The SMART Approach To Trading Research

As you know, from time to time I share with you resources such as free webinars that can improve your trading performance and increase profits.

If you follow closely ActivTrades you would know that their latest webinar "The Smart Approach To Trading Research" was packed with useful insights and knowledge. This time it was Paul Matheson who conducted the webinar and provided complex strategies in a simple manner. If you watched the webinar you know what is meant by SMART:

Make sure you follow future free events by staying up to date with their webinar page HERE.

EURUSD Broke Support

The pair fell sharply yesterday after the FOMC did not take any action to change the interest rate, keeping it at its current near zero. The FOMC voted 9-1 to leave the Federal Funds Rate unchanged between zero and 0.25%. The Fed also hinted that a raise is still on the table before the end of the year. The hawkish stance sent the euro tumbling against the dollar, as it fell below 1.09 for the first time since early-August.

The pair is currently trading at 1.0968 witnessing some short-covering and profit taking but the negative impact would leave the pair unstable for the next few days at the least.

Chart: EURUSD D1

EURUSD Below 200SMA

The pair is in its 4th day to trade below the 200SMA. It is currently on its strong support level on the lower trend line at 1.10. Although the pair tried to climb above the 1.11 mark it failed to maintain momentum and gave up in the face of all the bears in the market.

In light of the strong support now might be a good time for long-term traders to open a long position with a tight stop below 1.0965. But I personally would advise all bulls to be patient and observe what the pair will do in the next few days and will it manage to go over the 200SMA. The general rule is "stay away from everything that is below the 200SMA", don't forget this!

Chart: EURUSD D1

AUDUSD Losing Ground

The pair fall to its three-week low in the early trading European session today. It hit 0.7110 and is currently trading at 0.7125. It managed to hold in the descending trend channel as it found resistance around the upper line at 0.7380.

If it continues to trade in the channel, resistance could be expected at 0.7250 while immediate support is 0.7060 and then 0.6980. From there, price could try and form a new upward channel, according to technicals.

Chart: AUDUSD H1

Gold Steady

The price of Gold has been relatively unchanged for the last few days, circulating in the range between $1,170 and $1,160. Currently Gold is trading at $1,164 and all this consolidation might mean one thing - it's about to head either down or up. Now, technically Gold was in sell zone when it reached $1,192 and fell below $1,178.

What happens next would be decided by the tape so do not try and fight the tape. Main trend remains pointing to the south and I am expecting a fall below $1,000 for the next year.

Chart: H1 XAUUSD

EURUSD Sharply Lower

The EURUSD opened at 1.1340 today and is currently trading at 1.1110-1.1112. This is due to the press conference of Mario Draghi and the ECB rate decision. President Mario Draghi said that the bank will reassess whether to extend its massive bond-buying program by the end of the year. Draghi and ECB members left the door open for more monetary stimulus but stopped short of announcing any new policy measures. Because of this announcement the Euro lost more than 200 pips against the once again dominating US Dollar.

Strong support may be found at 1.1070 and if this level is breached it would be best to wait and stay away until price defines a new trend.

Chart: EURUSD H4

Gold Below 200SMA

For the past few days Gold was trying to keep its position above the 200SMA. This is the only reason investors and traders held their long positions in the precious metal. Expectations, however, are often different than reality. This is the case that we witnessed in this scenario, too. 

Gold climbed above the 200SMA, stayed there for a few days and reversed back below it. It went up to $1,192 and then a few days later fell to $1,163 to currently trade at $1,167. 

Market sentiment remains bearish, so if you have any open long positions you may want to wait for brighter days. 

Chart: H1 XAUUSD