Forex chart patterns are special formations based on the currencies’ price movements. A chart pattern is formed by common lines or points through which lows, highs and closing prices may be connected.
The bellow mentioned chart patterns enter in the group of most popular chart patterns which occur regularly and simplify the trade.
Descending Triangle: Descending Triangle is a bearish pattern which is formed by the convergence of an upper trend. The latter in its turn is formed by lower highs and a lower horizontal trend line formed by the lows of the candlesticks. It is also important to stress that besides the descending triangle there exist symmetrical and ascending triangles too which have their own with formation and interpretation.
Convenience is at the first place as if a trader is pleased with the given platform he will be easily addicted to it and become fully engaged in trade.
Currently NetTradeX is the terminal which has gained highest levels due to its simplicity and reliability. During a very short period of time it managed to be accepted and used by a great number of traders.
Traders think over all the ways and methods of beneficial trade, they try out different techniques, develop trading strategies in order to reach success.
It’s sometimes even ambiguous for many traders as everyone strives to make a profit at high speed. The profit sometimes may come quite quickly, however mostly it takes time and patience.
The euro held a two-day decrease against the dollar before data this week that analysts said will show the 17-nation currency bloc’s economy contracted for a sixth consecutive quarter in the three months through March.
The shared currency was little changed after rising to the highest level in more than three years versus the yen before euro-area finance ministers meet in Brussels today.
Earlier today the Australian dollar against the US dollar increased from near lows around 1.0154 towards upside boundary at 1.0252, and we will interestingly watch further upside attempts are predicted because the trend is negative.
Aussie strength was generated by less than expected Unemployment rate in April, reported at 5.5% while market participants estimated 5.6%, also was lower than March rate at 5.6%.
The usual ratio of exchange market leverage is 100:1. In this case in order to buy for example $10,000, you have to pay $100 to start the trade, as you effectively borrow the remaining $9,900.
Even the most trivial movements in the value of a currency can become a reason of incredible gains and unpleasant losses.
A lot of successful traders consider technical analysis the most important tool for examining the market.
Technical analysis is focused on the study of past, and Forex prices.
A lot of analysts expect bullion to drop next week, with nine bullish and four neutral, the biggest proportion of bears since February 2010.
Investors sold 174 metric tons through ETPs last month, and $17.9 billion of value was wiped out according to the data compiled by Bloomberg.
Also the FED committee decided to leave monetary policy unchanged with key interest rate at record low between 0.0%-0.25% and will continue purchasing fixed income securities at $85 bln per month.
The US dollar index dropped to a more than 2-month low at 81.30, maintaining its downtrend style. In addition the ADP employment change excluding farming sector increased by 119K in April.
Chicago PMI reported below 50, at 49.0 indicating contraction in April while the figure was expected at 52.5, increasing selling pressure on the US dollar.
Europe is on holiday today and the currency pair would most likely remain in 1.3185/1.3147 tight range, ahead of ECB meeting tomorrow and expected rate cut.