EUR/USD has edged higher in the Monday session

EUR/USD has edged higher in the Monday session. Currently the pair is trading at 1.1815, up 0.45% on the day. On the release front, it’s a very quiet start to week, so we’re unlikely to see any significant movement from the pair on Monday. There are no US releases, and the sole euro zone event is the Deutsche Bundesbank monthly bulletin. On Tuesday, Germany releases ZEW Economic Sentiment, which is expected to slow to 15.3 points.
The euro took a dip on Thursday, following a terrorist attack in Barcelona, which killed 13 and wounded dozens. EUR/USD dropped below the 1.17 line and touched 3-week lows. However, the euro has quickly recovered, and is trading at 1.18. Barring any geopolitical crises, such as another terrorist attack, we can expect a few slow days until the Jackson Hole summit on Wednesday. Both the ECB and Federal Reserve find themselves pursuing a less accommodative monetary policy, and the markets will be listening closely to Janet Yellen and Mario Draghi. Will Yellen hint at a December rate hike? Will Draghi provide clues regarding the windup of the ECB’s asset-purchases program? Any comments in this vein could be seized upon by the markets and trigger strong movement by the euro. This was the case in June, when Draghi spoke at a central bankers meeting in Portugal, and his upbeat comments about the euro zone economy sent the euro soaring.

Gold prices fall

Gold prices fall into negative territory on reports that President Donald Trump's chief strategist Steve Bannon has left the White House. Gold for December delivery was recently down 0.1% at 1,291.40 after earlier hitting its highest level since November at $1,306.90. The Barcelona terror attack and uncertainty about the Trump administration's fiscal agenda had been supporting prices. Some say the long-term backdrop for gold is still positive even after the Bannon news. "I wouldn't read too much into that," said Bill O'Neill, co-founder of LOGIC Advisors. "There's still a myriad of potential events that can happen down the line that should prove bullish for gold,"

Trading traps in the stock markets Supply and Demand

The next and most important point is that often times right above or below these new highs and lows are supply and demand levels which act as repellants to those new buyers or sellers.  If you look closely inside those larger time frame candles you will discover those pockets of buy and sell orders just waiting to get filled. This saying references the notion that when the market looks very good, this is usually when it blows up.  This is not limited to going long; shorts also find huge reversals to the upside just when the market looks as though it’s ready to fall off  and head down. You will see this time and again as the markets are full of traps that the unsuspecting new trader is prone to falling prey to. The cycles will be more stable on longer term charts, but knowing the cycle can assist you in your trading.  If you see price approaching a supply or demand level but the cycle is not indicating a top or bottom, the level may have a higher probability of breaking.  But if the cycle top or bottom is near, the levels are more likely to hold.

VIX Trading

The VIX is related to the S&P 500 if the 500 drops sharply the Vix futures tends to go up. Most of the time the same is true if the S&P 500 is going up the VIX futures tend to go down.  This is not always the case but more often then not this holds true. VIX futures have been offered on the CBOE Futures Exchange since 2004. Since the Chicago Board. Options Exchange (CBOE) introduced futures and, subsequently, options on its Volatility Index, or VIX. At a quoted price of $12.1, one VIX futures contract is worth $12,100. Settlement. CBOE VIX futures are cash-settled and so, unlike futures on commodities. The VIX futures are very different from other index futures in that there prices are determined by a cost of carry but rather the market anticipation of the thirty day overall implied volatility of the SPX options will be at the VIX futures expiration. Many time traders will see the VIX futures trading above the VIX index other times it will be below.
 
  This can be an indication of the market's fear or complacency about the overall market action in the months ahead. Traders need to be aware if they trade the VIX futures that it does not always move in the same direction as the VIX index. Yhe VIX fitures will move close to the S&P 500 futures cash index. VIX is traded on the CBOE futures exchange and one point is worth one thousand dollars and the mini tick is worth .05 or fifty dollars. Vix futures are related to the S&P 500 because of the vix index itself is based on the SPX option prices.

  They are also used to value options on the vix index even though those are cash settled. The VIX futures and VIX are settled on the same day. The Wednesday that is thirty days prior to the third Friday of the calendar month. One thing is for sure a trader needs to learn how to trade this type of index or he will quickly wipe out their trading account. At most brokerages you have to apply to trade this type of index. This type of futures trading is very speculative and is not for all investors. Traders need to learn how to do this type of trading

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