Understanding Technical Analysis

Much might depend on the whims of the Friday trade in the major indices. But it represents only one point of view. In fact, successful money management systems recommend such analysis before deciding if a pair is bullish or bearish. Technical Analysis Using Multiple Timeframes One of the reasons so many traders fail is because they miss the big picture. More information about cookies. Since then, the price wandered lower, and then the pair got a kick lower on the back of risk-off trades from the Trump tariffs rumblings. I mean, the market differs, of course.

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Market News Headlines

GBP shorts remain the largest spec position Markets:. It was a full day of headlines on Friday with the main one a report that Trump has told his cabinet yesterday he wants to impose China tariffs. Yesterday's rally was completely wiped out in a 60 pip fall to 1.

That takes the shine off a nice two-day bounce from 0. Cable news from Raab and Barnier wasn't a big surprise and didn't have much of an effect. Cable was caught in a broad US dollar bid that was built on solid data and talk about the Fed hiking beyond long-term neutral next year. The White House says the President has been clear that he and his administration will continued to take action to address China's unfair trade practices.

The tariffs are coming. Daly has worked at the New York Fed since and is the current research director. She will take the job on Oct 1. According to Bloomberg that her past speeches hint she could prefer a slow-going approach to rate hikes, which is typical of the San Francisco Fed. Two weeks ago, Argentina was asking the IMF to speed up payments. I was on BNNBloomberg yesterday talking about global currencies.

If you skip ahead to 2: Draghi said risks were balanced, so there must have been some people on the other side. Draghi was surprisingly upbeat yesterday but it's clear that there's some worries, especially with a few weak data points. There's been no reaction to this headline, which hit right at the top of the hour on Reuters.

It's possible that someone had it an hour earlier and it would explain the drop then. Drilling picks back up but has stalled for a few months.

NPR reports that Manafort's cooperation agreement with the special counsel does not include matters involving the Trump campaign. The person asked not to be identified," NPR reports.

That vastly diminishes the political risk for Trump. It makes sense, seeing as he would want a much better deal if he was going to sell out the President. His best chance at freedom any time soon is still a pardon. The euro is at the lows of the day, down 60 pips to 1. There aren't any new headlines behind the drop. It's not yet clear how much cooperation he will be doing, or what he knows.

He's certainly not getting a sweetheart deal. He's already been found guilty to counts that will lead to several years in jail and with this plea he will get more jailtime and has agreed to forfeit four bank accounts and give up all his property.

However on the Trump file, it's all about Trump about to put tariffs on China. More supply in landlocked Alberta without any means to get it to market has resulted in a massive discount but it's approaching crisis levels at the moment.

If only there were some kind of safe, extremely efficient way to get oil to tidewater. Even with today's bounce, the move is modest in the weekly perspective.

Taking a look at the daily chart, the bounce is modest and that will keep the pressure on the downside. Title text for next article. Join our Telegram group. Get the ForexLive Newsletter. The greater the story, the greater the bubble. Fri 14 Sep The greater fool theory explains almost every bubble Some things have an intrinsic value.

This is all called the greater fool theory. The problem is that eventually you run out of people. How do you trade a bubble? Instead, you are simply evaluating what other people think. View Full Article with Comments 3. ForexLive Americas FX news wrap: US retail sales miss but trade worries rise Forex news for North American trade on September 14, GBP shorts remain the largest spec position Markets: Have a great weekend.

Forex news for North American trade on September 14, Asset 24 View More. The US major indices close with mixed results. Up on the week. Nasdaq leads the gains for the week The major US indices are ending the day with modest gains. The high for the day reached The low extended to The high reached For the week, the major indices are ending the week with gains.

The Nasdaq led the major indices in the US with at 1. The Dow was the laggard but still rose 0. GBP shorts remain the largest spec position. Commitment of traders report for the week ending Sept 11, NZD short 23K vs 25K short last week.

EUR longs increased but still a relatively small position. It remains the only currency that is long GBP shorts trimmed by 9K, but position remains the largest of the major currencies.

The GBP was the strongest currency this week. So the shorts are feeling some pain. CHF shorts were also trimmed in the current week by 5K. Trump has been clear will take action on China White House statement cited by Reuters The White House says the President has been clear that he and his administration will continued to take action to address China's unfair trade practices. Trump has been clear will take action on China Adam Button.

White House statement cited by Reuters The White House says the President has been clear that he and his administration will continued to take action to address China's unfair trade practices. What major currencies were the strongest and weakest this week? The GBP was the strongest. The JPY was the weakest. The trading week is coming to an end, and that means it is time to crown the strongest and weakest of the major currencies.

The most positive number is the strongest. The most negative is the weakest. There is no weighting. The strongest currency this week was the GBP. The main catalyst was more positive chatter on a Brexit solution. The weakest is the JPY. After a correction on Wednesday, the price raced higher on Thursday, largely influenced by more favorable Brexit hopes, and the break of the day MA at The price also moved above a topside trend line and Today, the price stalled near that broken trend line and Although the price is lower today, staying above those technical levels keeps the buyers more in control.

That trend line and retracement will be key for the bias next week. Stay above is more bullish. Move below and the gains from the week, may give up more of the gains. She will immediately have a vote at the Nov and December meetings then won't vote again until The contract is also up on the week.

The price action was up and down today see hourly chart above. The price is settling between those levels. The "market" is unsure of the next move PS the high this week stalled just before the September 4th high.

This week, hurricane Florence was an influence rightly or wrongly. Also weekly inventory showed another sharp drawdown. The anticipation of Florence and inventory data sent the price higher. As the storm seemed to lose some steam and maybe the disruptions from the storm became less of an idea for traders , the price fell back down. Next week, traders will looking for the run away from the MAs to give technical bias clues for the contract. Pair stalled at the topside trend line earlier in the day The GBPUSD tested a topside trend line earlier in the day and stalled against that trend line not once but twice after Raab headlines.

That helped to put a lid on the pair. The price has been pushing lower since then. The next target comes at 1. Each time, the price bounced higher. Can the pair bounce 4 times or is this the time for a break.

Our daily technical analysis feed provides key insights on current market trends in forex, cryptocurrencies, commodities and indices. Our in-house experts assess relevant technical FX information to deliver articles, analyst picks and in-depth insights to inform your trading strategy. The technical analysis of markets involves studying price movements and patterns.

It is based on identifying supply and demand levels on price charts by observing various patterns and indicators. Technical traders project future market conditions and forecast potential price fluctuations by observing historical price patterns. There are countless tools available for technical analysts to assess market sentiment and locate points of support and resistance, which can be used to determine whether a given trend will continue — examples include trend lines, moving averages and the Relative Strength Index.

The Dow is pulling back from fresh seven-month highs, and prices have begun a test of a short-term support zone as reports around Chinese tariffs have started to circulate. The combination of current sentiment and recent changes gives us a further mixed US trading bias. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse higher despite the fact traders remain net-long.

Bitcoin and Ethereum Price Analysis: Data updated in real-time. Retail trader data shows The number of traders net-long is 4. To gain more insight to how we use sentiment to power our trading, join us for our weekly Trading Sentiment webinar. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bullish contrarian trading bias.

Having trouble developing your strategy? The number of traders net-long is 7. Having trouble with your strategy? We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. The number of traders net-long is We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish contrarian trading bias. The number of traders net-long is 3. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall.

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