The Australian dollar was under pressure for long days and eventually slipped under the 0.75 level. But now, it certainly has reasons to rise. Australia reported a gain of no less than 60.9K jobs in the month of March. The outcome handily beats 20K that was expected. 74.5K full-time jobs were gained while 13.5K were [...]
The post AUD/USD leaps on great jobs report, two other factors appeared first on Forex Crunch.
NZDUSD had been bearish on the minor frames. H4 and H1 traders were waiting for a solid trend on the pair. It seems that their waiting time is over. The pair produced a huge Engulfing H4 candle at a key Support level. Moreover, there have been two more H4 bullish candles after the Engulfing candle. These equations suggest that the pair might head towards the North according to the H4 chart. Let us have a look at the H4 chart…
NZDUSD Free Forex Trading Signals – 13th April 2017
As we see that 0.69200 level has become a strong level of support by producing that Engulfing H4 candle. A down trending Trend line got broken on its way as well. The price has gone up to 0.70000 so far. This might work as a resistance. If it does, then the price would be on consolidation. The level of 0.69810 might come and play an important role here. The level has the potential to be a level of support. This means we are going to wait to get an Engulfing H4 candle to be produced at 0.69810, which has to break the resistance level of 0.70000 to take a long entry.
Let us have a look at the summary of the trade…
Here we have not had the H4 reversal candle yet. Thus, the level of breakout and the level of Support might need some extra pips to be added. All we have to make sure is, H4 reversal candle and a breakout to take the long entry. Take profit does not need be adjusted though.
You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.
We hope that you enjoy our Free Forex Trading Signal today: NZDUSD Free Forex Trading Signals – 13th April 2017
The post NZDUSD Free Forex Trading Signals – 13th April 2017 appeared first on Advanced Forex Strategies.
The Most Common Technical Indicators and Analysis in Forex Trading
Understanding the price trend in forex trading is crucial in allowing traders decide whether to sell or buy. Technical indicators enable traders to predict and follow price trends. In this article, we will take a look at some of the common technical indicators in forex trading. These technical indicators include:
Pivot point analysis is based on the identification of different support and resistance levels. The support level is identified as a line whereby the price is fluctuating below it and cannot exceed this line for a relatively long period of time. Similarly, a support level is a line that the price fluctuates above but cannot go below it for a relatively long period of time. The levels obtained from the pivot point calculations are named R1, R2, R3, S1, S2, S3 and the center line is called the pivot line (primary line). The first three important levels are R1, S1 and the primary pivot line.
When trading with pivot points, two strategies can be followed: Bounded trading and breakout trading. In bounded trading, the trader looks the current pivot level of the price. If the price reaches a resistance level and begins to reverse, the trader can go short/sell the currency pair. Similarly, if the price reaches the support level and begins to reverse, the trader can go long/buy the pair. When the price reverses and reaches the next level, the trader can exit the trade.
On the other hand, breakout trade works on waiting until the price reaches the highest support or resistance level and then goes beyond it. If this occurs, then the trader can sell or buy because the price has gone beyond the highest level. When the price breaks the highest support or resistance level, it often goes down below or high above the support or resistance levels.
These indicators show how much the currency pair prices is changing during a certain period. RSI is a momentum oscillator that gauges the speed and change of price movements for a certain period; such as the total changes in the uptrend direction to the changes in the downtrend direction. It is calculated as a percentage. When the RSI goes above 50% it will indicate uptrend and when it goes below 50% it will indicate a downtrend.
The stochastic is similar to the RSI but it uses different calculations. It measures the current closing price in relation to the biggest price change during a given period. The stochastic defines the overbought and oversold areas in the price curve. When it is held above 80% for a long period, it is overbought and the price will plummet. When the stochastic is held above 20% over a relatively long period, it will indicate an oversold area and the price will surge.
Moving averages are a way to smooth the price curve from short-term fluctuations. This will give the trader a more lucid view of the price curve. This technical indicator works by taking the average of closing prices over a certain period of time. This period is determined by the forex trader when analyzing the curve. The average of closing prices is taken continuously over every period.
When trading with moving averages, traders can look at the moving average curve (which is drawn overlapped with the main currency price curve) and see if it is going high or low to determine the trend.
A more ingenious idea is to draw two moving average curves, one slow and one fast. The slow one will be averaged over a high number of periods while the fast one will be averaged over a low number of periods. When the fast curve crosses the slow curve, this will indicate a trend. When crossing from high to low, then the currency price is going down and vice versa.
The MACD indicator is calculated by subtracting the previous moving averages to obtain resultant moving averages i.e. the MACD is the difference between the last calculated moving averages. When the MACD is zero, it indicates a crossover, signaling a price trend. When the MACD is positive, it indicates the currency pair price is going up. When the MACD is negative, it indicates the currency pair is going down.
An important note about the above indicators is that none of them can be used exclusively and work efficiently. The trader must select a combination of the above so as to reliably analyze and predict the price trend. Each trader has their own strategy for doing this.
The post The Most Common Type of Technical Indicators and Analysis in Forex Trading appeared first on Advanced Forex Strategies.
The US dollar is falling quite freely as President Donald Trump says the US dollar is too strong. The move comes as the Administration refrains from labeling China as a currency manipulator. It seems that his comments come as a compensation to breaking his election promise. He says that he doesn’t want to blame China [...]
The post Trump Tumble: USD crashes as the President bashes dollar strength, supports low rates appeared first on Forex Crunch.
The Bank of Canada left interest rates unchanged as widely expected. While they expressed some opinions on bubbly housing markets, the team led by Stephen Poloz was mostly balanced. What’s next? Here is their view, courtesy of eFXnews: CIBC World Markets Research comments on today’s Bank of Canada policy decision, noticing that the BoC still leans [...]
The post CAD: BoC Still Leans Towards A Cup Half Empty View – CIBC appeared first on Forex Crunch.
