Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Tuesday, June 11, 2019
AUD/USD is showing little movement
Monday, June 10, 2019
GBP/USD has posted
GBP/USD has posted considerable losses in the Monday session. Currently, GBP/USD is trading at 1.2685 down 0.41% on the day. On the release front, British numbers were unexpectedly soft. Monthly GDP dropped 0.4% in April, its second straight decline. There was no relief from Manufacturing Production, which plunged 3.9% in April, much weaker than the forecast of -1.1%. This was the largest decline since June 2002. In the U.S., there are no major events. JOLTS Jobs Orders slowed to 7.45 million, shy of the estimate of 7.50 million. On Tuesday, the U.K. releases wage growth and unemployment rolls, while the U.S. posts Producer Price Index reports.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
Wednesday, June 5, 2019
EUR/USD
EUR/USD has posted winning sessions for three successive days, and the upward trend has continued on Wednesday. Currently, the pair is trading at 1.1284, up 0.26% on the day. On the release front, German and eurozone services PMIs beat expectations, with scores of 55.4 and 52.9, respectively. Eurozone retail sales dropped 0.4%, its first decline in four months. In the U.S., ADP nonfarm payrolls is expected to drop to 185 thousand in May, after a sparkling gain of 275 thousand in April. ISM Non-Manufacturing PMI is projected to show strong expansion, with an estimate of 55.6. On Thursday, the ECB is expected to maintain its key interest rate at a flat 0.00%. In the U.S., the key event is unemployment claims.
Tuesday, June 4, 2019
GBP/USD has posted slight gains
GBP/USD has posted slight gains in the Tuesday session. Currently, GBP/USD is trading at 1.2689, up 0.20% on the day. On the fundamentals front, British Construction PMI disappointed, with a score of 48.6, indicating contraction. This missed the estimate of 50.6 points. In the U.S., the sole event was Factory Orders. The indicator declined by 0.8%, above the estimate of -1.0%. This marked the second decline in three months. On Wednesday, the U.K. releases Services PMI.
British PMIs, which are key gauges of the economic activity, dropped into contraction territory in April. Construction PMI fell to 48.6, its third decline in four months. This followed a manufacturing PMI of 49.4, marking the first contraction since July 2016. Manufacturing news from the U.S. also disappointed, as ISM Manufacturing PMI slowed to 52.1, down from 53.0 a month earlier. This was the PMI’s weakest reading since November 2018. Global demand has fallen off due to trade tensions, and unless this situation improves, manufacturing in the U.K and the U.S. could continue to head downwards.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
British PMIs, which are key gauges of the economic activity, dropped into contraction territory in April. Construction PMI fell to 48.6, its third decline in four months. This followed a manufacturing PMI of 49.4, marking the first contraction since July 2016. Manufacturing news from the U.S. also disappointed, as ISM Manufacturing PMI slowed to 52.1, down from 53.0 a month earlier. This was the PMI’s weakest reading since November 2018. Global demand has fallen off due to trade tensions, and unless this situation improves, manufacturing in the U.K and the U.S. could continue to head downwards.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
Monday, June 3, 2019
upcoming trend is to sell EUR/JPY
Safe-haven currencies are likely to strengthen, led by the Japanese yen because "U.S. growth fears decisively challenge high asset valuations," says Societe Generale. The best way to take advantage of this upcoming trend is to sell EUR/JPY, it says and advises going short at 121 for a target of 115, with a stop loss at 123.50. Moreover, "growth expectations remain the core forex driver, and Japan's 1Q GDP was a positive surprise. A tighter spread between eurozone and Japanese GDP forecasts should directly anchor EUR/JPY." EUR/JPY is last up by 0.4% at 121.40.
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