Near term support 1.3860. Break below this level and the uptrend line may see further weaken of the British pound.
Near term support 1.3860. Break below this level and the uptrend line may see further weaken of the British pound.
EURGBP, H4 : The situation quite interesting if british pound continue weaken against Euro we may see EURGBP goes further up.
Gold near term resistance 3368.00. If price break above this level we may see another uncertainty as happened in 16 June.
We have very strong bullish trend on several japanese cross currency pairs.
Have a look at below charts attached :
CHFJPY Weekly Chart. This pair looks trending very high
EURJPY daily chart.
Introduction
The moving average crossover strategy is one of the most popular and widely-used technical analysis tools among traders. This simple yet powerful approach helps identify trend directions and potential entry/exit points in various financial markets, including stocks, forex, commodities, and cryptocurrencies.
What is a Moving Average Crossover?
A moving average crossover occurs when two moving averages of different periods intersect on a price chart. These crossovers are interpreted as potential buy or sell signals, depending on the direction of the crossover.
Types of Moving Averages Used
How the Strategy Works
The most common version uses two moving averages:
Buy Signal
When the fast MA crosses above the slow MA, it generates a buy signal, suggesting the start of an upward trend.
Sell Signal
When the fast MA crosses below the slow MA, it generates a sell signal, suggesting the start of a downward trend.
Variations of the Strategy
Advantages of the Moving Average Crossover Strategy
Limitations and Challenges
Optimizing the Strategy
To improve performance, traders often:
Practical Implementation Tips
5. Conclusion
6. The moving average crossover strategy remains a cornerstone of technical analysis due to its simplicity and effectiveness in trending markets. While not perfect, when combined with proper risk management and other confirming indicators, it can be a valuable tool in a trader's arsenal. As with any trading strategy, thorough backtesting and practice in a demo account are essential before applying it to live markets.
7. Remember that no single strategy works all the time—successful trading requires discipline, continuous learning, and adaptation to changing market conditions.
USD/JPY slipped lower on Tuesday as renewed concerns over U.S. tariffs and their potential impact on global growth spurred demand for the safe-haven yen.
U.S. President Donald Trump’s unpredictable trade policies have triggered notable dollar selling since April, prompting investors to move away from U.S. assets and boosting the euro, yen, and Swiss franc.
Investors have focused on the potential for easing U.S.-China trade tensions, following Beijing’s announcement last week that it was assessing a U.S. proposal to hold tariff talks.
However, with few details available, investors have been left trying to interpret mixed signals from the White House.
Market focus now turns to the Federal Reserve’s policy decision on Wednesday, where rates are expected to remain unchanged, but attention will center on how officials plan to steer policy amid ongoing tariff-related uncertainties.
Immediate resistance is located at 143.54 (50%fib), any close above will push the pair towards 145.03(61.8%fib).
Support is seen at 142.11(38.2%fib) and break below could take the pair towards 140.23(23.6%fib).
Source : FxWirePro
7 February 2023, 15:48
The GBP/USD pair attracts fresh sellers following an intraday uptick to the 1.2055 area and turns lower for the fourth successive day on Tuesday. Spot prices drop to a fresh one-month low heading into the North American session, with bears now eyeing to challenge a technically significant 200-day SMA near mid-1.1900s.
The US Dollar reverses an intraday dip and holds steady near a one-month peak touched on Monday, which, in turn, is seen exerting downward pressure on the GBP/USD pair. The upbeat US monthly jobs data (NFP) released last week fueled speculations that the Federal Reserve (Fed) will stick to its hawkish stance. This, in turn, remains supportive of a modest intraday uptick in the US Treasury bond yields and acts as a tailwind for the greenback.
In contrast, the Bank of England last week signalled that it was close to pausing the current rate-hiking cycle. In fact, the UK central bank removed the phrase that they would "respond forcefully, as necessary". Furthermore, BoE Governor Andrew Bailey said that inflation will fall more rapidly during the second half of 2023. This, in turn, is seen weighing on the British Pound and contributing to the offered tone surrounding the GBP/USD pair.
Apart from this, the prevalent cautious market mood - amid looming recession risks - further benefits the greenback's relative safe-haven status against its British counterpart. Tuesday's intraday slide could also be attributed to some technical selling below the 1.2000 psychological mark. This, in turn, supports prospects for an extension of the depreciating move, though traders might wait for Fed Chair Jerome Powell's speech for a fresh impetus.
Investors will closely scrutinize Powell's comments on inflation and monetary policy for clues about the Fed's future rate-hike path. This, in turn, will play a key role in influencing the near-term USD price dynamics and produce some meaningful trading opportunities around the GBP/USD pair in the absence of any relevant market-moving economic releases.
7 February 2023, 15:31
EUR/USD remains well on the defensive and drops to new lows in the sub-1.0700 zone on Tuesday.
The pair has recently broken below the 3-month support line near 1.0770, and this now allows for the downtrend to gather extra impulse in the near term. Against that, the next interim support comes at the 55-day SMA at 1.0662, while the breach of this region could open the door to a deeper retracement to the 2023 low at 1.0481 (January 6).
In the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0319.
Following US FOMC rates announcement, here are some chart showing the big move after the news.
It is possible to trade the news to capture 20pips or more but expect bad slippage and re-quote from broker.
Watch the video :
This simple trading strategy can be applied to any instrument on any time frame. This strategy using two ocillator, ADX with 16 period setting and MACD setting of 3, 9, 16. Some say that a trend indicator alongside an oscillator is the most efficient combo.
Any of these three pair suits the strategy: EUR/USD, GBP/USD, AUD/USD. Experienced traders/investors stick to these ones because majors have more predictable behavior, and tech analysis works much better on them. Recommended time frame should be on shorter period.
To open a position, start by analyzing the activity of ADX with period
16. Make sure you choose correct settings when adding the indicator to
the trading terminal.
Signals in the strategy do not differ from "classic" ADX signals. As you
know, the author claims that a crossing of +Di and -Di as it is already
gives a market entry signal. For example, if +Di crosses -Di from
below, this is a signal to buy, and if -Di crosses +Di from above, this
signals to sell.
+Di and -Di show the difference between today's and yesterday's high and
low. So in the first case, when +Di goes up, the trend must be
ascending because today's highs are higher than yesterday's. Hence,
buying is the best option in such circumstances. Meanwhile, when -Di
values go down, we can conclude there is a bearish impulse and get
prepared for selling.
Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading around lower border of the cloud. The closest support level is the upper border of the cloud (0.8745). The closest resistance level is the upper border of the cloud (0.8940).
On the both charts the instrument is still falling. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (0.8745) and Stop Loss at the lower border of the cloud (0.8940).
Scenario | |
---|---|
Timeframe | Intraday |
Recommendation | SELL |
Entry Point | 0.8889 |
Take Profit | 0.8745 |
Stop Loss | 0.8940 |
Key Levels | 0.8720, 0.8745, 0.8940, 0.8990 |