The trade war between China and the United States, in the light of its next escalation, prompts investors to once again seek refuge in safe assets. The confrontation of the main economies of the world takes a new turn, after early this morning, the Deputy Minister of Foreign Affairs of China called the American sanctions and duties against China as economic chauvinism and psychological terror. In the Forex market, one should expect increased volatility in the main trading pairs.

This morning, the EURUSD pair was noted at the maximum value from the middle of this month - 1.1214. This reaction is due to the defeat of the populist and far-right parties in the past elections to the European Parliament, contrary to forecasts. According to the results of the elections, 80 percent of the seats in Bruxelles is left to the pro-European parties, which will support the single European currency.

Fundamental indicators of the German economy will be the main drivers for the single European currency today. The 2nd assessment of GDP indicators, the PMI for May from the Markit agency, as well as IFO indicators on the German business climate will determine investor sentiment. In addition to German statistics, you should pay attention to the minutes of the ECB meeting on monetary policy, the tone of which may also affect the euro.

At the start of Wednesday trading, the US currency reached a 3.5-week high, supported by the increased yield of US Treasury bonds, after Washington had eased the restraining tone the day before, allowing Huawei to buy American-made goods. The dollar index fell slightly to 98,051 points to the basket of major currencies, previously reaching a 3.5-week high of 98,134 points.

The Australian dollar began a new trading week in very high spirits after the results of the local parliamentary elections became known. The instability of the GBP and EUR, in the run-up to the elections to the European Parliament, may provide indirect support for the Australian currency, both today and during this week. As it became known, the current Australian Prime Minister Scott Morrison and his conservative coalition won the last parliamentary elections yesterday, which was an unexpected result for experts who predicted the victory of the opposition Labor Party.

Developed by Gerald Appel in the late seventies, the Moving Average Convergence/Divergence oscillator (MACD) is one of the simplest and most effective momentum indicators available. While you don't need to understand the math that underlies the calculation of the MACD trend-lines, by understanding more about how the MACD indicator works, you'll be better positioned to avoid getting fooled by its false signals or lack of signals, such as when the price turns but the MACD doesn't provide any warning.

The study of price action has become the mainstay of traders as the internet age has merged trading prices being recorded on charts in real time. Traders love technical analysis because of the argument that all news or fundamental analysis is priced into the chart. Technical trading is like getting into the mind of the market to see what it may likely do next based on historical behavior as opposed to what it should do based on the news alone.

If you have ever come across the term ‘naked forex trading’ in the past, you may have been (understandably) intrigued. Needless to say it is not a literal term, but is used to describe a certain style and technique of forex trading. Most forex traders rely on technical analysis books written for stock, futures, and option traders. However, long before computers and calculators, traders were trading naked. Naked trading is the simplest (and oldest) trading method. It's simply trading without technical indicators.

Recognizing chart price patterns is an important aspect of technical analysis that forex traders should master. These patterns act like a highlighter on the chart showing a potential trade. With so many ways to trade currencies, picking common methods can save time, money and effort.

Most traders initially believe that by making their systems increasingly complicated, they’re making positive steps to improve their trading in an attempt to ‘out smart’ the rest of the herd. Complicated trading strategies and technical analysis, although sometimes psychologically appealing, can be very counterproductive to the bottom line.

Forex trading is becoming increasingly popular around the world. More and more people register at a forex broker and try to trade. But it’s more like testing their luck when they start trading because most new traders actually gamble and don’t trade seriously. They open positions due to emotions or feelings lucky and hope that the trade will go in their favor.