Euro vs. Dollar: A Wild Ride to 1.06 or a Slide to 1.00?
Evening Trading Family
The Euro and Dollar are in for a big adventure! If the Euro can jump over the big wall at 1.04, we might see it zoom up to 1.06, like scoring a high jump in track and field! But be careful, if it falls under 1.03, it's like tripping and tumbling down to 1.02 or even 1.00. After that, there might be a small bounce back up, but be ready because the Dollar could push it down again, like a game of tug-of-war where the Dollar's team is strong. It's going to be a thrilling ride!
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Kris/Mindbloome Exchange
Trade What You See
Forextrading
Tue 7th Jan 2025 Daily Forex Charts: 4x New Trade SetupsGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified 8x new trade setups this morning. As usual, you can read my notes on the charts for my thoughts on these setups. The trades being a AUD/USD Buy, EUR/USD Buy, GBP/USD Buy & NZD/USD Buy. I also discuss some trade management. Enjoy the day all. Cheers. Jim
Xauusd outlook The chart represents a 4-hour (4h) analysis of the Gold Spot (XAUUSD) trading on the FXOPEN platform using Heikin Ashi candlesticks. The current market prices are 2,636.27 for sell and 2,636.48 for buy. The key elements of the analysis include:
1. Trendline Support: An ascending trendline is drawn, showing a series of higher lows, indicating a bullish trend. The price is currently near this trendline, suggesting potential support.
2. Resistance Levels: There are two horizontal resistance levels marked:
The first resistance level is around 2,660.
The second resistance level is around 2,720.
3. Projected Movement: The chart shows a potential bullish scenario with arrows indicating the price might:
Move up from the trendline support to test the first resistance level at 2,660.
After breaking the first resistance, the price is expected to move towards the second resistance level at 2,720.
4. Bullish Continuation Pattern: The analysis suggests a bullish continuation with a breakout above the current resistance levels, supported by the upward trendline.
This chart reflects a bullish outlook, with the expectation of the price moving upward from the trendline support and testing the resistance levels at 2,660 and 2,720.
XAUUSDHello Traders! 👋
What are your thoughts on GOLD?
Gold, after a short-term upward movement, is now approaching a key resistance level, which coincides with the upper boundary of the short-term ascending channel. This resistance zone is expected to act as a strong barrier, potentially halting the bullish momentum.
As the price reaches this level, there is a high probability of a bearish reversal, leading to a decline toward the identified support level.
Don’t forget to like and share your thoughts in the comments! ❤️
Xauusd H4 signal Gold shed some ground on Friday after rising more than 1% on Thursday. The benchmark 10-year US Treasury bond yield trimmed pre-opening losses and stands at around 4.57%, undermining demand for the bright metal. Market players await next week's first-tier data
Gold price trades near $2,660.00 per troy ounce on Friday, with the daily chart signaling an emergence of a bullish bias. The metal price has climbed above the nine- and 14-day Exponential Moving Averages (EMAs), indicating a strengthening bullish momentum in the short term. Moreover, the 14-day Relative Strength Index (RSI) has risen above the 50 level, further supporting the development of a bullish bias.
Xauusd sell 2639
Support 2610
Long Target 2580
Resistance 2685
Xauusd sell signal
The XAU/USD pair may test initial support around the nine- and 14-day EMAs at $2,635.00 and $2,633.00, respectively. Further support appears around its monthly low of $2,583.39, recorded
Trading Forex vs Stock CFDs: Differences and AdvantagesTrading Forex vs Stock CFDs: Differences and Advantages
Forex and stock markets are two of the most popular options for traders, each offering unique opportunities and challenges. While forex focuses on trading global currency pairs, stocks involve buying and selling shares of companies. Understanding their differences—from market size and liquidity to trading costs and risk—can help traders choose the market that best suits their strategy. Let’s break down the key differences between forex and stocks.
What Is Forex Trading vs Stock Trading?
Let us start with some general information that you may already know. The forex market revolves around trading currency pairs, such as EUR/USD, and operates globally, making it the largest financial market with a daily turnover exceeding $7.5 trillion (April 2022). It’s decentralised, meaning transactions occur directly between participants across time zones, with no single central exchange.
In contrast, the stock market involves buying and selling shares of publicly listed companies, like Tesla or Nvidia, through centralised exchanges such as the NYSE or LSE. Trading hours are fixed and tied to each exchange’s location, creating more defined trading windows.
Forex markets are driven by macroeconomic events and international factors, while stocks are mostly influenced by company-specific developments like earnings reports and industry trends.
In this article, we will talk about Contracts for Difference (CFD) trading. To explore live forex and stock CFD trading opportunities, head over to FXOpen’s free TickTrader platform.
Forex vs Stock Trading: Market Accessibility and Trading Hours
One of the most important differences between forex and stock markets is their structure and timings.
Forex: Open 24/5
The forex market operates 24 hours a day, five days a week, cycling through major trading sessions in Sydney, Tokyo, London, and New York. This continuous nature allows traders to react to global events in real-time, whether it’s midday in the UK or midnight in Asia. For example, a trader monitoring the London session can seamlessly transition into the New York session without waiting for markets to reopen.
Stocks: Fixed Timeframes
Stock trading is tied to the operating hours of centralised exchanges. For example, the NYSE runs from 9:30 am to 4:00 pm EST, while the LSE operates from 8:00 am to 4:30 pm GMT. This also applies to stock CFDs. Outside of these hours, activity is limited to pre- and post-market trading, which typically sees lower liquidity and higher spreads.
Conclusion
Forex provides flexibility for traders who value around-the-clock access, while stock traders need to plan their activity within set hours. This makes forex especially appealing to those with unconventional schedules or a need for an immediate market response.
Trading Stocks vs Forex: Market Size and Liquidity
The size and liquidity of a market dictate how efficiently trades are executed and at what cost. Forex and stock trading differs significantly in these areas.
Forex: The $7.5 Trillion Giant
The forex market stands as the largest in the financial world, with daily trading volumes exceeding $7.5 trillion (April, 2022). This immense size ensures high liquidity in many pairs, meaning they can be traded almost instantly with minimal price slippage. Tight spreads—often as low as fractions of a pip—make forex particularly attractive to traders seeking frequent, precise entries and exits.
Stocks: Liquidity Highly Varies
The stock market is smaller and is subject to more complicated factors, therefore, traders may suffer when opening and closing trades. First, stock liquidity highly depends on the company and its trading volume. Blue-chip stocks like Apple or BP typically offer high liquidity, which contributes to smooth transactions with competitive spreads. However, smaller, less-traded stocks may suffer from wider spreads and slower execution, particularly during market volatility. Second, trading hours affect market liquidity, making it challenging to trade before and after market close.
Conclusion
Forex’s unmatched liquidity mainly ensures consistent trade execution across major pairs. In contrast, stock traders must carefully choose assets to avoid issues with low liquidity, especially when trading small caps or during off-peak hours.
Forex vs Stocks: Volatility and Price Drivers
High volatility creates opportunities for traders by producing price swings that can be capitalised on. However, the factors driving these movements differ significantly between forex and stocks.
Forex: Global Events and Macro Trends
Forex volatility is often driven by large-scale economic and geopolitical events. Central bank interest rate decisions, employment data, inflation reports, and geopolitical tensions can cause significant price shifts. For instance, a hawkish Federal Reserve announcement can lead to USD appreciation against other currencies.
Currency pairs also experience varying levels of volatility depending on their classification. Major pairs like EUR/USD tend to be less volatile than exotic pairs such as USD/ZAR, where price swings can be much more dramatic due to lower liquidity and heightened economic risks.
Stocks: Company-Specific Drivers
Stock volatility is more granular, often linked to specific companies. Earnings reports, mergers, leadership changes, or industry news can move a single stock significantly. Broader market trends, such as sector-wide sentiment shifts, can also drive volatility, but these are secondary to company-specific factors. For example, Tesla’s earnings announcement can cause sharp movements in its share price without impacting other automakers.
Conclusion
Forex volatility is broader and influenced by global macroeconomic trends, while stocks are typically driven by isolated, company-specific events. This distinction makes forex appealing for traders focusing on macro analysis and technical patterns, whereas stock traders often blend fundamental company research with broader market trends to identify trading opportunities.
Forex Trading vs Stock Trading: Trading Costs and Leverage
Trading costs and leverage significantly impact a trader’s strategy and potential returns. And choosing between trading stocks or forex is no exception.
Forex: Potentially Low Costs and High Leverage
Forex may provide opportunities for lower-cost trading, with fees paid via commissions and spreads. For instance, forex commissions at FXOpen start at $1.50 per lot, depending on account size. Spreads are usually tight for major pairs like EUR/USD, making costs relatively low. At FXOpen, you can trade with spreads from 0.0 pips.
Forex offers significantly higher leverage compared to stocks. While this allows traders to operate with smaller capital, it requires disciplined risk management to avoid significant losses.
Stocks: Higher Costs, Lower Leverage
Stock trading via CFDs typically incurs higher costs compared to forex, with commissions charged per trade or embedded in spreads. For instance, at FXOpen, US stock CFD traders can see commissions charged from 0.04% to 0.1%, varying by account size, with a minimum commission of $1 per order.
Leverage is also lower—usually capped at 1:5 for retail traders, reflecting the relative instability of stock prices compared to currencies.
Conclusion
Forex CFDs offer lower costs and higher leverage, making it popular among traders with a short-term focus. Stock CFDs, while more expensive, give access to financial instruments for portfolio diversification. Choosing between them depends on the trader’s goals, risk tolerance, and preferred market dynamics.
Forex vs Stocks: Regulation and Market Transparency
Regulation and transparency are critical for traders when choosing between forex and stocks. Both markets are regulated, but their structures create distinct differences in how pricing and trade execution work.
Forex: Decentralised and Broker-Driven
The forex market is decentralised, meaning trades are executed through brokers rather than central exchanges. This structure can lead to variations in pricing and execution quality, depending on the broker. Therefore, traders need to find regulated brokers to avoid issues with unreliable pricing or execution. For example, FXOpen is regulated by the FCA and CySEC to ensure fair practices and client fund protection.
Stocks: Centralised and Transparent
Traditional stock markets operate on centralised exchanges like the NYSE or LSE, where all trades are matched through a regulated order book. This ensures consistent pricing and high transparency, as traders can see bid and ask levels across the market. At the same time, stock CFDs are traded on a broker level.
Conclusion
Forex and stock CFDs’ decentralised nature provides flexibility but relies heavily on broker reliability.
Forex Trading vs Stock Trading: Suitability for Different Trader Types
Deciding between forex trading and stock trading comes down to choosing between each market’s unique characteristics.
Forex: Favouring Short-Term Strategies
Forex is ideal for short-term traders, such as scalpers and day traders. Its high liquidity and round-the-clock trading mean there’s always an opportunity to act on price movements, especially during overlapping sessions like London and New York. The use of leverage, often higher in forex, makes it appealing for those seeking to amplify returns on smaller price shifts (please remember that higher leverage leads to higher risks).
Traders in forex often focus on technical analysis, utilising chart patterns and indicators, and study macroeconomic data to analyse short-term trends. This market tends to suit individuals who are comfortable with frequent decision-making and quick trade execution.
Stocks: A Blend of Short and Medium-Term Trading
Stock trading, particularly via CFDs, is more versatile, attracting both medium-term and swing traders. While day trading is possible, the structured trading hours and broader price swings make stocks particularly appealing for those who prefer holding positions for days or weeks.
Stock traders often lean on company-specific fundamentals, such as earnings reports or sector trends, alongside technical analysis. This market suits individuals who prefer analysing individual businesses or sector dynamics over global macro trends.
Conclusion
Forex trading caters to short-term strategies, attracting traders who thrive on quick decisions and frequent trades, while stock trading offers flexibility, appealing to those who prefer a mix of short- and medium-term strategies with a focus on company fundamentals. Each market has unique characteristics, allowing traders to choose based on their style and objectives.
The Bottom Line
Both forex and stock markets may offer unique opportunities tailored to different trading strategies and goals. Whether you’re drawn to forex’s 24/5 accessibility or the structured transparency of stocks, understanding their key differences is crucial. Ready to explore forex and stock CFD trading? Open an FXOpen account today and take advantage of competitive spreads, fast execution speeds, and a wide range of instruments.
FAQ
Is the Stock Market Bigger Than Forex?
No, the forex market is significantly larger. Forex sees daily trading volumes exceeding $7.5 trillion (April, 2022). This makes forex the largest and most liquid market, popular among traders seeking tighter spreads and fast execution.
What Is the Correlation Between Forex and Stock Markets?
The relationship varies. Commodity-linked currencies like AUD or CAD often correlate with related stocks or indices. Broader market sentiment, such as risk-on or risk-off conditions, can also drive both forex and stocks in similar or opposing directions.
Should I Invest in Forex or Stocks?
It depends on your trading style. Forex could suit short-term traders focusing on global economic trends, while stocks might appeal to those who prefer company analysis or medium-term strategies.
Which May Offer Greater Returns, Forex or Stocks?
Ultimately, potential returns depend on your strategy and discipline. Forex offers higher leverage for short-term trades, but higher leverage leads to higher risks. Stocks may provide better longer-term growth potential, but they are subject to high volatility.
Which Is Riskier, Forex or Stocks?
Forex can be riskier due to leverage and rapid price swings. Stocks also carry risks, particularly from company-specific events, but lower leverage makes losses potentially less amplified. The risk depends on your approach and management.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
EUR/USD Long and NZD/JPY ShortEUR/USD Long
Minimum entry requirements:
• 1H impulse up above area of value.
• If tight 1H continuation follows, 15 min risk entry within it, or reduced risk entry on the break of it.
NZD/JPY Short
Minimum entry requirements:
• 1H impulse down below area of interest.
• If tight 5 min continuation follows, reduced risk entry on the break of it.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
gold sell old price trades near $2,660.00 per troy ounce on Friday, with the daily chart signaling an emergence of a bullish bias. The metal price has climbed above the nine- and 14-day Exponential Moving Averages (EMAs), indicating a strengthening bullish momentum in the short term. Moreover, the 14-day Relative Strength Index (RSI) has risen above the 50 level, further supporting the development of a bullish bias.
On the upside, the XAU/USD pair may explore the area around the psychological resistance of $2,700.00, followed by the next barrier at its monthly high of $2,726.34, reached on December 12.
The XAU/USD pair may test initial support around the nine- and 14-day EMAs at $2,635.00 and $2,633.00, respectively. Further support appears around its monthly low of $2,583.39, recorded on December 19.
A Financial Times report noted that the People's Bank of China (PBoC) anticipates an interest rate cut this year at an appropriate time. Traders are closely monitoring the potential recovery in China’s economy and its effect on Gold demand. President Xi Jinping reaffirmed his commitment on Tuesday to prioritizing economic growth, promising more proactive policies to bolster China's economy in 2025.
xauusd sell 2639
suppot 2578
xauusd confom signal
Is This the Dip or Just the Market Playing Hard to Get?🚀 Patience is key. 👇
💡 USD/CHF is cooking up something spicy here!
🔸 We're in a solid ascending channel (orange lines for clarity).
🔸 The retracement suggests a potential breakout soon.
🔸 "Potential Buy Here" 👀—yep, right there near the support trendline.
This is where discipline shines, folks. 📈 Wait for confirmation, ride the wave, and let the market come to you.
EURUSD THREE POSSIBLE OUTCOMESWe have a decent weekly range to work with of just over 230 pips. First setup is for price to pullback a bit higher without breaking the previous weeks high targeting the low
Price could also take the previous weeks high for a deeper pullback then wait for price to bearish confirmation to target the low. This setup would take slightly longer to play out than the first.
The last out come is for price to go above the December's high and that would invalidate this setup and I will post my insights if that happens.
Flow with the market and use lower timeframe confirmation if you see a good setup.
EURUSD: Still bearish long term. Don't buy a falling knife.EURUSD remains heavily bearish on its 1D technical outlook (RSI = 34.500, MACD = -0.006, ADX = 21.396) as the 1 month Channel Down remains intact. The current 4H rebound is the bullish wave of the Channel and technically once the 4H MA50 is hit, it will turn into a bearish opportunity again. We are waiting for that signal to sell towards the bottom of the Channel (TP = 1.0200).
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USD/CAD Long and SUGAR/USD ShortUSD/CAD Long
Minimum entry requirements:
• Tap into area of value.
• 1H impulse up above area of value.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
SUGAR/USD Short
Minimum entry requirements:
• 1H impulse down.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
Who Moves the Forex Market | Forex Market Players
Forex is the largest market in the world, with the tremendous daily trading volumes and millions of market participants.
In this educational article, we will discuss who moves that market and who are its 6 the most significant players.
1. Governments
Governments tend to set economic goals and influence the markets with their political decision. They define the course of their nations, issuing policies and imposing regulations.
2. Central banks
Central banks implement the decisions of the governments, applying multiple instruments:
Central banks control the emission of the money, shifting the supply and demand.
They control interest rates and define the credit policies.
Above is a top 10 of the biggest central banks by total assets.
Central banks control the international trade and sustain the exchange rates of the national currencies by interventions and handling the foreign currencies and gold reserves.
3. Commercial banks
Commercial banks handle the international transactions.
Over 70% of total Forex Market transactions directly refers to the actives of commercial banks.
In a pie chart above, you will find the biggest commercial banks by trading volume.
Commercial banks are also involved in speculation activities, benefiting from market fluctuations by relying on various strategies.
4. Corporations
Corporation is the business that operates in multiple countries.
With the constant capital flow between its branches and counterparts, corporations are permanently involved in a currency exchange.
Also, corporations usually hedge currency risks, storing their liquidity in particular currencies.
5. Investment funds
By investment funds, we imply the international or domestic professional money management companies. Dealing with hundreds of millions of investments, they quite often are operating on Forex market, buying foreign assets, speculating and hedging.
Below, you will find the list of largest world's hedge funds.
6. Retail traders
The main goal of retails traders and speculators is to make short terms profits from their transactions on the market.
Typically, the activities of traders constitute a relatively small portion of total trading volumes.
Knowing which forces move the forex market, you can better understand how it works. The spot prices that you see on the charts reflect the sentiment of all the above-mentioned participants.
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GBP/USD Short, NZD/USD Short and USD/CAD LongGBP/USD Short
Minimum entry requirements:
• Corrective tap into area of value.
• 4H risk entry.
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of value.
• If tight 5 min continuation follows, reduced risk entry on the break of it.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
NZD/USD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of value.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
USD/CAD Long
Minimum entry requirements:
• Tap into area of value.
• 1H impulse up above area of value.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
Tue 31st Dec 2024 GBP/JPY Daily Forex Chart Sell SetupGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified a new trade setup this morning. As usual, you can read my notes on the chart for my thoughts on this setup. The trade being a GBP/JPY Sell. Enjoy the day all. Cheers. Jim
GBP/USD Short, EUR/GBP Short and NZD/USD ShortGBP/USD Short
Minimum entry requirements:
• Corrective tap into area of value.
• 4H risk entry.
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of value.
• If tight 5 min continuation follows, reduced risk entry on the break of it.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
EUR/GBP Short
Minimum entry requirements:
• If 3 touch 1H continuation or 2 touch 1H continuation with 3 touch structural approach forms, 15 min risk entry within it.
NZD/USD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of value.
• If tight 15 min continuation follows, 5 min risk entry within it, or reduced risk entry on the break of it.
Mon 30th Dec 2024 AUD/NZD Daily Forex Chart Sell SetupGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified a new trade setup this morning. As usual, you can read my notes on the chart for my thoughts on this setup. The trade being a AUD/NZD Sell. Enjoy the day all. Cheers. Jim
GBPUSDHello Traders! 👋
What are your thoughts on GBPUSD?
The GBP/USD pair is currently trading below a key resistance area. It is anticipated that after a corrective move to the specified resistance zone, the price may reverse and enter a bearish phase.
Don’t forget to like and share your thoughts in the comments! ❤️
EURUSD: 4H MA50 crossing signals new rally.EURUSD is remains bearish on its 1D technical outlook (RSI = 41.523, MACD = -0.006, ADX = 15.575) but today it crossed and closed a 4H candle over the 4H MA50 for the first time since December 10th. Along with that, it crossed above the LH trend-line, thus technically invalidating the short term bearish trend. Given the recent December 18th double bottom on the S1 Zone, the pattern that prevails is a Rectangle, thus today's breakout is technically targeting the patterns top. Consequently our target is near the R1 Zone (TP = 1.0600).
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