DailyFX+ Market Conditions Outlook

NOTE: Data has once again been changed. Due to the ineffectiveness of the 30-day horizon, we are returning to the original 90-day time horizon. Definitions Volatility Percentile – The higher the number, the more likely we are to see strong movements in price. This number tells us where current implied volatility levels stand in relation to the past 90 days of trading. We have found that implied volatilities tend to remain very high or very low...

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Forex Strategy Outlook: US Dollar Action Bodes Well for Range Systems

Forex markets have remained rangebound as of late, boosting the appeal of currency range trading strategies. Indeed, the Euro/US Dollar currency pair initially looked as if it would break above critical resistance—ending the past month of directionless price action. Yet a US Dollar bounce quickly put an end to a sustained breakout. As a result, we continue to favor Range systems in our forex trading strategies. We reluctantly shifted our trading...

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Post of the Day: Evening Star

Student’s Question:Can candlestick patterns be used as conformational indicators? Power Course Instructor’s Response:Sure…Take a look at the chart below… We see a very well established trendline in place for about 4 months. A break of trendline support occurs when the bearish candle closes below the trendline. That in itself is significant. However, the pattern of which that candle is a part is an Evening Star. Since an Evening Star...

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Dollar Edges High as Growth and Risk Factors Shift

The US dollar has appreciated steadily against most of its major counterparts this past week (the notable exception being USDJPY). However, the greenback’s rise has been conspicuously reserved. Realistically though, most markets are following the same slow pace. This is due to a sense of equilibrium that has fallen over the market. ...

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Forex Correlations (July): How Do Currencies Move In Relation To Each Other?

Over the past month, volatile risk fluctuations have settled and put the focus back on the theme of the US dollar against all its major counterparts. This is largely a reflection of the importance of growth (as the US is the largest economy in the world and is therefore expected to pace a recovery) and the greenback’s position as the world’s reserve currency. The following is our monthly correlations update for July. As we have stated time and...

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How To Trade This Event Risk

The Canadian dollar may face increased selling pressures over the next 24 hours of trading as economists forecast employment to fall 35.0K in June, and fears of a protracted economic downturn could weigh on the exchange rate over the near-term as the central bank maintains a dovish outlook for future policy. At the same time, the International Monetary Fund raised its outlook for the world’s eighth largest economy, and projects economic activity...

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What To Look For Before The Release

Traders with access to market depth information via the FXCM Active Trader Platform may use it to gauge the potency of the economic data release as well as to shed some light on the market’s directional bias. Increasing volume ahead of the announcement will telegraph likely follow-through behind whatever move is to materialize, while an imbalance in available liquidity on the Bid versus the Offer side of the market will tell us the direction major...

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AD: Trading the Net Change in Canadian Employment

The Canadian dollar may face increased selling pressures over the next 24 hours of trading as economists forecast employment to fall 35.0K in June, and fears of a protracted economic downturn could weigh on the exchange rate over the near-term as the central bank maintains a dovish outlook for future policy. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ...

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