How to spot Trends and their Reversals
EURUSD on daily chart is clearly in an uptrend as we see it still trading within its ASCENDING CHANNEL. However we do see reversal signals.
EURUSD H1
Is this considered a double bottom (as H1 candles failed to close below 1.3560 support) or successful new trend low at 1.3550
GBPUSD H1
Bad sign for current GBPUSD uptrend on HI as we see the formation of double top on 1.6470, with big drop on last candle
OIL FEB Approaching previous downtrend low 92.00, good opportunity to buy at such a strong support with stop-loss a bit below that level?
Good economic news comes out from the US
This should theoretically cause a rise in the dollar(good for the economy good for the currency), but the dollar is usually used as a safe haven, so when good economic news comes out investors feel optimistic and want risky assets with better returns than the dollar, so they sell it and buy other stuff, so it goes down.
So the lesson is good US economic data has an UP and DOWN effect on the dollar. Go figure
The Bank of England and the European Central Bank are both expected to keep monetary policy on hold Thursday. What ECB President Mario Draghi says about low inflation could signal whether the bank expands stimulus at future meetings and move the euro
The Fed in December said it would begin reducing its monetary stimulus, cutting bond purchases to $75 billion in January from $85 billion. The Fed’s bond purchases had been understood to weigh on the dollar.
Oil prices have failed to receive support from the six consecutive weekly declines in crude stocks, as “the larger-than-expected build in gasoline and distillate inventories” also prompted some selling
