Today, I would like to share some of the biggest misconceptions of trading that I have seen with many traders. These aren’t tiny misalignments that don’t matter in the grand scheme of things... I’m talking about seemingly benign misconceptions that will adversely affect the entire trajectory of your journey to becoming a consistently profitable trader. Interested to hear about them? Read on!
You bought a stock when it was trending up. But you lost money. You scratch your head and think to yourself “Isn’t trend following about buying when the trend is up and selling when the trend reverses?” I was in your shoes.
The US dollar has retreated versus its rivals as the USDX has plunged from 94.74 high to 93.81 static support. USDX’s decline could be ended if the US will report better then expected data later today.
Even though the U.S trading markets are jittery regarding the first presidential debate between the incumbent and his opponent, market speculators are uniquely unfazed and as they look bullish as current price action structure suggest a high chance of buy set up momentum as buyers rejecting any price bid to the downside shoved by the sellers.
The Greenback rallied against the leading currencies in the world on Wednesday. This comes as risk aversion in the forex market intensifies as investors fear the rising Coronavirus infections in Europe, the United States, and other parts of the world. Another major reason for the US Dollar rally was the poor global PMI data that shows that business activity across several advanced economies is declining.
EUR/USD has recovered a little which is normal after the short-term sell-off. The rate could retest the broken support levels before resuming the corrective phase. The greenback has slipped lower only because the US Unemployment Claims have increased unexpectedly in the previous week to 870K, above the market expectations of 845K jobs.
There is now a change of market sentiment after strong sell rally with a text book perfect Inverted head and shoulder pattern formation as viewed on the daily chart and confirmed the pattern as we see market participants rally past up the angling neckline and a retest. The upward momentum did not find quite a resistance as sellers offered little or no push back as buyers easily breached past the 0.925 price level handle which could have offered to some sellers ceiling level block to place their sell limit orders.
Gold is strongly bearish due to the USD’s appreciation. It’s traded at $1,852 level, right below $1,864 former low signaling a massive pressure. Yesterday’s major drop from $1,900.20 to $1,855 confirms a deeper corrective phase.
The overall market bias sentiment is strongly bearish, price has shot down past the main level of low handle price range for the trading month of August and looking at the assigned charts posted below on the daily charts, we should expect long extended sell off as market participants are looking to pivot around the 200 MA.
WikiFX| Daily F.X. Analysis, Sept 24 |Arslan Ali Butt-KOL
In the last five years, brokers originally from South Africa have not received the greatest reception. While there are plenty of international brokers for South Africans, many clients have been looking for brokers closer to home. There are almost countless legit firms internationally that are used by South Africans.
The pair could be facing a bit of correction or sell-off by the sellers as the buyers been in a fatigue kind of trading mode as we see exhaustion on the current structure especially the last one and half week or so as you can view small green candles with upper wicks being equal to the size of the main body and to some others abet elongated or longer than the main body and in addition to that, round about price handle level 0.96405 area acting really strong resistance ceiling having being tested now four times.
EUR/USD has finally managed to drop below the 1.17 psychological level confirming a corrective phase after the last swing higher. The pair has escaped from two channels signaling a deeper drop in the short term.
The Aussie underperformed against the majority of the leading currencies during Monday's trading session. The AUD/USD dropped lower from 0.7235 to 0.7205, down by 0.4%, after the Reserve Bank of Australia's (RBA) deputy governor Guy Debelle commented that a weaker Aussie might be good for the Australian economy.
The ascending channel has been breached as price action tanks down past the lower ascending channel line as we can view the market structure currently. The yen has been gaining ground as a currency and the Australian dollar is faltering, and so we are seeing a nice sell-off in this pair as market participants as cashing out the aussie dollar probably for a little while.
The pair has changed little in the early morning but it could accelerate its sell-off in the coming hours. USDX’s rally boosted the greenback which has appreciated versus most of its rivals.
Over the last few weeks, the rand (ZAR) has strengthened considerably against some top currencies, namely the dollar (USD), euro (EUR), and pound (GBP). These movements present possible selling opportunities for the rand against these baskets of currencies.
Since start of the trading session month of September, market participants have been toying, testing the low level of the previous monthly trading session which is the month of August. And even at one point nearly breached to pass past that low level but seems buyers held fort and rallied the price up with a huge momentum to this month trading session open price level.
WikiFX| Daily F.X. Analysis, Sept 21 |Arslan Ali Butt-KOL
EUR/USD is traded higher at 1.1862 level and it seems determined to resume its upwards movement. USDX’s drop helps the pair to jump towards new highs. A valid breakout above the immediate upside obstacles could bring a great long opportunity.
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