Australian dollar trading RBA interest Rate Decison l Bullish outlook

Austalian dollar trading waiting for Bank official to meet and decide the future of Australian Economy, its GDP forecast, bank repo rate, lending rate and deposit rate and it is this is one of the major release that Australian dollar react to. After Friday bull rally, price action in all the Aussie pairs is waiting for banks to hold the cash and lending rate to the record low and maintain a dovish outlook overall as there is some signs of global recovery has been seen in China and other global trading partners.

Technical Analysis of all the Aussie Crosses

As I mention in my previous article, you must be aware of all the recent moves and collect those pieces to be able to know the future reaction of price and it will help you decide when to enter with lower risk and get the maximum reward and remain in trade for longer periods to make full use of risk reward and make profit upto the maximum or close to maximum potential.

Aud/jpy found support just below the previous low

Price Found support around 78.00 just below the previous low and faking out the previous swing low and faking out the strong demand or confluence level of the previous rally which makes a new high, I would like to remain in trade and watch for the next mention target and it is breached i would look for the new high just above the previous swing high.

Australian dollar outlook bullish ahead of RBA rate decision

Outlook is positive for more gains and outlook is still quite bullish But adjusting of large orders can be seen and rally towards the low of 0.7298 cannot be ruled out and from there we can see rally continue towards 0.7450-80 area, which is good area to take profits and put stops under 0.7250 would offer good risk reward potential

Pair Australian Dollar Aud/usd
Entry buy stop at 0.7300
Stops @0.7240
First TG is today high around 0.7380
Second Target is 0.7460
Risk Reward 1/3.
Risk--High
Two things that favors our entry and one of them is we are not entering at market levels and so in bullish market we have to play the waiting game and look for potential large orders for the rally to catch enough sell orders and our stops are placed such as to give trade some room to breathe after the market settles down and second risk is not on as we have not seen big rallies up or down in world indices, so play safe is always recommended and entry and exit level rules are very strict.

Forex Technical Analysis l How to read a currency Chart

Forex Technical Analysis is complete art in itself and You don't need to be Rocket scientist to read a Currency chart and Your technical knowledge will remain incomplete if you don't know Who hold the strong side on the chart and who is more likely to gain control in future. That market is most sentiment oriented which can turn its hands any time and it would take a session or two for a strong bull or bear trend will completely reverse, so it means you have to be cautious and can take all the time you need to access and implement what you learn in all those months or even years you spend

Forex Technical trading is all about who holds the edge, and if you want to compete with the best in the business, you need to be well versed with all the tools and need to stay ahead of the market

Chart reading or knowledge of complete Price Action is must and your decision making should be based only on levels and time spend near those levels which makes those levels even stronger when they are visit. Market always use to behave near those strong levels even for some spikes, which can be the result of consumed orders or strong pinbars which tell us the strength of the level again.

Step to step Technical Analysis

Chart above Canadian dollar/japanese yen without any explanation will put you in complete disarray what is happening but If I put some text on the same chart the you will have some idea why it is important to read every chart and understands what it is trying to tell and then plan your trading activity. Technical analysis should be easy to read and should only be based on price and its complete supply and demand structure, and time put behind such knowledge always give you an edge above others who use indicators, trendlines, fibo and Chart patterns like Head & shoulders, cup and handle etc.

Also read:--- How I manage to pick bottom in S&P--S&P Technical Analysis

Forex Technical Analysis--Step by Step Chart Reading

Above Chart tells the different story altogether,because every move is cleared in this chart and if you find such decisions been made on the chart the Forex Technical Analysis is logical otherwise they are just support and resistance areas which would surely be one or other way of failure.

If you see the above chart we have supply from where price fell a fair way away and then it found demand and compressed(cp) to supply faking it out and then this CP broke into demand and again faking it out and then rally to new highs which was another fakeout and price fall again.

While price fall of that new high it ignore the demand on its way down,creating new supply and price again found new demand and that first visit to supply (ignore demand become supply)was rejected and price then compressed to newly formed demand faking it out and went quickly for the second visit to supply and when it again went to the demand level which was consumed it just give false pinbar which tells that there was spike due to unfilled order and that unfilled orders now got consumed and price is ready to fall to the next demand level or decision making.

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U.S Dollar Index Future l Forex Technical Outlook

Previously:- Dollar Index Future Long Term View

U.S Dollar Index broader outlook, which would cover major currencies like Pound, Euro,Usd/Cad and Usd/jpy

Gbp/usd Intraday Bias of Gbp/usd remains neutral to bearish as today's price seems strong enough for the bias to turn short term bearish and I am watching for a breach of 1.4450 support for a move towards 1.4331.

Speaking of direction in Gbp/usd, which is in strong downtrend on weekly and monthly time-frames but seems to recover well on daily and shorter time frames, but It could turnout to be a small correction of higher time frames.

As I have mention in the chart that price has Fakeout previous two highs and went straight in to supply and that high prove to be vital to cap the bull rally (which seems to be strong enough) as there was a serious buyers trap just above the previous high and today's price action has covered all the buy stops and that minor rally to 1.4650 turned out to be the biggest of buyer's trap pound has offer just recently. I have witness such Price Action in Pound in recent months and those trap rallies really pick momentum going into big impact release like ECB policy decision, as Further stimulus package announce by Mr. Draghi can really put panic in usd bears, so strong rallies can be seen by U.S dollar bulls .

Previously Reason of recent Gold Futures Prices short ralliy

Technical Outlook For the Pound

I will cover the outlook of the Major currencies covered under U.S Dollar Index for the Month of June 2016. Direction outlook for the pound has turned bearish again but I need further Confirmation of the trend as I am still waiting for the lows of 1.4450 to be breached for a move towards possible 1.4045.

You can expect choppy or sideways Price Action for couple of sessions, but still my sell order would remain intact till the weekend and we have still three more days till the market close on Friday and have enough room for the order to click and If things goes right we can surely sees one or couple of the Target get achieved, bearing in mind the volatility to pick up due to high impact release to be scheduled during weekend.

Gbp/usd pending sell stop @1.4450 stops 1.4510
Tg First 1.4310
Tg second 1.4215
Tg Third 1.4090

Eur/USD outlook for the short to medium term is neutral to bearish as We have seen the pair has rejected once again from the highs and has not stopped yet and I would wait and watch If price tests the 1.1060 area in the coming days .

Speaking of direction of Eur/usd, Pair has compressed to the top and recent rejection from the overall supply look strong but recent support around 1.1050-90 area, seems to be holding the pair for too long, but it is understood when High impact release like ECB policy decision is scheduled to be released on Thursday, and Market wanted the view of Mr. Draghi if he is dovish about more stimulus and Gdp forecast for the remaining of the year, would certainly move the pair and there won't be any choppiness for sure.

How to use Open Interest beyond swings on Chart

I prepare this video specially for the newbies and this video is must to watch and part of our Forex Trading Course For beginners, and covers how to use open interest beyond the ultimate swings specially when strong trend reverses immediately.

Recent Rise in U.S Dollar Index and fall in Silver Prices are quite similar to the video mentioned below which has cover most part of my trading techniques, which I used over the years and have edge over other fellow traders.
If I got enough requests then I would post my recent trade of Silver Futures, which I use in the following recommended manner and short Silver Future around 17.75 and my target is 15.60 area.

Trade Watch Pair Gbp/usd

Trade Update Stop out at break even Price went in favor for around 70 pips, but rally strongly after NFP released.

U.S Dollar Index-- DXY long Term View

The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,and it is the most traded currency against all other currencies because USDX is also termed as International Currency and often used as reserves by countries

Usd Dollar Index Weighted Value against other Major Currencies

It is a weighted geometric mean of the dollar's value relative to other select currencies:
*Euro (EUR), 57.6% weight
*Japanese yen (JPY) 13.6% weight
*Pound sterling (GBP), 11.9% weight
*Canadian dollar (CAD), 9.1% weight
*Swedish krona (SEK), 4.2% weight
*Swiss franc (CHF) 3.6% weight

U.S Dollar Index is made up of 6 Currencies, (eventually 24 because 19 of the European Countries who have adopted Euro as their common currency) plus the other major countries like Japan, Sweden, Switzerland and Great Britain and their common currencies.

As mentioned in the above Example with the 19 countries, euro has make up a big chunk of U.S Dollar Index(57.6%), and the next is Japanese yen which is not a big surprise as Japan (13.6%)is also one of the biggest Economies of the world and rest 30% weight of U.S Dollar Index is shared by other four.

One thing that we must kept in mind that you don't need extra skills to trade U.S Dollar Index as You just need to look at sentiment, swings and opportunity to time your trade and If you are having problem accessing situations then U.S Dollar Index can surely give you idea about the direction and things to come and hence you can avoid choppy Market situations. U.S Dollar Index is directly related with U.S GDP and long term bank policy decisions.

Federation Chairman Mr. Ben Bernanke, Apply Quantitative easing or extended stimulus after 2008 Market Crash, For Few years and hence it really stem the U.S Dollar again its counterpart to strengthen economy and print money to put that money in to economy and offer employment opportunities and stimulus package to buy back negative yield bonds and hence strengthening banks and provide them more liquidity or funds to run bank system smoothly.

There are also some interesting facts that when Euro moves, which really moves US dollar index because Euro covers the most portion of USDX, and because USDX is so heavily influenced by the euro, traders have looked to trade Euro as the highest portion of the Currency Volume throughout globally.

How we can use US Index In Trading Currencies

I hope you have got the slightest Idea, "How you can use US Index in your trading?"

If not, you will soon get an idea, as we all know that most of the widely traded currency pairs include the U.S Dollar. IF you still wandering then U.S Dollar based Currencies are Eur/Usd, Gbp/Usd, Usd/jpy, Usd/Chf and Aud/Usd, Usd/Cad

Well, hold your trigger finger and you’ll soon find out! We all know that most of the widely traded currency pairs include the U.S. dollar. If you don’t know, some that include the U.S. dollar are EUR/USD, GBP/USD, USD/CHF, USD/JPY, and USD/CAD.

So, In broader terms If you trade any of these pairs, the U.S index move and if you dont, the US Index will still give you an idea of how weak or strong the U.S Index around the world. In fact, when the market sentiment of U.S dollar is unclear, U.S Index provides you better picture.

As we all know US Index comprised of more than 50% of weighted value of Euro, Euro/Usd chart can be exactly inverse of U.S Dollar Index.

Technical Analyze of USD/jpy

U.S dollar is on the Radar Since there have been talks of Fed Rate Hike and it has picked up since the first rate hike in the last December and hence I always recommend staying long instead of just waiting for things to happen or most of the moves have been finished when the action is performed.

US dollar future to dominate pound exchange rate in coming futureI would like prices of pound sterling to remain in long bearish mode and it could even turn out to be best run of Us dollar future against single currency of U.K. also referred as british pound.

US dollar update 4th October 2016.

US dollar bulls very cautious ahead of NFP data I have seen lot of bull rallies of US dollar fake about the recent range and I would like to see this failure again and would look to see the reaction at the low of range again.

Trading Gold Futures Contracts

What does Gold Futures contract means

Gold Future contract is a legally binding agreement for delivery of gold in the future at a agree-upon price. These type of Gold Futures contracts are standardized by Gold Futures exchange as to quantity, quality, time and place of delivery i.e physical delivery will be with the difference between the Gold Future price at the time of contract and actual price at the time of delivery.

Market Participants facilitate trading without Physical delivery of Gold Futures

Market participants or hedgers use these type of contracts as a way to manage their purchase or sale of physical with providing speculators or investors with an opportunity to participate in the markets and trade Gold Futures without any physical backing, but only with agreed upon the price with a difference of opening and closing of a trade of Gold Futures.

Why Gold Futures or any Other Precious Metals Futures

There are few aspects that need to be cover and one of them is that Precious metals Gold Futures or Silver Futures are traded over centralized exchanges and because of the centralized exchanges, Gold or silver futures offers more financial leverage, flexibility and financial integrity than trading Gold Futures with the contracts. Let me emphasis on the point more that Financial leverage is the ability to trade and manage the high market value product like Gold Futures with a fraction of total value. Trading Futures contracts is done with performance margin. It requires considerably less capital that the physical market and because there is high leverage used in Currency Market and it provides speculators a higher risk/high return investment.

Bias of Gold Futures Remains on the downside-Technical outlook for the week May30-June3

Weekly outlook for Gold Futures as We can expect bit of choppy sessions in this week due to two huge release scheduled at the weekend and i.e ECB policy decisions and NFP data. We can see risk falling through if there is any unexpected policy decisions being made by ECB bank officials and followed by Big change in participation rate in coming event of NFP data which is scheduled to released this Friday and the last NFP report before then next FED meet scheduled to release later this month. Any change in Unemployment rate up or down would certainly put risk at glance and drive Gold Future prices with volatility.

:: sell Gold Futures @1212 with stops around 1229.
::First Target 1200
::Second Target 1182

I always advice setting two pending orders and expiry is 48 hours. Close one order around 1200 and trail the rest around 1216 with risking 16 points to make another 16

Trade watch Gold Futures

After First Target was reached and profits were booked, waiting for the second target and stop out at break even of the second lot.