Midnight Uncertainty

An algo trade caused the Euro to spike against its rivals in the early midnight European hours. The single curreny rose to 1.0652 against the dollar due to a trade that was designed to take advantage of the low liquidity in the markets at that time. 

As a result, the most effect was felt in Gold as safe haven which climbed to a high of $1,163, USD/CHF went below 1.0050 and Silver went to 16.25.

This is the second time an algo trade has caught investors by surprise, the first time being the Sterling flash crash on 7 Oct when the Pound dived 6.1% against the dollar.

This time it was a bit lighter, however, traders were hurt as their stops were taken out during the unexpected move. 

It is yet to be investigated what exactly is behind that trade, presumably the reason is a computer generated order causing a reverse flash crash.

USD/CHF Lower Today

USD/CHF is trading lower after a few days of consolidation at its highest point above 1.0300. The pair reached a high of 1.0344 and immediately retreated to lower levels but still managed to hold above key 1.0300 level. A few days passed and price was struggling to keep the momentum.

A few times the US dollar gave in to bullish pressure going below 1.0300 but then again got back up above and has entered into consolidation that continues up to now. Main trend on the long-term remains bullish but with the decent sideways trading we might expect to reach below 1.0230.

If that happens, next bear target would be to go below 1.0100 and then parity again. On the other hand, bulls are on standby awaiting January when President-elect will be officially sworn as President of the United States. Given his powerful administration, market participants have high hopes for the future of the US equities and currency and these expectations may provide the next boost in the US dollar against its counterparts.

Chart: USD/CHF D1

USD/CAD Higher

USD/CAD is having one last big move before the year ends in a few days. In the last trading days of 2016, USD/CAD registers a move to the upsde with prices going above 1.3550. Today, the pair is trading at its highest since the beginning of the bullish move on Dec 14. The price then was 1.3080 and had just met the long-term support.

Bulls did not miss the chance to go in and back the US dollar against its counterparty. Since then, the pair has made good progress going as high as 1.3580, which is seen as immediate resistance and also a double top.

If price goes above current levels, we might see a continuation of the upward move in early 2017. On the other hand, in the past few days we are seeing a timid and somehow protective US dollar, which might spread to the USD/CAD trading also. In that case, price could retreat to lower levels with first target at 1.3350.

Chart: USD/CAD D1

USD/JPY Post-Christmas Trade

USD/JPY has been consolidating around its highest levels since Christmas. The pair registered a high of 118.70 on Dec 15 and has been trading around that level eversince. Low volatility and low liquidity were to be expected after Christmas as market participants are away and no major news are expected to stir the market.

Traders and investors are taking a few days off to be with their families all around the world as business is put on hold. At least for a while before we start anew on Jan 1. Until then, the market is expected to trade flat with a calm US dollar.

USD/JPY can be expected to trade around 117.00-118.05 until volatility is back on stage and market is ready to take it to another level. Current market price is 117.28 in this post-Christmas calm Tuesday.

Chart: USD/JPY H4

EUR/USD Higher

EUR/USD is trading a bit higher in today's session going up to 1.0467 and is currently at 1.0461. The pair registered a good move to the upside last week when it traded at a low of 1.0351 and reached a high of 1.0498. Since then, the euro has been struggling to keep the momentum and has reached the resistance zone twice at current market price.

Euro bulls need to close above 1.0480 if they want to continue their rally towards the 1.05 goal. Short-term resistance can be expected at 1.06 while major resistance lies at 1.0870. On the other hand, dollar bulls have the advantage over the pair as they have a strong downwards momentum that might only be halted temporarily before continuing to parity.

A lof of experts and analysists predict parity in early 2017 which is the reason for other markets, such as Gold, to depreciate as market investors are pumping fresh money to back the US dollar in its historical rally.

Chart: EUR/USD H4

Pivot Point Indicator

As you probably know, some of the best traders on earth use indicators. They're valuable for their ability to show current market direction and overall market sentiment. An indicator that can be and should be implemented into a successful strategy is the Pivot Point Indicator.

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USD/JPY On Hold

USD/JPY's latest and awesome rally appears to have come to a hold as price lost steam once it reached just slightly below 119.00. The pair reacted dovishly when it went as high as 118.65 and has been consolidating around that level eversince. 

Main trend on the long-term remains strongly bullish, but the effect by the Trump wave seems to have worn off and now if USD bulls want to continue their marching North they would need something strong othwerise bears have the advantage caused by low liquidity and weak bull support. 

Expectations are that USD/JPY will continue trading in the range between 116-something to 118 until years end as market participants are away to spend time with families taking the volatility with them. 

However, we still have some important news such as Consumer Confidence and Advance Retail Sales scheduled for next week that may cause unexpected rapid moves to either side.

Chart: USD/JPY D1

USD/CHF Double Top

In the week before Christmas despite all the prior volatility and uncertainty in markets there is still some good old pattern following movements. Markets are now calmer and contained as we head into 2017. USD/CHF made a high 1.0340 on 15 Dec and since then it's been trading around the 1.0300 level. That level is seen as a second top which comes less than a month after the first top made on 27 Nov.

USD/CHF is now trading at 1.0277 indicating that the resistance zone is acting strongly and preventing bulls from going above 1.0350. If that level holds we might see a move to the downside to a probable first target of 1.0000, or in other words - parity.

On the other hand, given how strong the US economy is right now and how optimistic the outlook is, bulls can very easily take out the resistance and go well above 1.0350.

No matter which one it might be, market participants usually are very quite in the last week of the year so low volatility can be expected.

Chart: USD/CHF D1

AUD/NZD Consolidation Continues

It has been a rough year for both the Australian and the New Zealand dollar. The pair made a low in September at 1.0230 which acted as a support zone, confirming the prior support levels at 1.0022 and 1.0042. After that recent low the Australian dollar started to appreciate against its counterpart going as high as 1.0763.

That level, however, was met with disapproval from the bear camp and they used the resistance created by the 200SMA to bring the price down to lower levels. Since then, the pair has been in consolidation forming a coil with very volatile and uncertain moves to both sides.

Currently, the pair is trading at 1.04640 and, as it appears, it might try to revisit the support level this time slightly below 1.0300. If we see a dip below that line, bears can take control over it and bring it even further below 1.0100.

On the other hand, if we can break above the 200SMA then bulls will have the upper hand.

Chart: AUD/NZD D1

USD/CAD Lower in Opening Hours

USD/CAD is trading lower in the first hours of the opening session today as market participants are cautious and careful in the week before Christmas. US dollar bulls are withdrawing a bit as the US currency is seen to decline against its competitors.

USD/CAD traded at 1.3418 last week and went slightly below 1.34, currently 1.3383. Main trend on the short-term remains bullish but on the long-term we can observe how narrow of a path the pair has chosen to go. Since May USD/CAD has been trading in the range between 1.27 and 1.34. Last week the USD made a low of 1.3080 against the CAD and that acted as a support, moreover the pair got assisted by the 200SMA.

What follows next might very well be a consolidation until years end as we have no major news or events that can inject new volatility. Traders and investors might take this time to get off the markets and spend time with their families in the warmest holiday of the year.

Chart: USD/CAD D1

Gold Sells Off as Dollar Surges

As we head into years end markets become more and more uncertain due to increased volatility and unexpected price changes. The interest rate yesterday acted as a catalyst to a new wave of dollar rally and that resulted in a sell off in the Gold market. 

The precious metal went from $1,165 to $1,138 on the day of the raise and continued to depreciate the next day going as low as $1,122. Currently, Gold is slightly recovered and is trading around $1,133. This, however, might only be a reflex from the sharp sell off and price still has a good chance to continue South to a probable first target level at $1,100. 

It wouldn't be surprising if bears try to reach that psychological $1,100 before the year ends as this looks a realistic goal for we have seen what Gold did in the second half of the year. 

In January this year Gold was at a low at $1,046, then went up almost 40% to a high of $1,375. Now Gold has lost almost every gain made throughout the year leaving all Gold bugs devastated. 

The economic outlook for the US economy is very optimistic and that might reflect on the price of Gold in the near future and Gold bulls might not like it.

Chart: XAU/USD H4

FED Raises Rates For The Second Time in a Decade

The FED decision was a unanimous "Yes" on a rate hike with 0.25 basis points. The notion, according to FED Chair Janet Yellen was that the economy has made considerable progress towards maximum employment and price stability. Over the past year, the US economy has produced 2.5 million net new jobs and inflation is moving towards the 2% goal.

What's even more interesting is that they said they are looking to raise rates three more times next year. The stock market didn't like that and we saw the Trump-induced rally in Dow Jones lose steam. The US dollar was the biggest winner in the event as it surged against all other markets.

EUR/USD fell below 1.05, USD/CAD reached above 1.33, USD/JPY was just a few pips shy of 118.

On the larger scale, President-elect Donald Trump wants to see the economy growing at a 3% to 4% growth rate and he's looking to pursue fiscal policy through tax cuts. Janet Yellen, however, wants to see the economy run a little bit faster and to lower the unemployment a bit more but she doesn't want to see the economy overheat. And if she sees the economy overheating, she's going to raise interest rates more. And that could make FED Chair Janet Yellen a thorn in the side of the new US President Donald Trump.

EUR/USD Awaits Key Meeting

Market participants are now anticipating the latest FOMC Meeting that will decide if the rates go up. It's considered by some that this is a "done deal" and the Interest rate will hike with 0.25 basis points. EUR/USD already is rallying as well as US equities. Yesterday the Dow posted a record breaker when it reached 19,956.

With Dow closing in on 20,000 and the US dollar approaching parity with the Euro many experts now say that the FED does not actually have a choice and it's mandatory to raise rates.

The result will be publicly announced at 2pm eastern time as market players are currently on hold with their trading waiting on the decision.

EUR/USD posted minor gains yesterday as it reached 1.0660 and is now trading at 1.0649. It is expected that price will continue trading in the same range until the news release.

Have in mind that volatility may be high and any exposure to markets poses a risk to your capital. Play it safe today and don't act based on emotions.

Chart: EUR/USD D1

Gold Weak Ahead of Key Meeting

Gold is seeing its worst days since the beginning of the year. The precious metal has found support in February levels around $1,160. Price is now $1,160.57 and it seems that the metal will now consolidate ahead of one of the most important events of the year - the last FOMC meeting for 2016 which will determine whether the interest rate will raise.

Market participants are sure that the FED Chair Janet Yellen will raise rates and they acted on this belief by supporting the US dollar in its latest rally against all competitors. This means that if we really get a raise, as everyone expects, the move down might not even happen as it did with the last interest rate raise - the US dollar did not do anything when the news came out.

The best thing you can do, as advised by all experts, is to not trade the news. This is important in such times as these where the uncertainty globally and locally in the US is the main environment for the market.

Analysts and experts predicted before the last raise that a Yes vote will put an end to all bullish hopes for Gold, but 2016 proved that the opposite actually happened.

Chart: XAU/USD D1

EUR/USD Holding Ground

EUR/USD managed to pull through the bear attack that has been going on for the past days. In November the pair went from 1.13 to a low of 1.05 then in December it climbed to a high close to 1.09 and now is trading at 1.0565.

The bear attack is far from over as this latest correction might be preparation to put the pair even lower - possibly below multi year low below 1.04. If the Interest rate goes up on Wednesday then we might witness a continuation of the sell off move and visit levels below 1.04.

However, it is possible that the move is already over and even if we get a raise we might not see a decline in price as the depreciation already happened.

Whatever the case, Wednesday will be the day where we find out the potential EUR/USD level for the year end.

Chart: EUR/USD D1

Learn From The Pro: Paul Trades The Engulfing Candle | Webinar Review

A lot of traders have difficulties finding the right strategy in trading. This is why it is important to divide any strategy into manageable elements. Thus, traders have control over their overall strategy by breaking it down into pieces.

Such piece is the Engulfing candle. ActivTrades hosted a webinar dedicated to this candle. The speaker, Paul Wallace, talked how to spot an engulfing candle and what to expect when you indeed find one. This little element is very important in trading because it give you an early hint whether the trend may change, stall or continue in the same direction.

In case you missed it, you can find it HERE.

To keep an eye on all webinars visit HERE.

EUR/USD Volatility At High

ECB Tapers bond purchases causing the EUR/USD to implode due to high volatility. That's what the day brought as we were observing the press conference held by Mario Draghi, the ECB President. The meeting turned out to be the major event of the day as it's effects were felt all over the currency markets.

President Draghi stated in his speech that the ECB will continue its easy monetary policy. The Euro was heavily impacted by the announcement driving the pair to a low of 1.0602.

Before the news, the US dollar was weaker than the Euro trading around 1.08. In the eye of the storm the pair reached a high of 1.0872 and then nosedived for the last three hours.

Now the EUR/USD is trading at 1.0627, only slightly better than the worst for today. Into the midst of this new cycle of bullishness in the aftermath of the election of Donald Trump as President the US dollar and the US equities are enjoying a series of record breakers. All this causes strong interest by traders and investors thus depreciating other markets and assets.

In this light, the FED is meeting on 13-14 Dec to discuss whether or not to raise rates and as rumor has it, they most likely will.

Chart: EUR/USD H1

Gold Weaker

Gold is having one of its worst performances in years. The precious metal began the year with the most successful percentage increase going almost to 50%. For the second half of the year, however, Gold lost most of its gains due to stronger dollar and overall economic strength in the USA.

Currently, Gold is trading at $1,170 and it looks like the drought is bound to continue as we head into December and approaching the rate decision in the middle of the month.

According to experts in the field, Gold will gravitate towards $1,200 with a possible low of $1,000 if the US economy continues to over perform in the same direction.

Gold reached a high of $1,375 mid-year and has been depreciating since then. Latest low was made yesterday when price reached $1,157. In order for the trend to turn we need strong fundamentals against the US dollar and that, in the current situation, is highly unlikely.

Chart: XAU/USD D1

EUR/JPY Higher

EUR/JPY has been in an uptrend since it reached a bottom at 112.59 in the end of October. The pair has been supported by the weakening Japanese Yen and most lately by the happening in the Eurozone. Although the Italian referendum did not pass and prime minister Matteo Renzi is about to leave the post, the Euro was strengthened against all its counterparts.

The initial reaction of the failed referendum yesterday was to sell the Euro with the idea that the Eurozone is headed into deeper recession. However, what we actually experienced was a reaction similar to the one we saw when Trump won the Presidency.

This is one of the beauties of the market. When people see an opportunity to buy low they do it. Yesterday the EUR/JPY reached a low of 118.70 and is now trading at 122.54 with a high of 123.21.

The situation remains very volatile as markets are anticipating the rate decision on 13-14 Dec. This would be one of the most awaited fundamentals of the year.

Chart: EUR/JPY D1

EUR/USD After The Italian Referendum

The Italian referendum was rejected as close to 60% of voters opt for "no". Italian prime minister Matteo Renzi said he will resign as a result of the failed referendum. In the opening hours of the trading day, the Euro slipped to a fresh 20-month low against the dollar going as low as 1.0505. 

Now the pair has slightly recovered and is trading at 1.0585. The referendum seriously damaged the Euro against its major counterparts and now with these new lows everything can happen. It is a time of great uncertainty on the global scale as governments fail, rulers resign and new order appears. 

Only with time we can know for certain what is good for the global economy as current market environment reacts based on fear and greed which of course is not a true indicator of the real market conditions. 

Until December a lot more is about to happen as the US will most likely raise rates which can boost the dollar even further and we might see parity in the EUR/USD for the first time since 2002.

Chart: EUR/USD H1

USD/CAD Uncertain

USD/CAD is trading lower in today's session marking a third consecutive day of losses. The pair has been one of the most uncertain instruments to trade this year. Although it did have major swings up and down, since the end of January it depreciated with more than 2000 pips, thus becoming one of the top assets to lose its price in 2016.

Apart from that, since bottoming out, USD/CAD has been trading sideways making it very difficult for investors and traders to choose a direction and stick with it simply because there is no trend.

Lately, things haven't been much different. The pair went to a high of 1.3587 on Noe 14 and market multi-month high. After that high, it went as low as 1.3255 in today's session.

Lack of direction is the reason to be cautious when trading this market as price fluctuates to extreme highs and lows day in and day out.

Chart: USD/CAD H4

USD/JPY Aiming Higher

USD/JPY continues its strongly bullish move that started on Election day when Trump won the Presidency. Since then, the pair has been trading sharply to the upside with price going from 101.20 to a high of 114.80. Main trend as of now is bullish as market sentiment shifted from the long-term bearish channel when the price reached a low of 98.97.

If tomorrow the news are for more jobs created and positive NFP data, we can expect further continuation of the bullish move. In light of that, first resistance is seen at current market price, which is also forming a double top at 114.80. If that level is taken out, we can expect price to reach 120.00 and even 121.70 to meet the second resistance.

The US dollar is definitely having the best time this year and it doesn't look like it's about to end with the end of the year. If we get a raise in mid-December and good tidings from President elect Trump the domination of the US dollar is bound to continue in 2017.

Chart: USD/JPY D1

Gold in a Downtrend

Gold is having major difficulties this month as price soared to a high of $1,337 in the beginning of November and now is trading at $1,188 with a low of $1,171. Gold bulls were caught short by the surprising reaction of market participants to Trump's Presidency. The US dollar strengthened to more than 13 year high pushing the safe haven to its February level below $1,200.

This latest move killed all the gains that were made during the year that actually made Gold the best asset to have in your portfolio in 2016. Now all Gold holders are having the worst performance in their indexes and the worst part is we still don't know what to expect until the end of the year.

We have the US rates raise in December, then in January Trump's steps into office and all this will be highly influencing the Gold market. If it turns out to be positive, then we might see Gold revisit the low of $1,049 made in 2015 and possibly go lower.  On the other hand, if Trump and Congress have differences and conflict in their views, then Gold will once again be an asset you want to have in your portfolio.

Chart: XAU/USD D1

EUR/USD Attempts To Go Higher

EUR/USD is caught in a struggle after the latest bottom at 1.0517. Since then the pair has been trying to recover and made two attempts. Although the first turned out unsuccessful, bulls managed to push price to a high of 1.0685. After that, the pair lost some of these gains and went to a low of 1.0565.

Now bulls are taking another chance to go beyond the latest high as price is currently 1.0632 with a high 1.0661. Main trend on the long-term remains bearish but in order for the trend to continue in the same direction, bears need more fundamentals, namely more economic data from the US and of course a raise in rates on 13-14 December.

Until then, price is caught in the range between 1.0660 and 1.0550. What can stir the markets today is the USD Personal Consumption Expenditure Core, and later in the week we have USD ISM Manufacturing and the most important monthly data the US Non-farm Payrolls and Unemployment Rate.

Chart: EUR/USD H4

EUR/USD Slightly Higher

EUR/USD is trading a bit higher in today's early European hours. The pair went as low as 1.0518 last week and has recovered to a high of 1.0685. Current market price is 1.0652 and it appears that the pair has found some support. Finally dollar bulls can take a breather before the next move which will determine where will the price go from here.

On the one hand, the pair is now at a strong support level that goes back until the first quarter of 2015 when the EUR/USD made a record low of 1.0462. Current level could act as a catalyst and boost prices to higher levels as this time has been anticipated by Euro bulls.

On the other hand, Trump's presence in the US future seems to be stronger than the technical level reached as Dollar bulls are having the best time of this year so far. Goldman Sachs also predicts further dollar appreciation in the near future.

Whatever happens, current times are very uncertain and the best trading strategy now is capital preservation.

Chart: EUR/USD W1

ActivTrades Event Follow Up: Tools and Trading Setups | Webinar Review

The Financial Summit hosted by ActivTrades took place on November 19th and was probably the best trading event for the year. A lot of experts and analysts took part to make this a memorable day. What's even more important is the lessons we took home after the event.

In light of this, professional trader Paul Wallace explained in a webinar yesterday how to use the ActivTrades exclusive tools available to clients.

He talked about how we can take advantage of the opportunities presented by the following exclusive tools:

SmartOrder and SmartCalculator, designed to manage risk;

SmartTemplate, SmartForecast, SmartPattern, Pivot Points Indicator designed to show trading signals;

SmartLines designed for automated execution;

All of these tools are very valuable to any type of investor or trader, as they can reduce the level of stress as well as the level of uncertainty.

For those of you who missed the event, it will be uploaded HERE.

To stay up to date with the latest webinars visit HERE.

Gold Sell Off

Gold is having a terrible last quarter of 2016. The precious metal had the best first three months beating all other markets and assets when it rose more than 30%, and close to 40% in the third quarter. Now, the situation does not look so optimistic as Gold has been going the other way since July.

Numerically speaking, Gold rose from $1,047 to $1,284 in first quarter, then stalled for a couple of months and skyrocketed on June 24 when the NFP's and Jobs report returned 50,000 jobs created. This was the decisive factor that pushed price to year high of $1,375.

Since then, bulls have not been able to ignite a spark and Gold has been suffering the consequences. The price is down to $1,181 and is currently trading at $1,186. The main factor now is Trump's Presidency and his plans for growth, economic prosperity, new jobs and rising wages.

All of that is, of course, yet to be revealed and if something is not according to plan, the US economy will react and Gold's price will be affected.

So, to all the Gold bugs out there - worry not for the best days of Gold are yet to come.

Chart: XAU/USD D1

Sterling Drops Against Main Competitors

The UK economy seems to be sailing along with not too many challenges. However, what has to happen next is quite a difficult cocktail for the government to manage. With that said, the Sterling tried to gain some strength over the last couple of weeks, but lately it has been very tough for the British currency to outperform its peers.

The Sterling is down this week against its main counterparts - the US dollar and the Yen. GBP/JPY reached a high of 138.82 yesterday and is now trading around 137.58, a sharp drop in less than a day. GBP/USD traded at 1.2512 and is now gravitating towards 1.2408.

Scheduled for later today we have the UK Autumn Budget Statement that can cause volatility in the market as well as Friday's GDP numbers.

Chart: GBP/JPY D1

EUR/USD Higher

EUR/USD is trading moderately higher in today's session after a few days of very volatile and uncertain movements. The pair is now steadily headed higher going from a low of 1.0569 to a high of 1.0649. Currently market price is 1.0642 and it appears that bulls are trying to bring a change onto the stage.

If the pair breaks first resistance at 1.0650 and closes above it then we have a good chance to see move to the upside this week.

It is possible that what the market is doing now can be considered "buy the rumor, sell the fact" in regard to the anticipated rate raise in December. If this is the case, then the positive reaction in the US dollar has already been conducted and now traders and investors are easing off the pressure and taking profits.

On the other hand, if EUR/USD goes back again below 1.06 this would mean the end of the bullish attempts to go over 1.0650 and bears would again be dominating.

Chart: EUR/USD H4

USD at 13.5 Year High

At this stage uncertainty is huge. No one knows what would happen next. A brutal raise in nominal rates means that real rates have not increased substantially. According to Unicredit the US dollar is overvalued and they don't think it will strengthen much more.

The USD Index was pushed up to 101.27, hitting the highest level in more than 13.5 years.

With the 13.5 year high one thing is considered a "done deal" now - The Fed has to raise rates in December.

On the other hand, the Euro is currently undervalued as growth in the Eurozone has maintained some momentum and expectations are that the Euro will begin to appreciate with the coming Eurozone elections.

Speculators anticipate parity with the rest of the major currencies, namely Euro, Sterling and Swiss Franc.

As of now, the EUR/USD is currently trading at 1.0623 with a low of 1.0569.

Chart: EUR/USD D1

EUR/USD 11-Month Low

EUR/USD is trading at an 11-month low today. The sell off started with Trump's Presidency and has been the main factor driving the depreciation of the pair. So far, EUR/USD lost some 700 pips since the Election day going from 1.13 to 1.06 in less than 10 days. This has been the most drastic downfall since February 2015.

Current levels are the lowest since December last year when price was at a low of 1.0523. Today the lowest we have is 1.0581 and the pair has been having difficulties since that low.

EUR bulls find it very hard to bounce off current levels even though this level is a very strong support that marks a triple bottom in the long-term.

The responsibility for the sharp drop goes to FED Chair Janet Yellen who stated yesterday that a raise is very likely to happen in December. Market participants understood this as a "done deal" and hurled to the US Dollar.

If that level does not hold the bearish pressure then the next one is seen at multi year low at 1.0462 made in March 2015.

Chart: EUR/USD D1

USD/CAD Correction

USD/CAD started the week off the right foot but since then it's been on the downturn for good. The pair reached 1.3592 on Monday and then bears took over and pushed the price to a low of 1.3402 yesterday. Currently, price is 1.3414 and it looks like it will keep depreciating. First support zone is seen at 1.3388 and if this is taken out bears might go for the home run at 1.3030.

Today's news will determine the winner in the current market situation as we are expecting the US Consumer Price Index. For tomorrow, the CAD Consumer Price Index will also play a role in forming the next move of the pair.

Since the major low of 1.2459 the pair has been very difficult to trade as there are multiple highs and lows day in and day out. The stagnation will most likely continue at least until the end of the year.

Chart: USD/CAD D1

USD/JPY Rallies

USD/JPY continues its rally that started on the day Donald Trump was elected for President of the US. On that day the pair registered a sharp drop to 101.19 and then rapidly recovered. Since then the pair has gained some impressive weight on the bull shoulders with a high today of 109.75. The pair seems very determined to visit the resistance level at 110.30 and considering the strength we've been witnessing, this could happen even today.

However, there are only minor challenges along the way that the US bulls must conquer, namely minor resistances at current market price 109.75 and 110. If these levels are taken over, 110.30 seems a sure deal.

Overall, USD.JPY is rallying because of certain factors that happen to coincide - the pair is already above the 200SMA and it has formed a strong bottom that plays a role in the sharp gains and also, fundamentally, chances for a rate hike are now above 90% thanks to future President Trump's win in the Elections.

Chart: USD/JPY D1

Gold Calmer After The Storm

During the Presidential Election day Gold saw a boost in prices that led to a high of $1,337. Top forecasters predicted that a Trump victory would rapidly depreciate the US dollar which would results in rising Gold prices. In the end of the day, however, Trump won and the US dollar rallied, bringing down all gains in the Gold market.

So Gold went from $1,337 to $1,267 in that day and has been depreciating since. Yesterday Gold made a low of $1,212 and has recovered moderately to current market price of $1,226. It appears that Gold has found some support and now bears will take a break. 

Strong support is seen at $1,200 which will form a double bottom and has the potential to sustain the bear rally and give bulls the chance to buy at good levels. If that support is broken Gold is likely to continue falling due to major factors contributing, namely the 92% chance of rising rates in December, price being below the 200SMA and the strengthening US economy. 

Chart: XAU/USD D1

EUR/USD Lower

EUR/USD is trading lower in today's session. The week is starting very positively for the USD bulls as they are pushing the price even lower than last week's low of 1.0830. Currently, price is 1.0756 with a low of 1.0728.

The latest rally in the US dollar is due to the optimistic look of Trump's policy regarding economic growth. Equities rally and the currency is strengthening as President-elect boosts confidence in the future of the US economy. Donald Trump steps into power in January and until then he must form his administration which will be responsible for taking care of all duties of the Presidential institution.

Traders and investors appear to be optimistic as the market is handling this transition very well so far. Gold is down to multi-month low at $1,212, Silver also registered a major blow that drove price down to $17.07.

Chart: EUR/USD D1

Working With Stop Losses and Take Profits | Webinar Review

We all know that Stop loss and Take profit orders are an essential part of any trader's toolkit. How important exactly they are became clear in yesterday's webinar by ActivTrades - Working With Stop Losses and Take Profits. The webinar was hosted by guest speaker Paul Wallace - professional trader with over 22 years of experience. 

The great thing about Stop loss and Take profit is that they are an indispensable risk management instrument. They allow for great control and certainty when it comes to potential losses or profits. 

One of the biggest traders of all time, Paul Tudor Jones, often talks about how using stop loss is one of his key elements to success. Personally, I have adopted his strategy and also use tight stops which allows me to never have troubles sleeping. 

ActivTrades did a great job with this webinar. As you know they have a schedule packed with great titles in their webinar section, just click HERE to visit. 

In case you missed it you can watch it in the Archives section.

USD/JPY Higher After Election Night

USD/JPY started the Election day very uncertain and when the initial results were published with Trump in the lead the pair took a nose dive. Due to the hype around Trump not having a clear vision about the economy and financial stability, the market interpreted the news negatively and the US dollar depreciated resembling the Brexit crash of June 24.

However, the markets quickly digested the fact the the newly elected President of the United States is named Donald J Trump and the US dollar recovered. Today, the situation is even better than before the election. The Greenback is going strongly to the upside as all USD pairs are feeling the boost.

More specifically, the USD/JPY. Today the pair has gained new points going from a low of 101.17 yesterday to a high of 106.92. Current market price is 106.50 and the pair looks very bullish still.

The Election caused a lot of volatility and the effect could be still be felt around the global market.

Chart: USD/JPY M15

Donald Trump is President of the United States

The American people have spoken - and the American people have elected their new leader, Donald Trump. The whole campaign did not look good for Trump, he lost all three debates, did not receive the support of current US President Obama and was not taken seriously by the media and research agencies.

During the Election day it looked good for Hillary Clinton but near the end all changed. All changed utterly as Trump won Florida, Ohio, North Carolina. No media or agency expected the outcome of this Election and now the world digests the historic result, i.e. Donald Trump is the 45th President of the United States.

Hillary Clinton refused to make a public appearance but she did give a call to Trump to congratulate him and concede the election.

The markets reacted sharply to initial results that showed Trump is in the lead, the US dollar depreciated rapidly imitating the  Brexit result but now everything is back to prior-election day levels. A classic buy the rumor, sell the fact scenario.

It will be an exciting 4 year period.

EUR/USD Consolidating Ahead of US Election

EUR/USD is consolidating today ahead of the US Presidential Election. Less than 10 hours left until the United States are officially into the Election night. Market participants are awaiting the results at the end of the Election day when it would be clear which one of the two candidates - either Donald Trump or Hillary Clinton would lead the way to the next four years of politics, economy and social welfare of the USA.

EUR/USD is not doing anything interesting so far today with price gravitating towards 1.1050 - a level that would most likely remain until the results come out. Have in mind that if Donald Trump wins, markets have a higher chance of high unpredicted volatility than if Hillary Clinton won the election.

Today's strategy would be to preserve your capital as risk remains high and heavy positions are not advisable due to the unpredictable consequences of the election on the market.

Chart: EUR/USD H4

AUD/USD At Resistance

AUD/USD is trading at resistance at current market price. The pair reached a high of 0.7708 and succumbed to lower levels but still in the resistance zone. It is unknown as of now whether the pair is headed to higher levels, but it is worth noticing that AUD bulls have been having a good rally for the past few months going from a low of 0.7145 to a high of 0.7755 which is very close to current market price of 0.7691.

Since it bottomed, AUD/USD is trading in a coil formation which appears to be nearing its end. The camp that pushes harder would be the winner and although bulls might have the upper hand for they have been building momentum for months now, bears need one bad news to destroy everything created by the bulls.

No major news are expected from AU side, on the other hand the US Presidential Elections have the potential to bring chaos into any US pair, AUD/USD not excluded.

Chart: AUD/USD H4

AUD/CAD At Short-Term Resistance

AUD/CAD is trading to the upside since it last touched 0.9810. The pair has been in an uptrend for more than a month and is only now showing signs of overbuying. A possible change to the other direction can be expected today as we await the CAD Jobs report scheduled for later today.

If the report is positive we will see the pair move down which would confirm the technical indication of a bearish move in the short-term. On the other hand, if we witness a disappointing data, AUD bulls will have the easy task to push prices above the short-term resistance when CAD bulls have no fundamentals to rely upon.

First support is seen at 1.0230 while first resistance is 1.0305.

The Australian dollar has been having a strong rally against all competitors for the past 2 months relying upon strong fundamentals and stable economic conditions. This makes it one of the strongest currencies to own in the last quarter of the year.

Chart: AUD/CAD H4

EUR/USD Higher

EUR/USD has been trading to the upside since Oct 25 when the pair reached a low of 1.0851 and bulls took over. Since then, EUR/USD has been seeing very good momentum to the upside making a high of 1.1125 earlier today. This appears to be happening when the Fed is indicating a non-raise year, ie the interest rates would most likely be left unchanged.

A lot of speculation still dominates the market that traders and investors are positive about the raise, but the data show a decrease in the percentage of a raise as the Fed needs more evidence.

The effect is a weakening US dollar. The US currency lost a good amount of its gains since last week and if US bulls should continue their rule, they need a boost from events driven data, namely a good report tomorrow.

Also, next Tuesday's elections are yet to reveal the impact over the market as participants expect different reactions from the market depending on which one of the candidates gets elected.

Chart: EUR/USD H4

Gold Shines Again

Gold is finally going higher after a few weeks of almost no volatility. The precious metal is now trading at almost a one-month high at $1,297. The move did not come as much as a surprise considering the weakening US dollar and the long consolidation it has been in for the past month.

News are out that a December raise is becoming unlikely and this impacted the US dollar causing it to lose strength over other currencies. The EUR/USD made a high of 1.1099 earlier today and is now 1.1083, USD/JPY and USD/CAD are losing their gains and it seems that investors' confidence in the US currency has been deflated.

All this takes us again to the all time safe haven - Gold. In the midst of market uncertainty Gold has performed well and this time is not an exception. Gold rose from a low of $1,241 to a high of $1,297 and is currently trading at its highest since the low.

First resistance is now seen at $1,300, second is $1,325 and major resistance is seen at $1,440.

Chart: XAU/USD D1

USD/CAD Uptrend

USD/CAD has been having a good move to the upside for the past two months going from 1.2828 to a high of 1.3433. The pair was capable of withstanding the bear attempts to bring it down and even the events on Friday did not have an impact on the bullish move.

Price is now 1.3408 as the pair is seen to be out of momentum for the past few days. The consolidation is coming to show that the trend may be exhausted and bears might have a chance. If they manage to bring it down below 1.3400 and hold it there until close, we might see a move further to the downside.

On the other hand, bulls have the upper hand as the price is already above resistance and there is still room for the momentum to push prices higher.

Important news are scheduled for today from both sides which will have an impact on the pair's future direction.

Chart: USD/CAD H4

GBP/CHF Consolidating

For a while now GBP/CHF has been consolidating at a support level around 1.2000-1.2100. The pair seems to have reached a level where market participants need to decide what to do next. On the one hand we have GBP bears that witnessed the latest flash crash on Oct 7 when the Sterling went down 6% only to recover more than half. The drop came as a surprise when volume traded was at a very low level. GBP/CHF from 1.2381 to a low of 1.1606 and a few hours later was 1.21. 

Since then, the pair has been trading sideways well below the 200SMA and dangerously playing with the support level. Bulls, on the other hand, will need massive action if they want to see prices soar. They have no advantage as we know how fragile the UK currency currently is, moreover, the pain from leaving the EU is yet to be felt, which could dramatically worsen the performance of the Sterling. 

A good position, either long or short, would be one with a tight stop somewhere in the range of 1.19 and 1.22. 

Chart: GBP/CHF D1

Financial Trading Summit 2016 by ActivTrades

ActivTrades is hosting a big big event next month. The UK based broker has been very busy recently in preparation of the Financial Trading Summit 2016. The event will take place on the 19th of November from 9:30 to 17:30 in the 5-star May Fair Hotel in London.

There would be a lot of guest speakers, active traders, mentors, analysts etc. Trading experts will share their styles of trading, insights on how to master your psychology as a trader and much more. 

This would be the best place for you to make new connections and create a network with other traders. 

If that's not enough, ActivTrades is giving away access to all of the participants in a two-week online course worth GBP495.

The event is absolutely free. To check the programme, speakers and to register click HERE.

USD/CHF Consolidating

USD/CHF continues its sideways trading in today's early European trading hours. The pair has been in consolidation for the past few days gravitating towards 0.9910-0.9940. The pair looks a bit exhausted as there isn't anything that could create volatility. However, later today we have important US data, USD Durable Goods Orders, that may give the pair the needed boost in either directions.

The pair did reach parity, or at least as close as it gets to parity, when USD bulls pushed the price to a high of 0.9998 and then retreated to lower levels. Current market price is beating yesterday's close but it's still not enough to give any impulse to the upside.

If the news are positive then we might see a break above parity, but if they fall below expectations, bears will take advantage and quickly turn the trend in the opposite direction.

First resistance is seen at 1.00, first support is seen at 0.9810.

Chart: USD/CHF D1

AUD/CAD Rallies

The Australian dollar has been witnessing good vibes recently, especially today when the news turned out to be in favor of the single currency. AUD Consumer Price Index came out better than expected at 1.3% vs forecast of 1.1%. The event played a significant role in every AUD pair, but the most effect was felt in AUD/CAD where the pair went from 1.0196 to 1.0286.

AUD/CAD has been trading above the resistance for the past week and now with the positive data it may try to reach the next level at 1.0500. If the bulls sustain momentum, AUD/CAD may even break the resistance line and go for the multi year high at 1.0800.

On the other hand, bears may try to turn the trend at 1.0350 and depreciate the pair to lower levels. As a start, they need to get back into the downtrend channel and then below the 200SMA. Major bear target is seen at 1.09140.

Chart: AUD/CAD D1

USD/JPY Higher

USD/JPY is trying to break out of the range trading in which it's been caught for the last three weeks. The pair made a good bullish rally in the end of September going from 100.08 to 104.16 but since that high things have been very difficult for the bulls. USD/JPY entered into consolidation and for the month of October it has been trading between 102.80 and 104.40.

Currently, USD/JPY is trading at the high end of the range at 104.41 and it appears that bulls may try to break out and close above the last high of 104.63. Main trend for the long-term remains bearish, but the bottom looks very stable indicating that a trend change is likely happening now.

If bulls get a close above 104.70 this might be the beginning of a new rally to the upside with first potential target at 107.50 and major target at 110.

Until then, USD/JPY has to break current resistance and if not, then bears have first target of 103.54 and then they need to get back to the downtrend below 102.

Chart: USD/JPY D1

USD/CAD At Resistance

USD/CAD is trading relatively unchanged since Friday's high after the pair got a boost when the CAD news were released. USD/CAD made a high of 1.3354 on Friday and closed at 1.3333. Today, the pair has been trying to hold to the gains from the past week and has been successful so far. USD/CAD made a new high today at 1.3358 but then retreated to lower levels below 1.3340. Main trend on the short term is bullish, the thing is that if bulls want to continue with the same pace they have to get above the resistance at 1.3350-1.3355.

That's the hard part as they have to rely on Friday's news and momentum because today we have no news coming out.

On the other hand, US Consumer Confidence is scheduled for tomorrow morning Eastern time and that may be another boost in the pair's price.

Until then, USD/CAD is trading with low volumes at current market price of 1.3335.

Chart: USD/CAD D1

USD/CAD Continues Sideways Trading

USD/CAD is yet again trading up and down day in and day out. The pair has been caught in range trading since it hit the bottom in early May after it made a history high in the end of January. January high of 1.4689 came as a surprise for most traders and investors as it was beyond any prior resistance and bull target. Since then, USD/CAD took a nosedive that lasted three months and cost the pair some 220 points going from 1.4689 to 1.2460.

Since May, USD/CAD has been very difficult to predict as the pair has not been going much but sway from 1.32 to 1.27. Lately, however, the pair has been playing with the 200SMA indicating that a time to move has come. 

Current price is 1.3245 with a high of the day of 1.3250. Market participants are anticipating today's CAD CPI and Retail Sales.

Chart: USD/CAD D1

Gold Looking Ill

Gold has been having a tough time recently. It's clear that the precious metal is struggling to hold the gains made during the year but as time progresses towards the end of the year, Gold has been neglected and has been losing its value. The downmarket started from the high of $1,375 on 11 Jul and now a hundred dollar cheaper Gold is trading at $1,270 with a low of $1,241.

What is more worrying is that the last gains have come to pass with great difficulty and if today we close at current or lower price, there is a great chance of a drop tomorrow and the next week. The price is gravitating towards the 200SMA which indicating that a movement in either directions is likely to occur. First support is seen at the last low, while major bear target is of course the psychological and long awaited $1,000 level.

However, Gold has had an amazing year with more that 30% rise, beating almost all of the other markets.

Chart: XAU/USD D1

USD/JPY Hesitating

USD/JPY has had a good bull run that came as a surprise when market participants expected the Abenomics (economic policies advocated by Shinzo Abe) to continue to lift the Yen against its peers. However, the Yen reached a low of 100.08 and then reacted to the upside thus confusing USD/JPY bears.

The rally came short when the pair reached a high of 104.63 which does not coincide with any of the resistance levels. Now the price has retreated to lower levels and the pair is currently trading at 103.49 with a low of 103.41.

Main trend on the long-term remains bearish, but what is interesting is that the pair had had three strong bounces off the support line at 98.95, 99.54 and the latest - 100.08. In order for the bearish trend to continue, bears must get a close below those levels.

On the other hand, bulls may have the easier task as the have some momentum with the recent rally. They may be able to reach the 200SMA at 107 before year end.

Chart: USD/JPY D1