The Ichimoku Kinko Hyo is a versatile technical indicator that is commonly used to gauge future price momentum and direction, along with future areas of support and resistance. This indicator is most commonly used on JPY (Japanese Yen) currency pairs. In Japanese, “ichimoku” translates to “one look,” or “glance” , “kinko” means “equilibrium” or” balance” … Read more
WHAT MOVED THE MARKET US Federal Reserve Interest Rate Why is the US – Federal Reserve Interest Rate so important? The US Federal Reserve chose to keep rates steady at 2.5%, however indicated a rate cut could occur in the not too distant future. Jerome Powell commented on the slowing wage increases coupled with growing … Read more
Definition of Average Directional Index (ADX) Traders use the average directional index (ADX) as a technical analysis indicator to determine the strength of a trend. The trend can be up or down, which can be represented by two accompanying indicators, known as the Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI) respectively. The … Read more
First and foremost, the bond yield curve has a close relationship with the term structure of interest rates, to be more specific, the yield curve in some sense indicates how interest rates vary over investment horizons. Additionally, it can also be a useful tool for interpreting the market expectation of interest rate. In terms of … Read more
Market Movers US – Mexico Trade Deal Why is the US – Mexico Trade Deal so important? Trump has reached a deal with Mexico and agreed to abolish the 5% tariffs on all Mexico goods coming into the US. This agreement is a significant milestone and has prevented the US-Mexico- Canada agreement from deteriorating further. Currently, USA … Read more
Support and resistance are the most commonly used tool when undergoing technical analysis. Support levels and resistance levels are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction. Support Support is a price level where … Read more
What are the Bulls and Bears in Forex? Often traders characterise trends as bullish or bearish, although there isn’t much correlation between the two. The term bullish represents an upward trend, while bearish represents a downward trend. These jargons are often used in technical commentaries, phrases like bullish sentiment, bearish reversal, allows ease of communication … Read more
A triangle is a chart pattern formed by drawing trendlines on a converging price range. There are three different types of triangle patterns, ascending, descending and symmetrical. Triangles are very useful to determine continuation/reversal trends. Ascending triangle An ascending triangle is a breakout pattern that forms when the price breaches the upper horizontal trendline. The upper trendline … Read more
Bollinger bands are a technical analysis indicator with a set of lines plotted two standard deviations above and below the simple moving average (SMA). The band can be changed by adjusting the SMA settings to a different timeframe, the most common setting is the 20 day SMA setting. However, it is important to note that Bollinger Bands should not … Read more
WHAT MOVED THE MARKET RBA Monetary Policy Decision & Domestic Retail Sales Why is the RBA Monetary Policy Decision important? Any changes to interest rate or outlook by the RBA, including dovish or hawkish tone, will impact the value of the AUD. Therefore, rate decisions and the RBA Monetary Policy Statement are vital to gauge how the … Read more