With USD/JPY’s volatility surging amidst rumours of impending Bank of Japan (BoJ) intervention, let’s examine the pivotal factors driving this market.
Monetary Policy Divergence Fuels Rally
USD/JPY has surged since the start of the year, propelled by a notable divergence in monetary policy between the Federal Reserve and BoJ. Last Friday, the BoJ's decision...
The US economy grew 1.6% in the first quarter of 2024. The actual figure was lower than the estimates of 2.5%, which caused some re-pricing of risk sentiment in markets after the data was released.
Albeit the data was lower than anticipated, the US economy still managed to grow in the first quarter, a stark contrast to what is expected in many countries in...
Oil futures are struggling to regain their footing this week as traders perceive that risks of the Middle East tensions impacting supply have eased. The lack of damage or casualties following the retaliatory attacks Israel launched on Iran on Friday has led Iranian officials to deny any further retaliation from Tehran, a successful effort from diplomats who have...
US stock indices are attempting to halt their declines on Monday after heavy selloffs last week. The US 100, which focuses on the technology sector, dropped over 5% last week, its worst weekly performance since October 2022. The index is down over 8% from the highs at the end of March.
Resilient US economic data and geopolitical concerns have pushed investors...
Investors have been flocking to safe assets recently as tensions in the Middle East have escalated with two-way retaliatory attacks between Israel and Iran in the past few weeks. This has meant the bullish momentum has been building in the US dollar, weighing on most other major currencies.
GBP/USD has been caught in the crossfire but the weakening fundamentals...
The FTSE 100 has reached a new record high after pushing through the bearish sentiment that has taken over global equities in the past few weeks. The index, which is made up of the biggest 100 companies in the UK, closed above the previous high of 8,045 on Monday following a 1.6% rise on the day. The rally gathered strength on Friday when the index saw some...
XAU/USD threatens to drop below $2,300 for the first time in two weeks as easing geopolitical tensions drives investors away from safer assets. Equities have been attempting to recover this week as risk appetite increases, meaning investors are moving away from safe havens like the US dollar and gold, pulling away from their recent highs on Monday.
Profit-taking...
Imagine a world where a single day of price action can make or break your month. Well, if you’re a momentum-focused day trader, this world is not too far from reality.
Day traders tend not to hold overnight risk, a strategy that aligns with their preference for quick, intraday trades. This approach means they must enter and exit positions swiftly, often multiple...
With the FTSE 100 closing at a record high on Monday, let’s take a closer look at the breakout and the catalysts behind it.
Catalysts Behind the Breakout
The FTSE 100's breakout can be attributed to several key catalysts:
Expectations of UK Interest Rate Cuts: Anticipation of interest rate cuts from the Bank of England has weakened the pound, boosting the...
The pound weakened across the board on Friday after unexpectedly tepid retail sales numbers showed signs of stagnation in the UK economy.
Retail sales remained unchanged between February and March, following a revised 0.1% increase in the previous month, falling short of economists' more optimistic forecast of a 0.3% expansion.
Let’s delve into two GBP currency...
The Power and Beauty of Price Gaps
Price gaps represent a clear imbalance in supply and demand, making them one of the purest representations of momentum in financial markets. These gaps occur when there is a significant disparity between the closing price of one period and the opening price of the next, indicating a sudden surge in buying or selling pressure.
...
With the S&P pulling back from highs, let's explore where prices might find support.
Retreat and Rebound: Analysing S&P 500's Pullback Opportunities
It’s finally happened: the S&P 500 has started to retreat after a strong upward trend. Between late October and early November, the US headline index surged by 28%, marking a significant uptrend.
However,...
With EUR/USD reaching its lowest point since November, let's delve into the driving forces behind this downturn, identify critical levels to monitor, and analyse the lower timeframe price action.
Factors Driving the Decline
There are three key factors currently driving EUR/USD lower:
1. Sticky US Inflation: The US dollar is strengthening across the board...
Welcome to Swing Mapping Part 3, where we delve into three different approaches to trade management using swing mapping methods.
Trade management always represents a trade-off between taking profits early and letting winning trades run. There is no perfect solution, but by understanding different approaches, traders can tailor their strategies to their risk...
Nvidia (NVDA)
Having surged higher during the first quarter of the year, Nvidia’s share price is currently in ‘mean reversion mode’.
When it comes to measuring mean reversion, we can use traditional simple or exponential moving averages. We can see from Nvidia’s daily candle chart (below) that price has not yet reached the 50-day moving average which continues...
Having broken through long-term resistance and come within touching distance of the February 2023 highs, the FTSE took a pause for breath last week pulling back from recent highs.
Pullbacks provide excellent opportunities for traders to position themselves within established trends at attractive levels of risk/reward, and the FTSE’s recent pullback has put trend...
With Apple dramatically underperforming the wider market, we shine a spotlight this tech giant as it retest key levels of long-term support.
Apple Decline Amid Market Rally: A Departure from Historical Trends
Apple's share price has declined since the turn of the year due to various factors such as slowing iPhone sales, antitrust concerns, and perceived lag...
Welcome to part 2 of our 3-part series on swing mapping – a highly underestimated technique that can be applied to any market on any timeframe.
In Swing Mapping Part 1 we outlined the key principles of swing mapping which involved identifying potential swings, monitoring them, and drawing conclusions about market structure as swings levels are held or broken....
