Blog

AUDCHF BUY LIMIT

AUDCHF BUY LIMIT

Entry: 0.7084

Take Profit 1: 0.7124

Take Profit 2: 0.7144

Stop Loss: 0.7054

PICK UP THE SIGNAL AT YOUR OWN RISK

EURAUD SELL STOP

EURAUD SELL STOP

Entry: 1.60257

Take Profit 1: 1.5945

Take Profit 2: 1.5925

Stop Loss: 1.6075

PICK UP THE SIGNAL AT YOUR OWN RISK

Weakness Prevails In GBPUSD Prior To Important British Data

GBPUSDDaily_11022019

With a fortnight long descending trend-line aptly portraying GBPUSD weakness, traders await headline UK Q4 2018 GDP figures in order to register much moves. Presently, 100-day SMA level of 1.2890 becomes immediate support for the pair, breaking which 1.2850 and an upward slanting trend-line at 1.2825 seem important to watch. If at all the pair drops beneath 1.2825, the 50-day SMA level of 1.2810 may offer intermediate halt to its plunge to 1.2700 round-figure.

On the upside, a D1 close beyond 1.2960 trend-line becomes necessary for the pair to aim for 1.30000 resistance level. Also, pair’s successful trading past-1.3000 enables it to challenge the 1.3055 and the 1.3130 numbers to north.

Australian Dollar Declines Sharply After RBA Slashes Growth Forecast

Yesterday, Wall Street had its worst day this year after Donald Trump said he would not meet China’s Xi Jinping before the March deadline. This raised chances that a deal between the two countries on trade will not be made. This year, the two countries have been holding meetings to iron out key issues on trade. However, reports show that no major progress has been made on the issues of intellectual property and forced technology transfer. If there is no deal between the two countries by March 1, the US will add more tariffs on Chinese goods.

The Australian dollar declined today after the RBA lowered the economic forecast for the year. This week, the Aussie has declined sharply even after the initial hawkish statement from the RBA. After the meeting, the central bank brought the possibility of a rate cut if the economic conditions weaken. The lowered guidance by RBA comes a day after the European Commission and the BOE lowered the guidance for the EU and UK respectively. A few weeks ago, the IMF lowered the global growth forecast as well.

The Japanese yen was little moved after the release of key numbers from the country. In December, household spending increased by 0.1%, which was better than the contraction of -0.6% in November. It was, however, lower than the expected 0.8%. On a MoM basis, spending declined by -0.1%. The adjusted current account for the country was 1.56 trillion yen, which was better than the expected 1.52 trillion yen. Wages increased slightly to 1.8% from the previously released 1.7%.

EUR/USD

The EUR/USD pair declined slightly in overnight trading and reached an intraday low of 1.1335. This was slightly higher than yesterday’s low of 1.1325. On the hourly chart, the pair is below the 25-day and 50-day EMAs. The RSI has flattened along the 43 level while the volume-adjusted RSI has risen to the 40 level. The pair could continue to decline especially after the reduced EU growth forecast.

1-39-600x272

AUD/USD

The AUD/USD pair declined sharply after the RBA lowered the economic forecast. The pair reached a low of 0.7057, which was the lowest level since January 10. On the daily chart, the pair is along the upper line of the equidistance channel shown below. This price is also slightly below the 25-day and 50-day EMA. There is a likelihood that the pair will continue moving lower to test the important support of 0.7000.

2-34-600x272

USD/JPY

This year, the USD/JPY pair has been in consolidation mode, with the price remaining within a narrow channel. The pair is now trading at 109.77. On the daily chart, this price is along the 25-day EMA and below the 50-day and 100-day EMAs while the RSI has been largely unmoved at the 47 level. This consolidation could lead to a sharp movement in either direction in the coming few days.

3-30-600x272

WHY FOREX TRADING INSTEAD OF STOCKS ?

image_1afa4815-7609-49fa-a137-cd212bbfe80b20190130_172541

why Forex Trading Instead of Stocks? You’ve probably asked yourself this question whenever you wanted to invest your money in the markets. The foreign exchange industry is one of the biggest financial markets in the world. Unlike stock markets, forex markets have no exact tangible location. 

At first, forex trading was only available to the hedge funds, which meant that it was not open to any retail trader. However, over the years, technological advancements have made forex trading available to normal investors and retailers. On the other hand, Stock trading has always been readily available for traders even before foreign exchange came into existence. In this article, well discuss why you should trade currency on the foreign exchange market instead of trading stocks.

  • Number of Trading options

The core reason why forex trading is better than stock market trading is the number of options one can invest in. Forex exchange has very few options to invest in, which means that there are very few key players that determine the market and exchange rates. Forex exchange is also less prone to sudden swings compared to stock trading.

  • 24-hour market

The foreign exchange market is always open for business. This is a huge advantage for new investors and investors who like trading during their spare time. With forex trading, you don’t have to adjust your schedule to create spare time for trading. Rather, you can decide to trade whenever you feel like, even if its 2 am in the morning.

  • Low transaction costs

Forex trading has no hidden charges. Instead, all the fees are included in the trade or the spread

  • Leverage and margin

Since forex traders trade on margin, they have significant leverage in their trading. Significant leverage means that you can make extraordinary profits from reasonably small investments. However, one needs to use these leverages carefully since they can cause as much harm as profit

  • Fast trade execution and High liquidity

Forex trading is done in cash, and no investment ’s more liquid than cash. In forex trading, trades are performed instantaneously. You won’t have to sit around waiting for your trade to execute.

  • Not easily swayed

The foreign exchange market is so large to be easily influenced by any individual, bank, broker, Ngo, fund, or government entity. This is not the case with the stock market where any negative appraisal by a statistician or analyst can significantly hurt all the investors.

  • Small sample to Monitor

With forex trading, one has only seven major currencies to monitor, compared to the thousands of companies and stocks one has to watch out for in the traditional stock market trading. This means that you have more time to focus on just those exchanges you trade in. Most successful forex traders don’t even trade in all the seven; they only focus on two, three or four currencies. Narrowing your focus can really improve your focus and decision making. If done correctly with lots of patience, this will increase your success remarkably.

  • No bear/ bull markets

Since you can trade in short or long intervals in forex trading, you will still make money irrespective of whether prices drop or rise, as long as you predict correctly. Because of this, forex trading gives the user more control over his decision than in the stock market, where the market is very unpredictable in most cases.

  • Brokers

To trade in forex, someone needs a trusted broker to open account like mtrading.com – in fact, several successful individual traders have consistently made profits from online foreign exchange via broker. Most of these traders will tell you that the key to success in forex trading lies in the ability to correctly interpret statistics and data in the market, and use the findings to exploit the market for profit. Forex trading also has software that truly levels the playing field, thus giving individual trader’s an advantage in the currency trading market place. 

In summary, Forex Trading has a wide range of investments compared to the stock market. This makes it easily manageable and predictable, compared to managing and predicting stocks. The ability to predict market swings and making correct decisions is the key to success in any type of investment. In actuality, forex trading is far more advantageous than trading with stocks, especially in this economy.