[FOREX NEWS] EUR/USD lower after Spain cracks down on Catalonia

Over 800 people needed medical assistance after the Spanish police used force to prevent Catalans from voting in an independence referendum. The poll, deemed illegal by Spain’s constitutional court, resulted with 90% support for breaking away, but turnout was low, around 42%. The European Union said that the conflict was internal and markets had largely [...]

The post EUR/USD lower after Spain cracks down on Catalonia appeared first on Forex Crunch.

via Forex Crunch

[FOREX TIP] Weekly Forex News Events for EURUSD – 2nd to 6th Oct 2017

EURUSD started the last week with huge gap for German election. It seems that the gap had played a vital role in the market as well. It is time for the EURUSD traders to get their plan ready about next week’s high impact news events. Let us have a look at high impact news events are to take place in the week ahead that might create huge volatility on the pair.

Monday- 2^nd October- 14.00 GMT

• ISM Manufacturing PMI

It often ends up producing spikes on the intraday charts. Thus, EURUSD traders should be careful with their intraday floating positions before this news event takes place.

Wednesday-4^th October-12.15 GMT

• ADP Non Farm employment change

EURUSD intraday traders could use the volatility in their favour, which is caused by this news event.

Wednesday-4^th October-14.00 GMT

• ISM Non-manufacturing PMI

It often ends up producing spikes on the intraday charts. Intraday traders should come out with their floating positions before this news event.

Wednesday-4^th October-14.30 GMT

• Crude oil inventories

This could make the pair very volatile. Thus, better be careful as far as intraday trading is concerned.

Thursday-5^th October- 12.30 GMT

• Unemployment claims

This is a news event, which comes with many opportunities. EURUSD traders should keep their eyes on the impact of this news event and take entries once the news event is finished.

Friday- 6^th October- 12.30 GMT

• Average hourly earnings m/m
• Nonfarm employment change
• Unemployment Rate

If you are a EURUSD trader, take a note on your notebook that this day is going to be extremely volatile. Big time frame traders will surely keep their eyes on these news events to take their entries of the month.

The post Weekly Forex News Events for EURUSD – 2nd to 6th Oct 2017 appeared first on Advanced Forex Strategies.

from Advanced Forex Strategies

[FOREX NEWS] EUR/USD: 3 Technical Bearish Signals Support Short Trade – BofAML

EUR/USD fell to the lowest levels in a month but managed to recover.  What’s next? Here is their view, courtesy of eFXnews: On August 31, Bank of America Merrill Lynch FX Strategy Research Research opened a short EUR/USD spot trade from 1.1891 on that ground fundamentals, quant and technicals argued for a decline. “EUR/USD has traded around [...]

The post EUR/USD: 3 Technical Bearish Signals Support Short Trade – BofAML appeared first on Forex Crunch.

via Forex Crunch

[FOREX NEWS] German IFO Business Climate : EUR/USD unaffected

An unexpected fall in German business confidence according to the IFO institute.
Business climate fell to 109.8 points.

The Business Expectations figure dropped to 103.2 and only the Current Assessment measure came out within expectations at 116.9 points.

All in all, we see the worries about the future but no change in the current situation. EUR/USD seems to [...]


via Forex Crunch

[FOREX NEWS] German PMIs mixed – EUR/USD wobbles

Markit’s manufacturing PMIs for Germany beat early estimations by hitting a score of 56.5. However, the services sector came out at 53.2 points, below expectations. The composite is slightly lower than forecast. EUR/USD holds its ground and does not go very far in the immediate aftermath. The first purchasing managers’ indices from Germany were expected to remain in [...]


via Forex Crunch

[FOREX FORECAST] EURUSD Weekly – 23rd to 27th Jan 2017

EURUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

Technical Outlook: EURUSD has been trading within 1.0700 and 1.0600 last week with another brief test to the support level at 1.0615 – 1.0600. However, this multiple bounce to the support has failed to bring any significant new highs in prices. The bullish flag pattern remains in play although there is scope for EURUSD to correct to the downside in the near term especially after price has broken out from the rising median line. Look for a reversal near 1.0700 in EURUSD which could mean a short term correction back to 1.0615 – 1.0600. A break below this support will extend the declines towards 1.0450. To the upside, if price continues to push higher, then watch for a continuation towards 1.0785, marking the completion of the bullish flag pattern.

Fundamental Outlook: It is a fairly quiet week for the eurozone with most of the economic data focusing on the flash PMI figures. Economists are expecting to see a broad pickup in activity across the board, which is likely to see further evidence of a recovery in the eurozone’s economy. Besides the flash PMI figures, the Ifo business climate data is also coming out this week and is expected to show another positive reading which will also point to the improving economic sentiment in Germany and the Eurozone. With no major market moving events coming up next week, the EURUSD is likely to take its clues from the larger market themes.

Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

from Advanced Forex Strategies

[FOREX TIP] Next week events to eye for EURUSD

Weekly Forex News Events for EURUSD – 23rd to 27th Jan 2017

The last week was a bullish week for EURUSD. Traders had to face news events that could have made the pair volatile. However, the pair did not get as volatile as it could have gotten. EURUSD traders have to encounter some high impact news events in the week ahead as well. Let us have a look what they are.

Monday- 23^rd January- 23.30 GMT

• ECB president Draghi speaks

An important news event, which has to be dealt accordingly by EUROUSD traders. ECB president Draghi’s speech can make this pair be extremely volatile. Schedule of the speech is unusual though. However, it is better to be safe than sorry.

Wednesday-25^th January- 15.30 GMT

• Crude oil Inventories

This is a high impact data release event. It has a tendency to produce huge spike as far as intra-day charts are concerned.

Thursday- 26^th January- 13.30 GMT

• Unemployment claims

This is the news event, which should be taken extra care by EURUSD traders in the week ahead. “Unemployment claims” data has been doing well for the USD. The forecast is 247 K for the next week. Last three weeks average claim is 238 K. It gives us a hint that the original claim might be less than the forecast. If it really is, then the USD is going to get some fuel to show its strength. Obviously, it could go another way as well. This means EURUSD pair will get volatile at the time of this news event next week.

Friday-27^th January- 13.30 GMT

• Advance GDP q/q
• Core durable Goods orders m/m

These two data release events could make the pair be volatile as well. In fact, to finish a week off with these two high impact news events, traders of the EURUSD pair should be very careful with their intra-day position.

from Advanced Forex Strategies

[FOREX 101] Currencies come in pairs

To make matters easier, forex markets refer to trading currencies by pairs, with names that combine the two different currencies being traded, or “exchanged,” against each other.

Additionally, forex markets have given most currency pairs nicknames or abbreviations, which reference the pair and not necessarily the individual currencies involved.


Major currency pairs

The major currency pairs all involve the U.S. dollar on one side of the deal. The designations of the major currencies are expressed using International Standardization Organization (ISO) codes for each currency. Table 2-1 lists the most frequently traded currency pairs, what they’re called in conventional terms, and what nicknames the market has given them.

EUR/USD Eurozone*/U.S. Euro-dollar N/A
USD/JPY U.S./Japan Dollar-yen N/A
GBP/USD United Kingdom/U.S. Sterling-dollar Sterling or Cable
USD/CHF U.S./Switzerland Dollar-Swiss Swissy
USD/CAD U.S./Canada Dollar-Canada Loonie
AUD/USD Australia/U.S. Australian-dollar Aussie or Oz
NZD/USD New Zealand/U.S. New Zealand-dollar Kiwi

* The Eurozone is made up of all the countries in the European Union that have adopted the euro as their currency.


Major cross-currency pairs

Although the vast majority of currency trading takes place in the dollar pairs, cross-currency pairs serve as an alternative to always trading the U.S. dollar. A cross-currency pair, or cross or crosses for short, is any currency pair that does not include the U.S. dollar. Cross rates are derived from the respective USD pairs but are quoted independently.

Crosses enable traders to more directly target trades to specific individual currencies to take advantage of news or events.

For example, your analysis may suggest that the Japanese yen has the worst prospects of all the major currencies going forward, based on interest rates or the economic outlook. To take advantage of this, you’d be looking to sell JPY, but against which other currency? You consider the USD, potentially buying USD/JPY (buying USD/selling JPY) but then you conclude that the USD’s prospects are not much better than the JPY’s. Further research on your part may point to another currency that has a much better outlook (such as high or rising interest rates or signs of a strengthening economy), say the

Australian dollar (AUD). In this example, you would then be looking to buy the AUD/JPY cross (buying AUD/selling JPY) to target your view that AUD has the best prospects among major currencies and the JPY the worst.

The most actively traded crosses focus on the three major non-USD currencies (namely EUR, JPY, and GBP) and are referred to as euro crosses, yen crosses, and sterling crosses. Table 2-2 highlights the most actively traded cross currency pairs.

EUR/CHF Eurozone/Switzerland Euro-Swiss
EUR/GBP Eurozone/United Kingdom Euro-sterling
EUR/JPY Eurozone/Japan Euro-yen
GBP/JPY United Kingdom/Japan Sterling-yen
AUD/JPY Australia/Japan Aussie-yen
NZD/JPY New Zealand/Japan Kiwi-yen