Free Forex Analysis for 05.27.2015

May 27, 2015 Forex Analysis

Free Forex Signals for 05.27.2015

EURUSD, Daily

Yesterday’s US reports revealed small upside surprises. The durable goods figures for equipment beat estimates modestly despite a 0.5% April headline orders drop, while new home sales rose 6.8% in April to partly reverse a March plunge. The GDP growth outlook remains unchanged at 2.5% in Q2. We saw a May consumer confidence rise to 95.4 that defied declines in all other confidence surveys for the month, and the Richmond Fed index bounced as expected to 1 from -3. Only the Dallas Fed index disappointed, with a drop to a -20.8 six-year low from -16.0 in April. Additionally we had Richmond Fed’s Lacker speaking yesterday. He likes June as a “good time to begin considering raising rates,” suggesting that weak Q1 data is transitory and inflation is firming again after oil rebounds from its slide. Lacker is a known hawk in the FOMC.

EURUSD has recouped the 1.0900 level during Asian trade after leaving a one-month low at 1.0863 yesterday. The pair has fallen some 4% in seven of the last eight trading days after making a three-month peak. I suggested yesterday that the support at 1.0845 could work as a target for intraday trades as 61.8% Fibonacci level coincides with daily highs in April. Market turning higher slightly above this level suggests that others are eyeing the same level. Yesterday’s close was outside the lower 2 stdv Bollinger Band and should today’s close be inside the band probabilities of price rallying higher increase. The next significant resistance area is at 1.1084 to 1.1131.

Currency Pairs, Grouped Performance (% Change)

Apart from movements in CHF the price action in other currencies has been relatively small. Money has been moving into CHF from other major currencies and it is up by 40 to 50 basis points or more against all the other currencies except EUR. CHF has been especially strong against the JPY, up by over 0.75% at the time of writing. Euro’s relative strength against CHF adds to the EUR strength we are seeing against the USD and other majors. There is consistent JPY weakness even though the movements have most of the morning been subdued. An exception to this is CHFJPY. USD performance is a bit mixed after hitting a historical resistance level in DXY. From this point of view it’s interesting that EURUSD is close to a support, USDCAD is trading at resistance and NZDUSD close to a weekly support. Also USDCHF is reacting lower from a combination of historical resistance and upper Bollinger bands together with a 50 day SMA.

Main Macro Events Today

German Gfk Consumer Confidence Survey (Jun) rose to 10.2 from 10.1. Economic confidence is improving, as is the willingness to buy, despite the fact that income expectations eased slightly. This is a confirmation that the German recovery remains on track.
Canada BoC Interest Rate Decision is expected to hold rates steady at 0.75%. It will likely maintain a constructive outlook beyond Q1, expecting return to full capacity around the end of 2016. No change in rates through 2015 is expected.
Japan Retail Trade (YoY) is expected to increase by 5.4% in April. Previous result dropped 9.7% y/y in March from a revised -1.7% y/y in February (was -1.8% y/y previously). Large retailers saw a 13.0% y/y plunge after a 1.3% February gain. However, we have to take into account that sales surged in March 2014 ahead of the April tax hike.

Janne Muta

Chief Market Analyst

HotForex

If you wish to get the latest forex brokers news,you can visit our TopForex Brokers official website: http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmuta Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.

“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

USDJPY Trading Near March High

May 25, 2015May 27, 2015 Forex Analysis

USDJPY Weekly

USDJPY has been moving side ways since the beginning of December 2014. The deepest correction has the retracement to 38.2% Fibonacci level in mid-December and was followed by another in January that attracted buyers just above the previous low. Since then price has challenged the previous high once and after failing to penetrate the resistance it created a higher low. Now the pair has yet again moved to the upper weekly Bollinger Bands. At the same time we have the US Dollar Index at a level that resisted moves higher in March this year.

USD has been relatively strong against the JPY throughout period it has been correcting against the other currencies and as the weekly lows have been higher with the latest CPI number from States surprising to the upside it could well be that the upper end of this range will eventually give in. At the end of the day it is more likely that the US Fed will hike the rates before the Japanese central bank which could even come up with yet another round of stimulus.

USDJPY Daily

Last week’s rally lifted USDJPY to the upper end of the range that has limited the pair’s movements since the end of the last year. Stochastics is overbought and price is reacting lower after moving above the upper daily Bollinger Band and also very close to the March high. If today’s daily candle closes to current levels or lower price has created a bearish shooting star candle. Stochastics is about to move below its three day moving average and could give a bearish signal should the weakness continue. Nearest support and resistance levels are 120.84 to 120.50 and 122.02.

USDJPY 240 min

The pair fell lower after hitting a historical resistance at 121.68 and has since found support at a minor support level that coincides with a high from Wednesday last week. This lack of upside momentum and a correction lower has eased the overbought condition in this timeframe and brought the oscillators lower. The nearest more significant support area (120.83 – 120.61) is currently near the lower Bollinger Bands and 38.2% Fibonacci level while the next major resistance is at 122.02.

Conclusion

Price is trading close to a longer term resistance and we could see market creating an exhaustion candle (shooting star). Today’s price action however might not be that important as many significant markets have been on holiday. Whenever a market is trading close to a resistance one should be looking for shorting opportunities. This market is trading near its resistance levels and therefore I would only initiate long positions after a correction to a significant support. Due to divergent inflation expectations and relatively strong US economy the dollar yen pair should eventually move higher but as usual a low risk entry would be preferable.Taking advantage of corrections to significant support levels such as the range created by Friday’s low at 120.61 and 1.5 stdv Bollinger Bands at 120.83 would be a preferable strategy to buying close to a resistance. Look for confirming price action at the key levels. If aforementioned support level fails to attract buyers assumptions in this analysis need to be re-evaluated.

Janne Muta

Chief Market Analyst

HotForex

If you wish to get the latest forex brokers news,you can visit our TopForex Brokers official website: http://www.topforexbrokerscomparison.com

Today’s Currency Movers

May 22, 2015May 27, 2015 Forex Analysis

EURUSD, Daily

Yesterday’s weaker than expected existing home sales in US and a dip in the Philadelphia Fed Manufacturing index supported forecasts for only tepid pick up in Q2 growth after a very weak Q1. The May Philadelphia Fed Survey disappointed. The figure came in at 6.7 instead of 8.0 expected by the analyst consensus. This increased expectations that the Federal Reserve will maintain its current dovish stance.

EURUSD has been trading in the low-to-mid 1.11s, above Wednesday’s 1.1060 low. There was a lack of substantive progress at the latest summit in Riga between the Greek government and creditors in bailout negotiations. The on-going Grexit uncertainty might have been the reason the euro’s upside has been curtailed, while the May German IFO today should affirm the slowing in growth momentum that was seen in the ZEW and PMI surveys. ECB’s Draghi and BoE’s Carney are set to speak at an ECB conference on central banking in Portugal and today’s European data calendar is unlikely to give markets any reason to cheer. Another speaker worthy of mention is the Fed Chair Janet Yellen speaking later on today.

The resistance area created by the May 11^th pivotal low has been holding EURUSD back but yesterday’s daily low was higher than the previous day’s low. This with the fact that price has moved higher from today’s open suggests modest bullishness on EURUSD. Daily bar lows also seem to honour a trendline drawn from April low. Stochastics are oversold and the lower Bollinger bands are catching up with the price. US Dollar index is looking weak as it’s trading below the shooting star candle lows from day before yesterday. Nearest support and resistance levels: 1.1052 and 1.1324.

Currency Pairs, Grouped Performance (% Change)

Modest EUR strength and USD and GBP weakness is dominating the Currency Movers charts today. AUD, NZD and JPY performance has been mixed. EURJPY, EURAUD, EURCAD and EURNZD are reacting higher from intraday supports and should EUR make a move today, these pairs are likely to follow.

Main Macro Events Today

German Gross Domestic Product (Q1) growth slowed to 0.3% q/q as expected, a significant decrease from the fourth quarter last year which was 0.7%. Still, taken the two quarters together, the underlying trend is robust. The very strong labour market, the rising wage growth and the boost to real disposable income from lower oil prices reinforced Q1.
US Consumer Price Index (YoY) is expected to remain unchanged, while the core index, which excludes food and energy products, is expected to rise to 1.7%, 0.1% lower compared to previous year’s result.
Canada Consumer Price Index (YoY) is expected to expand to 1.0% in April, 0.2% lower compared to the previous month. It is seen rising 0.1% on a monthly comparable basis in April after the expansion of 0.7% m/m in March and 0.9% m/m in February.

Janne Muta

Chief Market Analyst

HotForex

If you wish to get the latest forex brokers news,you can visit our TopForex Brokers official website: http://www.topforexbrokerscomparison.com

How Forex Trading is Necessary to Get a Good Stability?

September 29, 2014 Forex Analysis

What is Forex Trading?

It is just trading of currencies. But it is decentralized and can easily be done through online from any part of the world. If you really want to improve your way of trading to get good profit, then you need to improve your business strategy.

What is Forex Trading?Forex Trading means deal with currencies. Larger international banks are most important participants. Individual traders can also participate. There are many factors that influenced the price of currencies. It depends on the currency pair for which you want to trade. There are many pairs such as EUR/ USD, GBP/USD, USD/CHF, USD/JPY and much more.

How should you trade?
When you are going to trade for a currency pair then your local currency and your target currency rates should be known to you. It means how much local currencies are required to purchase your target currency. The terms are also known as counter currency and base currency. For one unit of base currency a trader should know the quantity of counter currencies.

What should you know?
Sometimes some currencies do not get involved in a currency pair. It means local currencies are avoided and thus you should know for what pair you can easily trade. This pair is known as a Cross pair. It is very important to gather pips. As you gather a large number of pips you will get more profit. Pips are nothing but the difference between the last two digits of the decimal places which is the difference between base currencies and counter currency.

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Benefits of Forex Signals

August 4, 2014August 4, 2014 Forex Analysis

Why should I use Signal Trader?

Signal Trader lets you automate trading in your brokerage account, based on signals from proprietary traders, allowing you to tap into their trading expertise and gain a key understanding of their techniques.

Signal Trader’s innovative auto-execution mirroring system allows you to duplicate the trades of your favorite prop traders by automatically executing orders in your trading account, based on their signals, without any further intervention by you.

You can control your desired level of risk with money management options that allow you to define trading parameters, including trade size, as well as monitoring trades, positions and profit and loss, all in real time.

By using Signal Traders auto-execution mirroring system you can build up your portfolio based on the trading activity of the prop traders you wish to follow.

Signal Trader also provides clients with signal alerts based on the trading activity of prop traders, via email or on the charts displayed on each live trading room.

All the accounts displayed in Signal Trader’s live trading rooms are the real accounts of prop traders, trading with real money and as trades are executed they are displayed in real time.

What is Forex Signal?

August 4, 2014August 4, 2014 Forex Analysis

What is Forex Signal?

A Forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time.^[1] The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via email, website,SMS, RSS, tweet or other relatively immediate method.

Types of services

Services provided fall into four categories:

Unpaid/free signals
Paid signals from one provider whether by personal analysis or algorithmic analysis
Paid signals aggregated from multiple signal sources or ‘systems’
Signals supplied by trading software located on the trader’s computer, also known as a forex robot or EA (expert advisor)

Typical features offered by Forex signal service providers

The main services offered by forex signal suppliers are:

Exact or approximate entry, exit and stop loss figures for trades on one or more currency pairs
Supporting graphs and/or analysis for the signals
A trading history showing the number of pips profit/loss per month and/or the risk/reward ratio and actual trades. Sometimes (especially in the case of forex robots) this may be shown as back-tested results
One-on-one coaching, or additional interaction with the signal provider such as comments, forum, etc.
Account management whereby a subscriber’s account can be traded by the signal provider
Educational resources either via the internet or phone
A trial period for a lesser price

Although these are the main features of a signal supplier, not all of them offer the complete list of services.

Scams and fraudulent activity

As forex is popularly touted as a get-rich-quick method there are a number of services that supply signals of debatable quality, which do not answer the users’ expectations for profits.

Methodologies and trading strategies

The majority of signal providers focus on supplying signals based on technical analysis and a minority work on fundamental analysis or price action. Technical analysis, such as ichimoku and candlestick charting, show both short and long term price trends giving the signal provider flexibility in supplying a range of trade options. Fundamental analysis gives longer term trade ideas. Price action gives extremely short term trade ideas, often more suited to scalping.