As I look at the price action in EURUSD it reminds me of this article in our blog, which is worth a read
What Does it Mean When a Currency Feels “Bid in an Offered Market?”
What Does it Mean When a Currency Feels “Bid in an Offered Market?”
USDJPY 4 HOUR CHART – CARRY TRADES?
Break of 158.25 leaves a void until the major 160.16 high. Normally this would be a clear path hher but BoJ intervention risk cannot be ignored.
On the downside, expect a very strong bid if 157.25 becomes support although bids likely below the market as long as above 157.50
As I noted this week, putting the pieces of the puzzle together, affirmer stocks and a firmer USDJPY suggest the JPY could be a funding currency of choice for carry trades.
USDCHF 4 HOUR CHART – FX RATE PROTESTR?
The SNB decisiob to cut interest rates was proably partly in trsponse to the recent appreciation of the CHF/
As this chart shiws, .8992 is the key level that would need to be broken to break the downtrend (trendline as well).
In any case, the rate cut has restored a 20way risk
A look at the day ahead in European and global markets from Ankur Banerjee
British inflation may have returned to its 2% target for the first time in nearly three years, setting the stage for the Bank of England to cut interest rates – just not on Thursday.
June BoE MPC Preview:
Inflation still the stumbling block to rate cuts
The BoE’s May MPC meeting saw Deputy Governor Dave Ramsden join long-term dove Swati Dhingra in calling for an immediate 25 basis point cut in interest rates. The other seven members all again opted for no change. Approaching this month’s meeting, there has been a further, but less than wholly convincing, decline in inflation, while wages have remained stubbornly robust. Consequently, with the real economy having moved out of recession, the overall mix has left speculators expecting no change in Bank Rate and the first cut to be deferred until at least the first meeting after the summer break in August.
Econoday
CRWD (NASDAQ)
Missed Out on Nvidia? Here’s Another Top AI Stock to Buy Now.
CRWD stock has risen by 471.7% over the last five years. The company’s revenue has climbed from $249.8 million in fiscal 2019 to $3.06 billion in fiscal 2024. Analysts expect its revenue to grow by double digits over the next two years, and rate the stock as a “strong buy” overall.
3 CENTRAL BANK DECISIONS ON THURSDAU. THE KEY ONE IS THE BANK OF ENGLAND
If you do not believe the Power of 50, look at this 5 minute EURUSD chart, see how your emotional bias changes when it trades above/below 1.0750
EURUSD 4 HOUR CHART- – WATCH 1.0750
EURUSD mirroring the USDX chart with momentum to the downside broken after the break of 1.0745 yesterday.
As noted earlier, a move above 1.0750-1.0760/65 would be needed to add legs to the move up. For day traders, a.0750 will set the tone.
The trendline on this chart is acurrently round Knez’s 1.0780 level posted yesterday.
Brian Swint at Marketwatch
European Stock Markets Slip, Asia Gains Amid Fed Rate-Cut Hopes. Treasury Yields Suffer.
The prospect of lower interest rates and the boom in technology stocks in the optimism that artificial intelligence will boost profits is helping markets worldwide. … . … “if conditions continue to ease as expected, an easing of policy later this year would be appropriate.”
USDX 4 HOUR CHART – EURUSD PROXY (57.6% OF THE INDEX
Let’s start the day by looking at the USD INdex, where momentum has TILTED to the downside.
However, using USDX as a EURUSD proxy suggests EURUSD would need to extablish above 1.0750 (AND THEN 1.0760-65) to Put pressure on the USDX downside where 105.14 is THE FIRST LEVEL OF support.
OTHER CURRENCIES VS. THE DOLLAR
AUDUSD BID BUT HELD A TEST OF .6675 – SCROLL DOWN TO SEE CHART
USDJPY HIGH YESTERDAY WAS 2 PIPS BELOW THE KEY 158.25 HIGH
EURUSD CAN’T MAKE UP ITS MIND. BUT FINDS SUYPPORT WHILE ABOVE 1.0720.. RANGE WIDENED TO A PALTRY 1.0725-1.0742 (WON’T LAST)
EURGBP A TOUCH LOWER WAITING FOR THE BOE TOMORROW
US holiday clearly dampening trading activity
OnlineBroker.Fr is the best resource for French language information on the best online trading platforms and crypto exchanges in France.
You may find this useful
What is Risk Management in Trading – Forex Forum
For any trader, managing risk is essential to success. But what exactly is risk management? In this blog post, we’ll explore what risk management is and how it can help you become a successful trader.
We’ll also look at some common mistakes that traders make when it comes to managing their risks. After all, if you’re not managing risk appropriately, you’re just a gambler. So if you’re ready to learn more about risk management, read on!
What is Risk Management in Trading?
Risk management is the process of assessing, controlling, and managing risk within a trading portfolio. This involves defining trading goals and understanding potential losses that could occur as part of the trading process.
It also includes identifying potential risks, such as market volatility or sudden changes in the market, understanding how these risks can affect your profits, and taking steps to limit potential losses.
In general, risk management should be a priority for all traders. By properly managing your risks and using effective strategies, you can minimize potential losses and increase the chances of making successful trades.
Common Mistakes When Managing Risk in Trading
Unfortunately, many traders make mistakes when it comes to managing their risks. Here are some of the most common mistakes that traders make when it comes to risk management:
Not Setting a Trading Plan:
Many traders don’t have a detailed trading plan, which is a key component of risk management. Without a trading plan, traders are more likely to take risks that could have otherwise been avoided. It’s important to establish clear trading goals and a plan for how to reach those goals.
Not Understanding Risk:
Many traders fail to understand the risks associated with certain trades, which can lead to serious losses if they don’t take the time to research and understand the risks involved. It’s important to have a thorough understanding of the markets you’re trading in before taking any risks.
Not Taking Advantage of Stop Losses:
Stop losses are an essential component of risk management, as they help to limit potential losses in the event of a market downturn or sudden changes in the market. However, many traders don’t take advantage of stop losses and end up taking larger risks than necessary.
Over-Trading:
Over-trading is a common mistake made by many traders. This involves taking too many trades, which can lead to losses if the market turns against you. Look, all traders love the price action. It’s exciting to take a position and watch your P/L go up and down. But don’t become addicted to the price action for the sake of just having a position. It’s important to only take trades when the setup is right and avoid over trading.
Not Diversifying Risk:
Diversification is another important part of risk management. By diversifying your trades, you can spread out risk and limit potential losses if the market turns against you.
Why is Risk Management Important in Trading?
Risk management is a critical factor in success when trading in the markets. It involves understanding and controlling what could potentially impact your trades and actively analyzing scenarios that may occur.
Without proper risk management, traders are leaving themselves vulnerable to potential losses which could be catastrophic for their investments.
Good risk management also allows traders to effectively assess opportunities and make better decisions that take into account volatility or leading indicators of future market performance.
Simply put, risk management can provide peace of mind so traders can enjoy the highs of profitable investments while minimizing losses when markets start to dip.
What are Some Common Risk Management Strategies?
Common risk management strategies used by traders include setting stop-loss orders, limiting capital exposure, and diversifying investments to minimize volatility.
Another essential approach for traders is to set predetermined targets for both profits and losses to help stabilize your exposure. To further limit potential losses and maximize gains, traders should always be aware of economic news and other world events that might affect the market.
How to Implement Risk Management in your Trading Plan
Implementing effective risk management into your trading plan is incredibly important for successful and profitable trading. It can help you to control the amount of draws you take in any given trade, and it can also protect against large losses which could potentially wipe out your entire trading account.
A good risk management plan should include determining the amount of capital at risk on each trade, setting predetermined stop-losses to limit downside exposure, and having a strict, disciplined approach towards minimizing losses:
never increasing position size
never risking more than you are comfortable with, and always controlling potential risk-reward ratios.
Taking the time to set up a comprehensive yet flexible risk management plan will put you in a better position when it comes to positive returns in the long run.
Risk management is an important part of trading. It allows you to trade with less stress and more confidence. There are many different risk management strategies, so it is important to find one that fits your trading style.
Proper risk management can help you make money in the long run by preserving your capital and preventing you from making careless mistakes.
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