Staying Ahead of the Forex Curve Are you a Forex trader looking to stay ahead of the Forex curve in 2024? Yes! How can we do that? Forex Trends and Developments Firstly, let us focus on several trends and developments that can help. The Forex industry is becoming increasingly technology-driven, with AI-powered trading algorithms, machine learning, and big data analytics. In order to succeed in this environment, you need to be tech-savvy and adaptable. Additionally, another trend to watch is the growing importance of social media and sentiment analysis. Successful traders stay ahead of the Fore ..read more

We started 2024 with a greenback surge after coming under pressure in the second half of 2023. Yet, it’s been a back-and-forth run for traders as they try to digest and predict the Fed (FOMC) decision in the upcoming months. If borrowing costs continue to rise, you can expect the USD index to test last year’s highs and continue. In early December, we saw intense USD selling pressure as traders digested lower inflationary data. This in turn supported the easing of interest rates in 2024. Conversely, these expectations have moderated the last few weeks as the inflationary data does not look as ..read more

The Ups and Downs of the Greenback Pendulum The Greenback pendulum swings again. Against all the other majors and commodity pairs, the US Dollar index surged at a meteoric pace, and in August 2022, it looked like there was no end in sight to the rise of the USD. But then things turned around, and after a rough three months, from late 2022 until mid-January this year, the Greenback looked to be reversing much of the historically high levels achieved during 2022.  What happened? What’s Changed? In late 2022, inflation showed signs of easing due to the most aggressive interest rate rise seen ..read more

Which Is The Best Trading Method? Breakouts, Continuations, or Reversals? What is the best trading method? I’ve seen many traders ask this question over the past 25 years of working with Forex traders across the globe. Our answer is always the same; all three strategies can be the best trading method at one time or another! Each method has its place and time; it always depends on the prevailing market circumstances. I know this may sound a little confusing; however, it’s simpler than you think.  Reversal Trade There are times when the markets are oversold or overbought. That particular mo ..read more

This last week we saw some significant reversal activity in the Forex market. For weeks, the USD had pounded (no pun intended) on most majors with no end in sight. The question on everyone’s mind: Can the USD reversal momentum continue, or is it just a knee bend before the next upward spike? Consider The Technicals Technically speaking, the charts are giving us some clear indications. But, unfortunately, it’s as clear as mud. On the one hand, it’s been vastly overbought these past few weeks, and yet, depending on your chart time, we haven’t gotten close to our first Fibonacci retracement ..read more

Volatility Ahead! We firmly believe every trading market has a season of lean and abundant periods of opportunity. However, not since the GFC (Global Financial Crash) have we witnessed such activity and increased trading opportunity as volatility continues to soar in the Forex markets.  Added volatility opens up lots of possibilities. Speculators and traders are sensing it, and market participation is surging. It is a known fact that in times of high volatility, the options of profit are high, but as a word of caution, so is the RISK! One must always weigh the Risk / Reward scenario under ..read more

Where Are the Retail Forex Traders Actually Trading If you are a retail Forex trader, you will be astonished to know that retail Forex traders are not trading on the “real foreign exchange market.”  Sounds awkward? Now you may have another question that is then “where are retail traders trading?” Where Are The Retail Traders Trading? As a retail trader, you open an account with any broker and then buy or sell currency pairs according to your analysis. If so, then where are your orders executed? You don’t have access to the giant Forex market as a retail trader. Instead, you only ..read more

EUR/USD Approaches Parity: 20-Year Low This past week we witnessed the Euro at a 20-year low, briefly falling slightly below parity with the USD. However, this was short-lived as Forex traders bought the Euro across the globe for what looked like a bargain price. In addition, short Euro traders were also covering their positions, representing the more significant portion of the strong buying surge shortly after breaching parity. The one-to-one “Big Figure” is not only a historical level but a significant psychological barrier. Human conditioning has taught us to round everything off with the 0 ..read more

In anticipation of last Friday’s NFP announcement (Non-Farm Payroll), many traders were sidelined for most of the week. Many were holding back just in case of a surprise of another whipsaw like we experienced last month. The NFP Announcement Outcome  It was a damp squib, not much reaction, and volatility was almost nonexistent. The total of anticipated new jobs for May was missed by a few thousand. A run-up in the futures market ahead of the open was reversed, ending in the negative column for the Dow Jones, S& P, and Nasdaq. Unfortunately, it seems there was nothing dramatic enough ..read more

Will Forex volatility continue – this is the question many traders ask these days. But, over the past 24 years, when we first started providing Forex services, one thing has always been consistent: Forex volatility swings. Forex Volatility Swings Experienced Forex traders are well aware of the Forex volatility swings up and down the Forex market provides during major economic announcements and significant world news events.  Typically these announcements and developments have a relatively short life cycle – granted, they may set up a new trend direction. Still, this is often short-lived ..read more