The fallout from Friday’s disappointing US non-farm payrolls has triggered a cascade of bearish momentum in USD/JPY, exacerbated by shifting monetary policies. As the global stock sell-off deepens and panic sets in, we take a closer look at USD/JPY, which stands as a barometer of broader market sentiment.
USD/JPY Under Pressure
USD/JPY has been driven lower...
In Part 1, we explored a trend continuation strategy for swing trading. Now, let's shift our focus to a reversal strategy that targets market turning points using a fakeout pattern. This method capitalizes on failed breakouts, providing opportunities to trade reversals at key resistance levels.
Strategy Overview
Objective: Identify and trade reversals at...
GBP/USD is undergoing a steady pullback from its July 17th highs. Let’s explore how trend continuation traders can use technical indicators and multiple timeframes to refine their entry timing into GBP/USD’s pullback.
Daily Timeframe: Identifying a Confluent Support Zone
GBP/USD’s daily candle chart shows that the market has been in an uptrend since the...
The FTSE 100 has broken out of a wedge pattern that had been forming for over 10 weeks. Let’s explore the trading opportunities this breakout has created.
Breakout Follows Fakeout
Since mid-May, the FTSE 100 had been consolidating within a tightening trading range or wedge. After weeks of small daily ranges and choppy sideways price action due to low summer...
In this two-part series, we’ll explore straightforward yet effective swing trading strategies. Part 1 focuses on a classic trend continuation strategy designed to capitalise on established market trends.
Understanding the Trend Continuation Strategy
The trend continuation strategy is built on the principle of trading in the direction of the prevailing trend....
Tesla's share price is coiling within a symmetrical triangle pattern as the electric vehicle giant gears up to release its Q2 2024 earnings. Let's explore how to trade this setup effectively ahead of the highly anticipated earnings report.
Understanding the Current Trend
Tesla’s prevailing trend is bullish, following a two-legged recovery from the April...
Let’s examine two, simple yet significant price patterns that have occurred simultaneously in the gold market across two separate timeframes.
Daily Candle Chart Analysis: Failed Breakout
Last week's price action in the gold market was a tale of two halves. The first half of the week saw gold surge to new all-time highs following a combination of declining...
Welcome to the second part of our two-part series on market dynamics, where we explore how underlying supply and demand impact price action.
In Part 1, we examined how to spot the Accumulation phase of the market cycle, where institutional investors quietly build their positions. Today, we're delving deep into the Distribution phase, a crucial period where...
The bullish run in GBP/USD remains solid as official data released on Wednesday morning confirmed UK inflation remained unchanged at 2% in June. The release was actually a little stronger than anticipated as markets had hoped CPI would have dropped further to 1.9%, which would have been the lowest level since April 2021. Core inflation, which excludes volatile...
The drop in yields and the US dollar has been keeping gold supported. The precious metal reached a new all-time high on Tuesday at $2,470 as the dollar faces continued downside pressure. The momentum has attempted to continue building on the upside on Wednesday but the move has encountered some resistance around $2,480.
The softer CPI data on Thursday last week...
With Bitcoin surging to two-week highs on Monday, we’re going to shine a spotlight on the world’s largest cryptocurrency platform: Coinbase.
Trump Seen as Pro Crypto Candidate
Monday’s rally in Bitcoin can be attributed to the attempted assassination on former President Donald Trump over the weekend. This incident has increased the likelihood of Trump...
It’s been a summer marked by escalating political tensions on both sides of the Atlantic for EUR/USD. The tumultuous French elections earlier in the month have been followed by an assassination attempt on former President Trump over the weekend. Against this backdrop of rising political tension, let’s examine the key levels to watch on EUR/USD this week.
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In this two-part series on market dynamics, we’ll delve into the concept of Accumulation — where institutions investors quietly build a position in a stock. Understanding and identifying this phase in the Market Cycle has the potential to give retail traders a much deeper understanding of price action.
Understanding Accumulation in the Market Cycle
The...
EUR/USD is attempting to build the gains for a fourth straight session as resistance at 1.0915 becomes evident. The pair will need to breach and consolidate above this level to avoid falling into a double-top pattern which would reignite the bearish pullback. Beyond this level, further resistance could arise around 1.0945 before attempting to reach the 1.10 level...
GBP/USD is seeing its strongest monthly performance since November last year. The bullish drive in the pair has been intact since the start of July as it attempts to breach the 1.30 mark for the first time in a year. The RSI has ventured into overbought territory but the appetite for further gains keeps the path of least resistance higher for the time being. This...
USD/JPY was holding up pretty well until Thursday when the June CPI data came in lower than expected. The Bank of Japan’s (BoJ) continuous dovish policy has meant the Japanese currency has been heavily sold against most majors as the carry trade has played against it. Even intervention in currency markets from Japanese officials has not been able to halt the...
Gold (XAU/USD) jumped almost 2% on Thursday after softer-than-expected US inflation was announced. The precious metal, which had been building gains for the past two weeks, saw increased buying interest as markets took the softer CPI reading as a step closer to rate cuts.
Earlier in the week, Fed governor Jerome Powell said that whilst the labour market had...
Gold (XAU/USD) jumped almost 2% on Thursday after softer-than-expected US inflation was announced. The precious metal, which had been building gains for the past two weeks, saw increased buying interest as markets took the softer CPI reading as a step closer to rate cuts.
Earlier in the week, Fed governor Jerome Powell said that whilst the labour market had...
