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Morning Technical Newsletter EUR/USDYesterday price fall to our support area at 1.1433. Let's check fundamental view of USD.  The official level of unemployment for September in the USA has fallen to 3.7%, a level not seen for 49 years, since the time of the Hippies in 1969. The official unemployed figure, it must be recalled, relates to the number of people registered as unemployed and actively seeking work. Many economists regard an unemployment level of 5% as the functional level for full employment (but their definition of unemployed would be without a job and wanting one, which is different). The Organisation for Economic Cooperation and Development (OECD) has warned about what it refers to as people “at the fringes” of the employment market – a significant population in the US economy, according to OECD. A proportion of these uncounted unemployed (or not regularly employed) people are suggested to be victims of the “opioid crisis”, those addicted to or abusing prescription drugs. The news is not completely positive since the job creation rate for September came in below expectations at 134000 and hourly earnings increased at 2.8% in September, down marginally on the August figure of 2.9%. Usually, if the employment market is strong, wages would expect to rise as employers try to attract workers. However, revision of the July and August job creation figures were revised upwards by 87000 jobs. Jobs were created particularly in the professional and business service sector; in healthcare and construction. However, September saw a negative impact due to the hurricane/tropical storm Florence which was blamed for the loss of 18000 jobs in the leisure and hospitality sectors. Obviously, jobs will have been created in the construction and infrastructure/repair sectors as damaged communities struggle to rebuild after the storm. As yet, US job creation data has not shown any clear effects from the protectionist measures implemented by the Trump administration on exports from nations that the US regards as taking unfair advantage of sectors of the US economy.
Long
by GroundStoneHoldings
Morning Technical Newsletter EUR/USDEUR/USD: Let's check Eur/Usd the most tradable forex pair. Weekly perspective: Last week pair moves from the high 1.1815 to the low 1.1570 so in the range of 240 pips. At the and of the week we have formed BEOB candle as strong signals for more bearish trend for this week. Daily perspective: As we already said that we have BEOB on weekly chart we also have, BEOB on four days ago on the daily chart, so we have a really strong downside trend. For the next target, we can have a support at 1.1530 (60 pips). Areas of consideration: We can look for a short position on the first two resistance mentioned below: Resistance 1: 1.1620 Resistance 2: 1.1650 For the targets we can use the first two supports mentioned below: Support 1: 1.1570 Support 2: 1.1530 Today’s data points: German retail sales m/m; FOMC member Bostic speaks; US ISM manufacturing PMI.
Short
by GroundStoneHoldings
Education post 2/100 - How to trade triangle pattern?Symmetrical Triangle A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle. What’s happening during this formation is that the market is making lower highs and higher lows. This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend. If this were a battle between the buyers and sellers, then this would be a draw. This is also a type of consolidation. In the chart above, we can see that neither the buyers nor the sellers could push the price in their direction. When this happens we get lower highs and higher lows. As these two slopes get closer to each other, it means that a breakout is getting near. We don’t know what direction the breakout will be, but we do know that the market will most likely break out. Eventually, one side of the market will give in. So how can we take advantage of this? Simple. We can place entry orders above the slope of the lower highs and below the slope of the higher lows. Since we already know that the price is going to break out, we can just hitch a ride in whatever direction the market moves. In this example, if we placed an entry order above the slope of the lower highs, we would’ve been taken along for a nice ride up. If you had placed another entry order below the slope of the higher lows, then you would cancel it as soon as the first order was hit.
Education
by GroundStoneHoldings
Education post 1/100 - How to trade pin bars?The Pin Bar Setup I bet you have seen many pin bars on your Forex charts. Maybe you haven’t been aware that you are looking at a pin bar formation, but you most likely have come across this candle on the chart Bullish Pin Bar A valid, tradeable bullish pin bar is located at the end of a bearish trend and its lower candle wick goes below the overall price action. If you spot a bullish pin bar setup on the chart, this will setup a nice opportunity for a long position. Bearish Pin Bar The same is true for bearish pin bars but in the opposite direction. The bearish pin bar is located at the end of a bullish trend and its longer candle wick is the upper area. In this manner, the longer wick is sticking out above the price action. The bearish pin bar is usually a good sign of an upcoming price reversal in the bearish direction.
Education
by GroundStoneHoldings