On Wednesday we received U.S. retail sales data which pointed to a rather concerning trend for the U.S. economy (Did US Retail Sales corrupt your USD Currency Trades?). The headline showed a rise of 1.1%, but the gain was due to a surge in gasoline sales which means Americans spend more money at the pump and therefore are not able to support the economy. On top of that they are faced with the 2% tax hike Mr. Obama imposed on them. The economic prospects for the U.S. get darker with every released economic report. A report on Friday showed...
For the coming week, anticipate a stronger Greenback for the coming session signaling continued growth in the US, despite the sequestration concerns, the US Non-Farm Payroll increased by 236,000 jobs in February while unemployment fell by 7.7%, though the structural issue remains. The January’s job gain was revised down to 119,000, but an upward revision in December led to a net decline of only 15,000. Gains were evident across most key sectors including manufacturing, construction and business services. In addition, private sector jobs...
The NZDUSD currency pair has bounced from its support zone, which is enforced by its ascending 50 DMA, and rallied to set a higher high as visible in this H4 chart. The most recent candlestick formed a spinning top formation at resistance. We believe this forex pair will correct back down to its ascending support zone before it will attempt another major move. MACD has formed a large negative divergence and a bearish centerline crossover will cause this currency pair to breakdown from its current formation. RSI has formed a negative...
The USDCHF has corrected last week and dropped below its 200 DMA support level as visible in this H4 chart. This currency pair has formed a falling wedge formation and price action is focused on its descending support level. During the correction the 50 DMA as well as 200 DMA completed a bearish cross which may point to future weakness. We call this forex pair higher and expect a rally back into its descending 50 DMA in order to test this level before it could be headed for new lows. MACD has formed a positive divergence and supports calls for...
To understand the processes of financial markets, you need to understand a little bit of human psychology. In Forex, all the usual feelings and desires are expressed many times stronger. Natural feelings like anger, irritation, fear and hope, in the speedy pace of trading are often crucial for the trader.The weak and the hungry, the slow and the self-confident - all these players will become victims of the trading game. Knowing your own weaknesses and shortcomings will help you to avoid bankruptcy, and if you can properly assess the...
