Strong consolidation in the forex market – dollar VS euro.

After a series of central bank meetings, the foreign exchange market entered a phase of strong consolidation.

USDX consolidation

This consolidation is clearly visible by the damping fluctuations in the US dollar index – USDX. Continue reading

ECB restarts QE. Decision of September 12, 2019

ECB Monetary policy decision.

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:

mario-draghi-ecb2

(1) The interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively. Continue reading

Setting the Moving Average to another indicator in the MT4 terminal

Technical capabilities of the MetaTrader 4 (MT4) terminal allow you to impose a moving average on any other indicator in the terminal.

RSI Indicator and Moving Average

In the picture above you see how a simple moving average with a period of 21 (red line) is applied to the standard RSI indicator with a period of 14 (blue line). How to do it yourself? Continue reading

Defining Forex Supply / Demand Zones (continued)

In this article, we continue to study the trading methodology from the demand/supply zones of Sam Seyden and his followers. You can familiarize yourself with the first article at the link – “Forex Trading from Supply and Demand Zones“.

USDJPYH4 -supply and demand zones

The trading strategy in supply / demand zones is quite simple and methodologically fundamentally not particularly different from trading at support / resistance levels. Continue reading

Bear trap on the EURCHF currency pair

The EURCHF currency pair has been in a downtrend for 4 months.

EURCHF Daily-050919

For the last 20 days, we have seen consolidation on the pair, which is highlighted in the chart by a blue rectangle. Over the past three days, we have seen an unsuccessful attempt to break through the lower edge of the consolidation range, which led to the formation of a bear trap on the EURCHF. Continue reading

What is the meaning of negative yield bonds

Trade wars and a slowdown in the global economy have significantly increased international investors’ demand for government bonds as a safe asset. Inversion of the US bond yield curve, as a statistically strong signal of a probable future recession in the USA, gave an additional impetus to this trend.

Comparison of the value and yield of German bonds

Demand for government bonds led to a significant decrease in their yield. However, in the world, a huge amount of bonds has a negative yield. What makes investors buy these assets? Indeed, negative rates from the point of view of common sense and the basic of economic theory are nonsense. Continue reading

China plans to release its own cryptocurrency in November 2019

China plans to issue its own crytocurrency as early as Nov. 11, the country’s busiest shopping day for online sales, U.S. financial magazine Forbes said, citing two sources familiar with the matter.

Crypto-China

The People’s Bank of China (PBOC) has been exploring the possibility of launching its own digital currency since 2014 to cut the costs of circulating traditional paper money and boost policymakers’ control of money supply. Continue reading

Libra will replace the dollar?

In his speech at the Central Banks economic symposium these days in Jackson Hole, the Governor of the Bank of England made some extremely curious statements.

libra-facebook

Mark Carney said that dollar dominance in the global financial system increases the risks of the global liquidity trap, and that currencies like Libra will end dollar dominance. So what is the currency of the future Libra? And what is its threat to the modern financial system? Continue reading

Australian Securities and Investments Commission (ASIC) plans to ban binary options trading

On August 22, 2019, the Australian Securities and Investments Commission (ASIC) issued a document (19-220MR) proposing to prohibit the trading of binary options for retail traders.

Australian Securities and Investments Commission

The same document also proposes to significantly limit the trading of CFDs (CFDs). Continue reading

Japanese Yen – Forex Technical Analysis August 18, 2019

The Japanese yen has recently been in strong demand as a “safe haven” for investors on the topic of the risk off sentiments associated with the trade war between the US and China.

USDJPYDaily-180819_LI

On the daily chart of the USDJPY currency pair, we see a clear downward long-term channel. Continue reading