Forex Trading For Beginners 2021

NASDAQ lower. S&P and Dow modestly higher Ten minutes into the opening, the major indices are trading mixed: Dow industrial average is up 84 points or 0.24% at 34725 S&P is up 11.5 points or 0.25% at 4588.30 NASDAQ index is down 23 points or -0.15% at 15363 in other markets: Spot gold is trading up $4.68 or 0.25% at 1773.25 Spot silver is unchanged at $22.38 crude oil is trading near $69 and $68.91 the price of bitcoin is trading at $56,666 In the US debt market, yields are higher after the US jobs report with the yield curve continuing to flatten: Invest in yourself. See our forex education hub. December 04, 2021 at 02:41AM https://ift.tt/3ElyYel

Low after jobs stalled near low for day and quickly reversed higher The USDJPY - like other pairs - initially saw dollars selling after the jobs report. The low price reached 112.98 which was just above the low from the Asian session at 112.954. The price rotated back higher and in the process extended back above the 100 hour moving average at 113.232. That moving average was broken (to the upside) in the early European session and re tested later in the morning session (held on the first test).  The 100 hour moving average is now a risk level for longs looking for more upside momentum in the pair.  The price is trading at a new session high at 113.60. The next target comes against the 38.2% retracement at 113.666. On Tuesday, the price spiked higher on the dollar buying but stalled near that retracement level before rotating back to the downside. Getting above the 38.2% retracement target and staying above would be needed to increase the ...

GBPUSD remains below its 100/200 hour MAs this week The GBPUSD traded higher and briefly surpassed the 100 hour moving average 1.33036 after the headline nonfarm payroll came in weaker than expected. However, after looking at the details, the dollar selling reversed and we have seen a move back down toward pre-release levels.  The GBPUSD as traded up and down most of the trading week. The swing highs however, did stay below the higher 200 hour moving average (green line) currently at 1.33216.  Ultimately if the buyers are to take more control getting above the 100 hour moving average at 1.3303 AND the 200 hour moving average 1.33216 is needed. Absent that and the sellers are more in control. On the downside, before the jobs report, the price did move below the low from Wednesday's trade at 1.32607, but momentum could not be sustained (the low reach 1.32537). That makes sense given the risk from the jobs report. A move ...

Job growth slow but unemployment rate falls and participation rate rises The EURUSD move higher briefly after the weaker job gains. The Fed pricing has a rate hike by June with two hikes prices in for 2022.  That is unchanged from before the jobs report. As mentioned, the Fed is now focused on inflation concerns. The weaker jobs number is still positive and the unemployment rate coming down is in the right direction as well.  Technically, the price high moved up to 1.13329. That was just above a swing area between 1.13215 and 1.13315. It is still below the weeks high which peaked at 1.13775 on Tuesday. The price has come back down and currently trades at 1.1295. That puts the price between the 100 hour moving average at 1.13125 and the 200 hour moving average at 1.12765 and into a neutral bias area at least in the short term.   It will take a move above the 100 hour MA or below the 200 hour moving averag...

The USD is higher ahead of the US jobs report The EUR is the strongest and the AUD is the weakest as the NA traders enter for the day.  The USD is mostly stronger (it is marginally lower vs the EUR and the CHF) vs the major currencies ahead of the US jobs report which will be released at 8:30 AM ET/1230 GMT.  The largest gains for the USD have come vs the AUD and NZD. The US jobs (550K est.) and Canada jobs report (+36.5K est) will be the highlighted economic releases for the day.  The US ISM services PMI (est 64.9 vs 66.7 last month), and Factory Orders (est 0.5% vs 0.2% last month) will also be released at 10 AM ET/1400 GMT. The weekly Bakers Hughes rig count will be released later this afternoon. US stocks are little changed in early trading after closing sharply higher and stopping the 2-day decline yesterday. Nevertheless, the major indices are on pace to close lower on the week. European shares are playing catch up and higher in morning trading.  Yields in...

Dow industrial average leads. NASDAQ lacks The major US stock indices are trading in positive territory in early session trading. A snapshot of the market currently shows: Dow industrial average up 263 points or 0.77% at 34285 S&P index up 24.7 points or 0.56% at 4538 NASDAQ index up 53 points or 0.35% at 15308.71 Russell 2000 is trading up 23 points or 1.1% at 2171.01 The early buying is in contrast to selling to right before the opening in the futures. Go figure. Zoom shares are not forecasting a return to shut down as the sink to a 52 week low at $195.71. The high price for the year reached $451. Shares are down over 45% on the year Apple shares are down 2.5% after reports that sales were slowing due to supply constraints. Apple trade near $170 early in this week. It is currently trading at $160.56. Demand is outstripping supply due to the chip shortage. Crude oil is trading around $64.51 after reaching a low of $62.46. OPEC+ announced that they would continu...

Price remains below the 100 hour moving average for the fifth consecutive day The USDJPY moved higher in the Asian session and into the early European session, with the high price reaching 113.33. That peak stalled ahead of its falling 100 hour moving average (blue line). The moving average at the time was at 113.383. The current moving averages lower at 113.294 (and moving lower).   The price moved below the 100 hour moving average last Friday, and has stay below that moving average since then. The consolidation of the last few days has allowed for the moving average to catch up with the price. Nevertheless, it will take a move back above the 100 hour moving average to tilt the bias back to the upside from a technical perspective.  Absent that and the sellers still remain in control. The rotation lower (from the MA) has retraced the full move to the upside today. The Asian session low came in at 1...

Dow higher. S&P near flat. NASDAQ lower The premarket futures are implying a mixed opening: Dow industrial average, up 125 points S&P index -2 point NASDAQ index -40 points The premarket levels are lower from earlier levels (trending more to the downside ahead of the opening).   The US curve continues to flatten with the 2year up two point basis points while the 10 year is down -1.8 basis points. Invest in yourself. See our forex education hub. December 03, 2021 at 02:25AM https://ift.tt/3Dhcw4V

The 100 hour MA holds support (MA is rising). The heartbeat of the EURUSD remains steady with no spikes. Trading yesterday saw up and down (EKG like) price action. Today that pattern has continued. Technically, the 100 hour MA has moved higher and the low today tested that MA level and found support buyers (see blue line in the chart above). That MA currently comes in at 1.13101 (and is rising).  On the topside, the more volatile heartbeat from Tuesday's trade saw the price test a swing area between 1.13735 and 1.13852. The 38.2% retracement of the move down from the October 28 high was also within that range at 1.13787.  That area is the next upside target on further upward momentum today. Break the 100 hour moving average and traders will first look toward 1.1287 to 1.1294 swing area, and then the 200 hour moving average (green line) at 1.12707. The low to high trading range in the EURUSD is 40 pips. The 22 ...

The USD is tilting lower. What is ahead in the US markets today. The GBP is the strongest and the AUD is the weakest as the North American session begins.  OPEC+ meeting will be a highlight today, along with the weekly initial jobless claims data and Fed speak. OPEC+ could keep the pace of 400K production increases in play, or lower increases to 200K or stop the production increases all together in reaction to omicron concerns.  All options are on the table as ministers meet.  The claims data will be the latest look at US jobs ahead of the monthly jobs report tomorrow from the BLS. That report is expected to show a job gains of 553K (vs 531K last month).  The claims is expected to come in at 238K vs last weeks dip to 199K.    Fed speak will be highlighted by Bostic, Quarles, Barkin and Daly who are all scheduled to speak.  Chair Powell reaffirmed his shift to a faster taper and concerns about inflation that could lead to earlier tightenings. ...

WTI up a little over 2% around $67 Invest in yourself. See our forex education hub. It is tough to get too optimistic about oil prospects at the moment as omicron fears are still weighing quite heavily on the fundamental backdrop. But since the peak in October, oil is down by over 21% with the bulk of that drop coming amid the plunge last Friday as the omicron variant went mainstream. So far this week, buyers have taken in some light comfort in the early stages only to see things all crumble by the time we're headed towards the daily settlement close. While that has been a familiar theme, today's story will largely hinge on OPEC+'s decision on whether or not they will pause their monthly output hikes in January next year, as the reassess and weigh up how the omicron variant will play out. As much as omicron worries still has the chance to of not being too severe once there is more clarity in the weeks ahead, just be mindful that oil market sentiment right now is look...

NASDAQ doing the best in premarket trading The stock futures are implying a higher opening for the major indices after yesterday's sharp declines.  The futures are currently implying: Dow industrial average up 335 points after yesterday's -652.22 point decline S&P index up 57 points after yesterday's -88.25 point decline NASDAQ index is faring the best with a gain of 215 points after yesterday's -245.14 point decline in other markets: Spot gold is up $12 at $1786 after yesterday's up and down price action Crude oil is trading at $68.45 near mid range levels Bitcoin is moving higher at $58,525 but remains below the $60,000 level. It is nevertheless off it's low price of $56,700 and trading near the high The US rates are higher but off their highest levels of the day. The two year yield is up 6.7 basis points Invest in yourself. See our forex education hub. December 02, 2021 at 02:29AM https://ift.tt/3ls5y78

Buyers and sellers in a playground fight The buyers and sellers in the EURUSD are beating each other up in what is turning into a playground fight with haymakers flying but little in the way of meaningful connections. The price of the EURUSD is near unchanged on the day after moves up and down failed to ignite any momentum in the direction of the breaks. It might be safe to say that intraday traders are taking punches - and giving punches - and buyers and sellers are getting tired in the process. It might take a new fighter to step in to take control at some point (is it Powell, stocks, interest rates or PMI/ISM data?) Looking at the hourly chart, most of the price action since midmonth November has been between 1.1228 and 1.1385. Between are some swing areas including 1.1321 to 1.13315.  Unfortunately that swing area has been in the middle of the price action today, neutralizing its impact. Since that swing area is being ignored, ...

Up a few pips on the day after trading as high as +51 pips The USDJPY has given up it's gains on the day after rising some 51 pips from the close yesterday. The current price is trading up around six pips on the day at 113.19. Looking at the hourly chart, the move higher today stalled just ahead of the 38.2% retracement of the move down from last week's high. That level comes in at 113.666. The high for the day reach 113.622. Yesterday, the corrective move off the low did crack above that 38.2% retracement but quickly rejected the break and moved back lower into the close. Getting back above the 38.2% retracement (and the falling 100 hour MA at 113.80 area) would be needed to start to tilt the bias more to the upside. Failure to do that is indicative of the sellers still in control (and winning).  Yesterday the USDJPY had a volatile down and back up and back down day. The last dip lower into the close stalled near the swing low from Friday just below the 11...

The USD is mixed ahead of Powell II testimony The NZD is the strongest and the CHF is the weakest as North American traders enter for the day. The USD is mixed as Fed Chair Powell switches to the House of Representatives.   Yesterday in front of the Senate Banking Committee, Powell shifted away from "inflation is transitory" to admitting it is likely to stay around for a period longer than "transitory".  As such, he also tilted his bias toward tapering faster (Fed will discuss at the December meeting).    Oil tumbled, stocks tumbled, the yield curve flattened (longer end yields moved lower), the USD initially moved higher, but did correct off the highs by the close.  The omicron virus was also a contributor to the trends.   Today, the story is NOT the same.  Oil is higher. Stocks are higher.  The yield curve is continuing to flatten with yields higher across the board.  The dollar is mixed. The omicron virus fear has subsided....

Dow industrial average and S&P index are still lower The NASDAQ index has erased earlier declines and trades higher on the day ahead of the Powell and Yellen testimony on Capitol Hill.  The NASDAQ index is currently up 37 points or 0.24% 15820.70.  The S&P index and Dow industrial average remains negative: Dow industrial average -215 points or -0.60% at 34924.80 S&P index -12 points or -0.26% at 4643.40 US yields remain sharply lower with the 10 year yield down nearly 10 basis points: In the forex market, the USD has moved to new lows for the day vs the EUR, JPY, CHF, AUD and NZD is early US trading.  The greenback is still higher vs the CAD (as oil declines) but has erased some of the gains in the US session.  The consumer confidence data came out weaker than expected today. Invest in yourself. See our forex education hub. December 01, 2021 at 03:10AM https://ift.tt/3xRjBbr

Major indices lower in early US trading Dow leads declines with financials and real estate lagging The major indices are lower in early US trading. The Dow industrial average leads the clients with financials in real estate lagging. Consumer discretionary leads in early trading. The snapshot of the market 10 minutes into the opening are showing: Dow industrial average -247 points or -0.71% at 34882 S&P index -30.3 points or -0.66% at 4624 NASDAQ index -54 points or -0.35% at 15730 Russell 2000 is down -17 points or -0.76% at 2225 A snapshot of other markets as US stock trading gets underway shows: Spot gold plus $11.90 or 0.67% at $1796.09 Spot silver up one cent or 0.02% at $22.88 Crude oil $-2.80 at $67.17 Bitcoin is trading just above $58,000 at $58,276.80. In the US debt market, the yields are down sharply with the tenure leading the way at -9.5 basis points at 1.434%. The low for the day reached 1.419%. Last week the high yield reached 1.69% before tum...

Buyers lean against the 100 hour MA The GBPUSD is higher on the day but off the earlier highs for the day.  However, the dip off the high did find support buyers against the broken 100 hour MA at 1.33261. That MA was broken in the London morning session after successfully testing the same MA in the Asian session.  If the buyers are to keep some short term control, holding that MA is required today.  Failure to do so, and the control shifts back to the sellers.   Although buyers are making a short term play, they still have work to do. More specifically, getting and staying above the 200 hour MA (green line) at 1.33765 is required.   The pair last traded above that MA on November 22, but those attempts were quickly reversed.  With the MA at a lower level now, getting and staying above the level is an easier hurdle.   However, the MA still NEEDS to be broken if the buyers are to start to take more control, and have some more "wins"....

The low ticks below the November 9 low of 112.719 The USDJPY reached the highest level since January 2017 last week when the price ticked up to 115.513. That high ticked above the March 2017 high of 115.501 taking the pair to the highest level since the week of January 15, 2017. However the 1.2 pip break did not impressed the buyers, and they turned to sellers.   The last four days has seen the price move lower and in the process, retrace the entire move higher in November. The previous low was set on November 9 at 112.719. The low price today ticked to 112.674 before a modest bounce. The current price trades at 112.77. Will the modest break below the November low give dip buyers a level to lean against now? It could.  Like the modest break at the highs just 5 days ago, the modest break at the lows can give the extreme traders a level to define and limit risk.  Be aware.  However, it will likely take so...

The trend higher steps above swing areas in the run higher today The EURUSD has a solid 91 pip trading range - well above the 22 day average (about a month) of 68 pips - as the market price trends to the upside.     The pair on Monday traded above and below its 200 hour moving average (green line) currently at 1.12704, but did close near the London session high and swing area between 1.12876 and 1.12942 (see green numbered circles).  In the Asian session, traders into the price above the aforementioned swing area and then based against the level before buyers took control and pushed the price higher into the European/London session.  Higher than expected inflation data and positive German employment statistics helped to keep the move to the upside going.  The price stepped above a higher swing area between 1.13215 and 1.13315 and headed up toward the next target against the November 18 high price at...