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GBPUSD: Continue buying, target 1.2400 The recent failures of Silicon Valley Bank (SVB) and Signature Bank have exposed cracks in the banking system, partially due to overly restrictive monetary policy. This situation could quickly spread, causing the Federal Reserve to intervene to protect depositors and launch emergency liquidity programs to support lending institutions. In summary, systemic risk may pose challenges to policymakers' long-term plans, at least in the short term, prompting them to prioritize financial stability over combating inflation, which is a slow-moving problem. In this situation, next week's FOMC forward guidance may lean towards a dovish stance. A few days ago, the US dollar had strong bullish momentum, but the situation has now turned, as is the nature of the market. If there is no strong risk aversion or events that cause funds to flow into safe assets, the US dollar may continue to retreat in the short term, especially if dovish expectations are met. GBPUSD failed to break above the resistance level of 1.2200 and experienced a downward trend under pressure. However, if the price confirms its position above this resistance, we may see a move towards 1.2450, which is the 61.8% Fibonacci retracement level of the 2022 decline. Therefore, I still recommend buying on dips, and our long position bought at 1.1800 remains in place. Personal trading advice: Continue to enter long positions near 1.2000, with a target of 1.2200-1.2400. If the resistance level is broken, continue to hold the position and look for further upward movement. In the long term, there is still significant room for growth, and I will continue to update my personal trading strategy in the future. Please stay tuned.
Long
by FlashTrades_
1
EURUSD:long position,target 1.094 Although both Europe and the US are experiencing high inflation, the US has already taken the lead in raising interest rates several times and by a large margin, causing capital to flow back and the dollar to appreciate; while the Eurozone is forced to raise interest rates. If they don’t raise rates, as we can see now, capital in the Eurozone is accelerating its outflow and the euro is depreciating. But if they are forced to raise interest rates, their already sluggish economic growth will be curbed to some extent and it will increase the debt risk of some member countries in the Eurozone, bringing more hidden dangers. In addition to the Fed’s rate hikes, Europe’s own economic situation is not optimistic. Since the outbreak of the Russia-Ukraine conflict, many European countries have followed in step with the United States. On one hand they continue to fan flames and repeatedly send weapons to Ukraine causing conflicts not being resolved; on other hand they impose multi-dimensional sanctions on Russia which directly leads Europe itself facing energy shortages or even supply cuts. From November 11th onwards Russia temporarily shut down Nord Stream-1 gas pipeline for routine maintenance. There are widespread concerns in Europe that this pipeline’s “maintenance period” will be extended or even completely shut down which will continue to push up energy prices in Europe and plunge its economy into recession again. This concern also causes a large amount of capital to flee from Europe lowering euro exchange rate. Looking at EURUSD daily chart: EURUSD plummeted to key support level near 1.0535 then showed stop-loss rebound trend indicating that support below remains strong. In short term USD trend is under pressure EURUSD may see a good uptrend we still remain optimistic about future rise. Personal trading strategy: Go long near 1.0600 first target at 1.07500 second target at 1.09350 I have conducted in-depth research on futures products such as cryptocurrencies, forex, stocks, gold, and crude oil. I also update my daily operation strategies. Thank you for your attention and support. If you have any questions, please feel free to leave a message, and I will provide the most secure advice. I hope I can help you.
Long
by FlashTrades_
4
EUR/USD Bulls Gearing Up?The MACD has shown trend continuation divergence (A.K.A "Hidden Divergence"). After the price action found footing at that pivotal zone (1.0550 - 1.0600), the Bulls appear to be gaining some strength. We have a strong gap to fill around 1.0640 but we'll have to see what happens during CPI numbers tomorrow morning. Based off of the longer term time frames, EUR/USD could see a run towards 1.1100+ as long as we do not trade back below 1.06000. If EUR/USD is pushed back down below 1.0600, the trade idea is invalidated.
Long
by InternalTraderNYC
Beware of "Long Trap" in USDJPY! On March 3, Friday, the USDJPY slid from a two-and-a-half-month high. The US non-manufacturing ISM index, released on the same day, fell from 55.2 in January to 55.1. The US dollar index, which measures the dollar against six major currencies, dropped from a high of 105.36 at the beginning of the week to 104.60. Investors took the opportunity to profitably unwind their positions in USD/JPY. At the same time, the Bank of Japan is expected to begin unwinding its unconventional stimulus measures in the period following Governor Haruhiko Kuroda's departure next month. This is because Tokyo's February inflation data exceeded the Bank of Japan's target for the ninth consecutive month. If the new governor, Toshihide Endo, tightens monetary policy, it may stimulate the return of speculative trading in the yen. Currently, on the daily chart, USDJPY has encountered resistance multiple times at 137.00, and the MACD signal line appears to have a death cross. In the short term, attention should be paid to the risk of further pullbacks in USDJPY, with the risk of long positions at the high outweighing the profit. Personal trading recommendation: Wait for the market to fall back to 133.00-133.60 before entering long positions, with a focus on the 136.400-137.110 range. There will be many data releases in the near future, and the market may be volatile. If there is a trading opportunity, I will announce it immediately. Please stay tuned.
Short
by FlashTrades_
GBPUSD: Enter long positions on dips Consequences of Powell's testimony overnight: Higher interest rate prospects for 2023. As of writing, the terminal interest rate expectation has risen to 5.655%. A 50 basis point rate hike is more likely at the March meeting. If the upcoming US inflation and nonfarm payrolls data fall short of expectations, it may dampen market expectations for rate hikes and provide upward support for the pound. After yesterday's sharp drop, the GBPUSD trend is temporarily hesitating, waiting for further guidance from fundamental data. After breaking through the psychological level of 1.1900, the 200-day moving average, and the lower support of the wedge, the bears are currently trying to push prices down to the previous oscillation high support of 1.1738. Currently testing the support level at 1.1800-1.1820, if the support is effective, the daily chart will form a double bottom support, and I will buy a small position in this area, expecting to capture a wave of rebound profits. Currently, the upward trend remains intact, and I will gradually buy on dips to start medium to long-term layout operations. I have in-depth research on futures products such as cryptocurrency, foreign exchange, stock market, gold, and crude oil. I also update some daily operational layouts. Thank you for your attention and likes, and friends with questions can leave me a message in time. I will give the most secure advice, and I hope to be helpful to you.
Long
by FlashTrades_
5
When will the AUDUSD stop falling? The decline in US bond yields dragged down the US dollar, with focus on Powell and the non-farm payrolls report; under the pressure of these two negative factors, the Australian dollar (AUD), also known as the Aussie, accelerated its decline against the US dollar (USD), breaking below the key level of 0.6700. Meanwhile, the New Zealand dollar (NZD) is still attempting to form a potential double-top pattern. The AUDUSD failed to rebound from the weakness of the USD, partly due to conservative growth expectations from China, Australia's largest trading partner, which dragged down the Aussie. Additionally, the Reserve Bank of Australia's (RBA) latest interest rate decision, which released a less hawkish and even slightly dovish stance, also weighed on the Aussie. Under these two negative factors, the AUDUSD accelerated its decline and is currently trading below the level of 0.6700. Looking at the daily chart, the market is still in a downtrend and is approaching the key support level of 0.6580, which is also the previous low point. If the support test is effective, the downtrend may successfully stop and lead to a good upward trend. Personal trading recommendation: Enter a long position with a small amount at the level of 0.6580-0.6600, with the first target at 0.6800 and the second target at 0.7000. I have in-depth research on futures products such as cryptocurrencies, foreign exchange, stocks, gold, and crude oil, and I also update some daily trading strategies. Thank you for your attention and likes, and if you have any questions, please feel free to leave me a message. I will provide the most reliable advice to help you.
Long
by FlashTrades_
USD/JPY: Bullish trend to continue Keep an eye on US Treasury yields, as the two-year US bond yield rose to 5.085%, the highest in Asia, and currently stands at 5.062%; the Nikkei index closed up 0.5% at 28444.19 points. The USD/JPY rose to 137.90 and then retreated, but still remains bullish; The USD/JPY rose from the morning low of 137.10 in Asia to the highest of 137.90, and then softened slightly, but still leans towards an upward trend; Stop loss is set above the strike price of 138.00 for large options, some of which will expire tomorrow. The USD/JPY is expected to test 138.00 and the high point of December 15th; Given yesterday's big rise, some pullback is not surprising. However, Japanese importers and other participants are waiting for the pullback to buy back in. It is also recommended to wait for a correction after the pullback to continue buying, with a buying point of 136.40. I have in-depth research on futures products such as cryptocurrencies, foreign exchange, stocks, gold, and crude oil, and I also update some daily operation layouts. Thank you for your attention and likes. Friends with questions can leave me a message in time, and I will give the most reliable advice. I hope I can help you.
Long
by FlashTrades_
2
Can GBPUSD go long? On Friday, March 3rd, the GBPUSD rose 0.7% to $1.2032. The final reading of the February Services Purchasing Managers' Index (PMI) from the IHS Markit/CIPS rose to 53.5, higher than January's 48.7 and the initial February reading of 53.3, marking the strongest growth since June last year. The data has increased investor expectations that UK interest rates will continue to rise after March. The Bank of England's main interest rate is expected to peak at 4.75% in August, higher than the current 4.0%, and higher than the expected peak of around 4.0% a month ago. With support from this rate hike expectation, investors believe that the interest rate differential between the pound and the euro and the US dollar will not widen too much, and the pound may not be excessively impacted and fall into an extremely weak position. From a technical perspective, the daily chart is oscillating around the lower bound of the range of 1.1914-1.2180 in February, lacking direction. The 4-hour chart is volatile, with support at 1.1920 and resistance at 1.2140. On the hourly chart, the downtrend stabilizes above the previous low of 1.1920, forming an effective support for the "W" double bottom, with a further rebound tendency. Previously, we entered long positions near 1.1920, and we have made short-term profits. There will be opportunities for re-entry during the subsequent adjustment. Personal operational recommendations: Enter long positions at 1.1920-1.1950, with the first profit-taking target at 1.2150 and the second profit-taking target at 1.2270. I will continue to update strategies for friends' reference in the future. Thank you for your support and attention.
Long
by FlashTrades_
During the Super Data Week, will XAUUSD drop to 1804? Powell will testify before the Senate Banking Committee on Tuesday on the Fed's semi-annual monetary policy report. He will then testify before the House Financial Services Committee on the same topic on Wednesday. The market will also digest the latest non-farm payroll report for February, which is widely expected to add 200,000 jobs, with an unemployment rate of 3.4%. The upcoming testimony of Fed Chairman Powell and the February employment report will guide the direction of precious metals. The February employment report and Fed Chairman Powell's testimony in Congress this week should clarify whether recent comments about "continuing higher interest rates" are justified. In the short term, gold is still heavily dependent on data and the trend of the US dollar. If the Fed ultimately decides to raise interest rates, the trend of gold will be suppressed, and there will be a wave of downward movement. Looking at the hourly chart of XAUUSD, the current trend is running within the range of 1840-1860. It is expected that the overall trend will not form an effective breakthrough before explosive news comes out. Therefore, there is a demand for a decline when the trend reaches around 1860. Short-term traders can operate by selling high and buying low in this range. This week is the Super Data Week, with CPI, PPI, ADP, and NFP data, and the release of each data will directly affect the trend of gold, and is also the key to breaking the oscillation range. Personally, I will continue to pay attention to the release of data and the speeches of the Fed, and provide friends with the latest operational ideas. Thank you for your attention and support.
OANDA:XAUUSD
by FlashTrades_
1
How to allocate your funds for profit? There are no wasted paths in life. All your efforts now either earn experience, knowledge, or wealth. As the Chinese saying goes, "Don't put all your eggs in one basket." This is because if you accidentally drop the basket, all the eggs will break. This principle applies to investment markets as well. It is recommended to avoid concentrating all funds into one type of investment, as it could lead to uncontrollable risk. So, how can we allocate our funds sensibly? Here are three investment types to consider: Cryptocurrencies After the emergence of countless "get-rich-quick" stories in the cryptocurrency market, many people have flocked to invest. However, the reality is that the market is merciless and risky. Only those who are strategic and opportunistic can make a profit. It is recommended to invest 10% of your funds into the market for a coin with a lower price point, and hold it for the long-term. If the value increases, your assets will expand infinitely. If it fails, you won't lose everything. Forex Market To participate in the forex market, choose currency pairs with lower liquidity, such as EURUSD, USDJPY, and GBPUSD. When these products show good buying opportunities, it is recommended to invest 50% of your funds into the market. The fluctuation of currency pairs is relatively small, making it a stable option for long-term trading. However, it requires a certain amount of capital accumulation to see profits. Futures Market In this market, let's focus on XAUUSD. This product has storage value internationally, making it suitable for trading. However, due to its sensitivity to news and geopolitical events, it can experience severe fluctuations. It is recommended to invest 20% of your funds into the market for short-term operations. Trading once or twice a day to gain short-term profits is the suggested approach. The remaining 20% of your funds can be used for your daily expenses. Trading is not gambling. It is important to learn how to plan within your capabilities, manage your finances wisely, and make trading easier. I have extensive knowledge in cryptocurrencies, forex, stocks, gold, and crude oil futures products. I will continue to update my daily operation strategies. Thank you for your attention and likes. If you have any questions, please feel free to leave a message. I will provide the most reliable advice to help you.
FX:XAUUSDEducation
by FlashTrades_
How important is liquidity in the forex In the foreign exchange market, understanding liquidity and volatility is crucial for investors, as liquidity refers to the level of trading activity and volatility is highly influenced by liquidity. If liquidity is too poor, it can lead to significant price fluctuations, making it difficult for investors to manage risks. What is liquidity, and why is it important? Liquidity can be used to observe the level of activity in the foreign exchange market, specifically how many buy and sell orders are actively traded. The foreign exchange market is a 24-hour trading market, with a daily trading volume of nearly $6 trillion, making it one of the most liquid markets in the world. However, it is worth noting that not all currency pairs have excellent liquidity in the foreign exchange market. In fact, currency pairs often have varying degrees of liquidity depending on whether they are major, minor, or exotic currency pairs. Liquidity decreases in the order of major currency pairs -> minor currency pairs -> exotic currency pairs. What are the major currency pairs with the "best" liquidity? EURUSD The euro against the US dollar is the most actively traded currency pair in the foreign exchange market due to the eurozone and the US being the two largest economies globally. Due to the enormous trading volume of the EURUSD currency pair, it also has high liquidity, making its volatility usually lower than other currency pairs. However, even the most liquid instruments can experience significant price swings under certain conditions, such as the outbreak of the Covid-19 pandemic in March 2020, when the Fed implemented zero interest rates and unlimited QE, causing the EURUSD to surge instantaneously, one of the high volatility scenarios. USDJPY The US dollar against the Japanese yen is the second most traded currency pair in the foreign exchange market, second only to the EURUSD. The USDJPY currency pair also has high liquidity because during periods of economic uncertainty or financial market turmoil globally, the Japanese yen is widely regarded as a "safe-haven currency." Thus, market funds are easy to flow into buying the Japanese yen, often resulting in a significant increase in trading volume of the USDJPY currency pair. GBPUSD The British pound against the US dollar currency pair is also known as "Cable" because GBPUSD was the first currency pair to be traded via transatlantic communication cables. The UK and the US are two major Western economies with close trade relations, making the trading volume of GBPUSD also massive. What are the "lowest" liquidity exotic currency pairs? Exotic currency pairs usually have the lowest liquidity, such as the Polish zloty against the Japanese yen. As the economic trade volume between Poland and Japan itself is not high, the delivery demand or hedging risk demand of the two currencies is relatively small. Therefore, exotic currency pairs usually have low liquidity. Does the liquidity of the forex market vary during different trading sessions throughout the day? In daily forex trading, there are periods of low activity, such as during the Asian session when prices tend to consolidate. However, during the London and US sessions, prices are more likely to experience significant fluctuations. Among the trading sessions throughout the day, the US morning session has the best liquidity, as it overlaps with trading hours in Europe and London. The forex trading volume during the European and London trading sessions accounts for over 50% of the daily global trading volume, with the overlapping period with the US morning session accounting for approximately 20% of the total daily trading volume. The volatility of forex is directly influenced by liquidity. Liquidity has a significant direct impact on market price volatility in all financial markets, including the forex market. High liquidity markets have higher trading volumes and therefore lower volatility, resulting in more stable commodity prices. In contrast, low liquidity markets have lower trading volumes, higher volatility, and commodity prices are more likely to experience significant fluctuations. As a professional with in-depth knowledge of futures products such as cryptocurrencies, forex, stocks, gold, and crude oil, I regularly update my trading strategies. Thank you for your support and likes, and please feel free to leave me a message if you have any questions. I will provide you with the most reliable advice and hope to be of help to you.
Education
by FlashTrades_
1