always a pair, when USD strengthens, the other side weakens.
When a currency gets weaker, it is very bad news for inflation because they will have to pay more on their imports.
Therefore in order to counter inflation, one of the best measures is to hike rate
Expect more volatility in the currencies market, meaning currencies will take its turn to move.
And if you are a trader, you should welcome volatility. Because with volatility, there are opportunities.
GBP Futures
0.0001 = $6.25
0.001 = $62.50
0.01 = $625
0.1 = $6,250
1.1000 to 1.2000 = $6,250
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EUR/JPY - BUY SET UP ON ECB RATE HIKES The EURO now sits under 138.000 on the exchange rate, a key resistance level that will now surely break after European Inflation hit 8.1% for the month of April 2022, igniting the debate about whether the ECB should be raising rates at 0.50% increments instead of 0.25% increments as signaled by Christian Legard.
With European Bond Yields climbing and paying a premium over Japan, the EURO will likely continue to strengthen against the YEN as interest rates rise in Europe.
The overnight carry trade will start to become profitable for the EURO into 2023, which is likely to attract investors into buying the currency pair.
EUR/CAD - Long Set Up As ECB Signals Rate Hikes Are ComingThe EURO is likely to strengthen against the Canadian Dollar as the European Central Bank signals interest rates are going up in July and September, to move the overnight cash rate from -0.50% to 0.00%.
The reason the EURO will strengthen is down to the fact that interest rate differentials will narrow from the market's previous expectation, so investors who are short EUR/CAD will likely look to cash in on the carry trade as it's now hit its peak unless the Bank of Canada goes further then markets expect with rate hikes.
Oil prices are also a bullish beneficiary to the Canadian dollar, but Oil looks to have peaked since it hit $130.00 on March 8th 2022.
German Dax Can See Deeper Correction; Support at 14000 - 13500DAX is waking up, making higher highs and higher swing low which is a bullish trend since March low, so we can expect more upside after any retracement since this is wave A, still only the first leg of a higher degree A-B-C recovery. We can actually see a completed five-wave cycle within first leg A in the 4-hour chart so looks like correction in wave B has just started. That said, an upcoming A-B-C setback can retest 14000 - 13500 support area.
Also, keep in mind that if ECB turns out to be more hawkish and if we will not get any positive news out from the Ukraine-Russia situation then DAX can be easily come down into wave C.
Grega
ORBEX:BoJo Pushes for Election, Draghi Hints to Fiscal Measures!In today's #marketinsights video recording I analyse #GBPUSD and #EURUSD #FXMajors!
GBPUSD Dragged down by:
- BoJo push for an early election on December 12
- Increasing likelihood of October exit failure
EURUSD Under Pressure as:
- ECB reiterates downside risk, stubbornly low inflation
- Draghi hints to fiscal policy measures
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
ORBEX: EURGBP - Ready to Take Break-even Stops Lower?EURGBP could move a tad lower to complete intermediate wave 2 near 0.8480 before continuing higher. The said level is the 100% FE of the first minute degree zig-zag and could be duplicated as minor X was somewhat dominant.
Look for a valid reversal above last zig-zag's minute b wave but expect minute c to complete first. Minute c should be truncated to support this outlook, otherwise, fresh lows can be expected.
Should prices move below minute a low the complex minor W,X,Y pattern could come to an end.
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
ORBEX: GBPJPY, EURGBP - BoJo Wants Election, Adios Draghi!In today's #marketinsights video recording I analyse #GBPJPY and #EURGBP #FXMinors!
GBPJPY Supported by:
- Increasing expectations EC will grant January extension
- BoJo win in case of early election
- Weak safe-haven flows
- Japan manufacturing to 3yr low
EURGBP Under Pressure as:
- Investors eye ECB and last Draghi meeting
- Disappointing Business Climate (French)
- Poor EA Consumer Confidence
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
ORBEX: EURUSD, USDJPY - The Risks Of A US-EU TradewarIn today's #marketinsights video recording I analyse #EURUSD and #USDJPY
#EURUSD weak on:
- US-EU potential trade conflict (airbus illegal state aid - WTO depended)
- ECB's Germans board member resignation
Medium-term #Euro led flows will hang on Lagarde's policy. A potential transition to fiscal tools will be euro positive
#USDJPY strong on:
- Dovish Evans turned neutral
- Positive home sales
- No GDP revision
- No safe-haven flows
- Dollar seen as risk positive
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
ORBEX GBPUSD, EURUSD, AUDUSD Under Pressure! But For How Long?In today's #marketinsights video recording I analyse #fxmajors #audusd, #gbpusd and #eurusd.
They are all under pressure for different reasons:
EURUSD
- ECB's Lane dovish on ECB's inflation target
- Italian CPI weakening
GBPUSD
- BoJo goes to Brussels empty-handed
- Brussels not sure if extension will help
AUDUSD
- RBA reveals plans to cut more if necessary
- Bank could cut twice more in 2019 to support inflation and employment goals
Meanwhile, everyone stresses out about #FOMC!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice