Feb 26 (Reuters) – A look at the day ahead in Asian markets.
Stock markets in Asia start the week with clear momentum behind them, especially in Japan and China, but may be vulnerable to a spot of profit-taking as investors pause for breath after last week’s tech- and AI-fueled global buying frenzy.
EURUSD – Outlook for tomorrow
Support at 1.08050 and 1.07800 – bellow would open a way for test of 1.07450
Resistance in 1.08800 / 1.09000 area
As much as a correction to down is needed, it still can first try Up tomorrow morning.
This is not a good place for Buying, and still no reason to Sell it.
We’ll go with smaller time frames , and follow as it develops.
Week Ahead: EURGBP
EURGBP Daily Chart
The consolidation range is clear at .8498-.8578
This suggests .8500 will remain pivotal as only a firm break would open the door to another leg down.
On the other hand, only a firm break of .8578 would suggest the low is in for now/
Why am I highlighting EURGBP?
1) If you trade EURUSD and/or GBPUSD, you need to keep an eye on EURGBP as flows involving this cross often have an impact on price moves in EURUSD and GBPUSD
2) Month end (Feb 29): I have observed increased activity in EURGBP at month end, which in turn often sees erratic flows not only in the cross but in EURUSD and GBPUSD. So keep a close eye at month end as it can offer trading opportunities in respective pairs as well as in EURGBP. In this regard, watch price action throughout the day but especially leading up to and around the 4 PM London fixing.
Newsquawk.com Week Ahead 26th February – 1st March
Mon: US New Home Sales (Jan), Dallas Fed
(Feb), Japanese CPI (Jan), UK Nationwide (Feb)
Tue: US Democratic Primary – Michigan; German GfK (Mar), US Durable Goods (Jan), Consumer Confidence (Feb), Richmond Fed (Feb)
Wed: RBNZ Policy Announcement, Australian CPI (Jan), Swedish PPI (Jan), EZ Consumer Confidence Final (Feb), US GDP 2nd/PCE Prices Prelim. (Q4), Japanese Retail Sales (Jan)
Thu: Australian Retail Sales (Jan), US PCE (Jan), Canadian GDP (Q4)
Fri: Chinese NBS PMIs (Feb), EZ CPI (Feb), US ISM Manufacturing PMI (Feb).
USDJPY Weekly Outlook
Supports at 149.800 and 148.650
Resistance 152.000
There is not much to say about this pair, except that Pattern wise it is destined to try 152.000 area.
Problem comes from the fact that we have already double top in place, and if rejected for the third time, it will be not only technically visible, but would mean that BOJ decided to put Money where their Mouth is.
We can always see sharp drops in JPY , followed by even sharper ascent . But any possible drop below 145.000 and consequently 143.300 would put the whole Up trend in question.
USDJPY 15 minute chart
Similar to others, USDJOY is ending the week with a whimper but getting a reprieve from the dip in US bond yields
Wise rRngw `149.53-150.89
I wouldn’t be surprised to learn the BoJ has been covertly intervening as it has been rumored for years to do so via surrogates.
Whatever the case, 150 remains the ultimate bias-setting level
bobby 1:41 / tol game these frothy puppies is replete with risk
–
to mitigate risk to your wallet u d have to be a “whale” with tons of margin (haha) or collusionability with your say 3 selections out of the “7 magnificant”s or … a very intimate insight into money in or out flows
otherwise it is good luck peasant
NVIDIA – Whole planet talks about it….it is Viral…it is Hysterical
Even my wife asking about it ( and she couldn’t give a **** about it ) …my younger daughter asks about it ( at least she is just worried if the price for her next generation graphic card will go up )
Till yesterday it was Gold – half a planet bought it on the top….
Now the other half will buy NVIDIA stocks …on the top
Me….I don’t give a flying ****….EUR goes up, EUR goes down…that makes my day…
US Dollar Index Weekly Chart
Barring a burst higher, the US Dollar Index looks set for the first down week for the year (and in 8 weeks) although trading well off yesterday’s low.
By itself, this does not mean the dollar is about to reverse but does suggest the dollar has lost some steam.
in any case, those who follow me know I am always on the lookout for patterns and here is one that appears will be broken.
hear ye hear ye peasant
—
Bloomberg.com
Fed’s Harker Cautions Against Cutting Interest Rates Too Soon
Federal Reserve Bank of Philadelphia President Patrick Harker said that it will likely be appropriate to cut interest rates this year,…
Federal Reserve Bank of Philadelphia
Economic Outlook: We Are in the Final Mile of the Marathon
Good afternoon! It is a pleasure to be back with you once again, and I thank today’s organizers and sponsors for making it all possible.
MarketWatch
Fed’s Harker: Don’t look for any interest-rate cuts ‘right now and right away’
The Federal Reserve is getting close to cutting interest rates but a move in the near-term is unlikely, said Philadelphia Fed President…
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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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