On Wednesday we covered a very important topic for forex traders; Forex Risk Management. Most new forex traders have poor risk management procedures and only focus on generating profits in their portfolios. They ignore that risk management is as important to a successful trading strategy as risk management is. You need to protect your bottom line and make sure that trades which move against you will not wipe out your trading account. It is vital that all traders implement risk management procedures and execute them as part of their...
The USDCAD has started to correct due to weaker than expected economic data out of the U.S. as visible in this H4 chart. This currency pair has now reached the upper band of its support zone. The Golden Cross, a lacking indicator, suggest a general bullish sentiment. Having said that we believe this currency pair is due for one final bounce into its 200 DMA before starting a bigger descend which will take this pair below parity. The latest candlestick has formed a hammer formation at support and we expect a minor rally before the...
The GBPCHF has rallied over the past few weeks as visible in this H4 chart. This currency pair has formed a rising wedge formation after it completed a breakout above its 200 DMA. We believe this currency pair will now retest its new support level and correct back down to its ascending support slightly above its 200 DMA before we may see more upside potential. MACD has shown severe bullishness in this pair after its bullish centerline crossover which suggest higher highs are possible after a much needed correction. RSI trades in...
The USDCHF has launched a nice rally after reaching multi-week lows as visible in this H4 chart. This currency pair has formed a rising wedge formation which is a bearish chart formation. Current price action is approaching its descending 200 DMA and we believe this currency pair will start a counter-trend correction back down to its ascending support level with a potential breakdown to its 50 DMA. MACD has performed a bullish centerline crossover and indicates that momentum has turned bullish. This may point to future strength...
