EUR/USD 5/11

EUR/USD continues to drift, as the pair is unchanged this week. Currently, the pair is trading at 1.1189, down 0.03% on the day. On the release front, there are no German or eurozone events. The U.S. releases PPI and Core PPI, both of which are expected to slow to 0.2%. Unemployment claims are forecast to drop sharply to 215 thousand, after a reading of 230 thousand in the previous release. As well, Federal Reserve Chair Jerome Powell speaks at an event in Washington. On Friday, Germany releases trade balance and the U.S. posts consumer inflation reports.

AUD/USD has ticked higher in the Wednesday

AUD/USD has ticked higher in the Wednesday session. Currently, the pair is trading at 0.7003, up 0.08% on the day. On the fundamentals front, there are no Australian releases. China posted a trade surplus of 94 billion yuan ($13.8 billion), in April, well short of the forecast of 235 billion yuan ($33.7 billion). On Wednesday, Chinese CPI is projected to improve to 2.5% in April. In the U.S., there are no key events until Thursday, with the release of producer price index reports and unemployment claims. The RBA issues its monetary policy statement, which is released quarterly.
The trade war between the U.S. and China has taken a heavy toll on the Chinese economy. China’s trade surplus fell sharply in April, dropping from 221 billion yuan to 94 billion ($32.6 billion to $13.8 billion). As well, Chinese exports declined 2.7% in April, on a year-to year basis. This was a sharper drop than the estimate of a 2.3% decline. A slowdown in China has damaged the Australian economy, as China is Australia’s number one trading partner.

AUD/USD posted gains close to 1.0% on Tuesday

AUD/USD posted gains close to 1.0% on Tuesday, but has given up most of these gains. The sharp rise was in response to the unexpected decision by the Reserve Bank of Australia to hold rates at 1.50%. Other Australian releases were also positive. Retail sales slowed to 0.3%, beating the estimate of 0.2%. The trade surplus increased to A$4.95 billion, above the forecast of A$4.49 billion. In the U.S., there were no major events. JOLTS Job Openings improved to 7.49 million, beating the estimate of 7.35 million.
The RBA held the course on Tuesday, surprising the markets, which had expected the bank to cut rates to 1.25%. The markets had priced in a rate cut at close to 50%, so the decision to hold rates helped boost the Aussie in the Asian session. However, AUD/USD was unable to consolidate and gave up most of these gains in European trade. The Australian economy has been damaged by the economic slowdown in China, which is Australia’s largest trading partner. Inflation fell to 0.0% in the fourth quarter, its lowest level in three years. This weak release raised speculation of a rate cut, but the RBA continues its wait-and-see stance, hopeful that the economy will find its feet without the help of a rate cut.
•0.6970 is a weak support level.
•0.7085 is the next resistance line
•Current range: 0.6970 to 0.7085

Australian and New Zealand dollars

The Australian and New Zealand dollars have started the week lower amid renewed US-China trade tensions, after President Trump said the current 10% tariff imposed on $200 billion of Chinese imports will lift to 25% on Friday. The yen has lifted in response. In July 2018, the US imposed a 25% tariff on $50 billion of imports from China. In September, the U.S. imposed an additional tariff of 10% on a further $200 billion of Chinese imports. The tariff on the latter $200 billion was set to lift to 25% on Jan. 1, but the increase was delayed until March 1 and then delayed again because talks were progressing. The threatened increase from this week poses a fresh threat to global growth and hopes of a rebound in the second half of 2019. Professional Techniques For Short-Term Currency Trading

Risk Management is protecting gains

Risk Management is protecting gains on your FX trades. You need to know what your exit strategy is, this is an element of risk management. When a forex trade is in the money, the Forex trader need to manage the money with correct stop loss orders. The worst thing a the trader can do is allow a profitable position to reverse and become a losing position. When looking at any system for use in your currency trading, you must ensure that your risk management is in place on your currency trades. If risk management is not present then you are at risk to keep having losing trades.

 Many new Forex traders make simple trading mistakes. Traders will take too large of a position and expose their accounts to serious and big losses should the pairs move against them. Traders also fail to protect the money in their trading account by allowing a large trade to put their trading account balance at risk. Risk management should involve the maximum risk with the least amount of account exposed to loss.

The most powerful patterns for Forex traders