Blog – Page 72 – The Plot

April 6
2015

Dollar’s Weakness Extends into New Week

The dollar was seriously hurt on Friday by lackluster nonfarm payrolls, and the currency retained its weakness at the beginning of the new week. EUR/USD rose today even though reports about the US services sectors were mostly positive. The gains were limited as trading volumes are still light. Most markets outside of the United States are closed after the Easter holiday. Markit services PMI rose from 57.1 in February to 59.2 in March. […]

April 4
2015

Weekly Forex Technical Analysis (Apr 6 — Apr 10)

EUR/USD Floor pivot points 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res 1.0464 1.0588 1.0778 1.0902 1.1092 1.1216 1.1406 Woodie’s pivot points 2nd Sup 1st Sup Pivot 1st Res 2nd Res 1.0605 1.0811 1.0919 1.1125 1.1232 Camarilla pivot points 4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd […]

April 4
2015

Forex Brokers Update — April 4th, 2015

One more week with three new companies listed: NewForex — a Russian MT4 broker with up to 1:1000 leverage in Forex trading. The account can be opened with as little as $1. NewForex Forex.ee — an unregulated Estonian company with ECN and STP accounts. The only trading platform is MetaTrader 4, while the minimum account is $100. Leverage is maxed out at 1:500 for Forex instruments. Forex.ee Trust Capital — […]

April 3
2015

Dollar Receives Hit from Nonfarm Payrolls

The dollar received a serious hit from nonfarm payrolls that missed analysts’ estimates by a wide margin. This led to big losses for the greenback despite today’s thin trading. Nonfarm payrolls rose 126k in March. The rate of growth was almost two times slower than the forecast 246k. On top of that, the previous month’s increase was revised from 295k to 264k. Unemployment rate stayed at 5.5 percent as was expected. Average […]

April 2
2015

Dollar Doesn’t Feel Support from Fundamentals

The dollar remained in a bearish mode today even though macroeconomic reports from the United States were really good, unlike yesterday. EUR/USD managed to erase all of its weekly losses after today’s rally. Tomorrow’s session will be extremely important for the fate of the dollar due to the release of nonfarm payrolls. The problem for traders is that many markets will be closed for Good Friday, meaning that the reaction for the NFP will […]

April 1
2015

FOMC Launches Revolutionary Interest Rate Setting Mechanism

While all the progressive Forex trading community was trying to guesstimate the date of the next interest rate increase by the Fed, the FOMC Chairwoman acted in unexpected manner. Yesterday, in her late night speech, Janet Yellen has announced an innovative mechanism of fed funds rate fixing. Its primary objective is to eliminate the traditional lack of consensus when the rate vote is performed during the Federal Open Markets Committee meetings and to exclude […]

April 1
2015

Dollar Loses Upward Momentum amid Soft US Data

The dollar’s rally lost momentum on Wednesday as economic data from the United States was disappointing for the most part. It allowed EUR/USD to carve out gains even as the eurozone had its own share of problems. ADP employment grew by 189k in March on a seasonally adjusted basis. The increase was markedly below the predicted 227k the February’s increase by 214k. (Event A on the chart.) Markit manufacturing PMI rose from 55.1 to 55.7 in March. The median […]

March 31
2015

Decline of EUR/USD Accelerates

EUR/USD accelerated its decline today following yesterday’s losses. The dollar continued to receive support from the US economic data while the euro was under pressure as Greece failed to reach an agreement with its European creditors. The currency pair attempted to bounce intraday but so far the attempt was a failure. Year-on-year, S&P/Case-Shiller home price index rose 4.6% in January, matching expectations, after increasing 4.4% in the preceding month. […]

March 30
2015

Dollar Regains Strength as Week Starts

The US dollar was struggling to gain ground on Friday following the initial losses and had a limited success. The US currency had to wait for Monday to really regain its strength. The greenback gained on the euro during the current trading session but has trouble to follow through with its rally. EUR/USD is consolidating right now even though the recent US economic data was favorable to the dollar. Personal income increased 0.4% […]

March 30
2015

Will Fed Raise Interest Rates in 2015?

This post’s titular question is probably the most important one for the long-term FX traders, or at least for those who trade USD pairs. Looking at my last attempt to outsource the prediction of the future interest rate increase by the Federal Reserve, I realize that it does not look very good. The vast majority of blog’s readers (56%) expected the rates to go up in 2014 and only 11% of voters chose 2015 as the year of the first lift. […]