The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. As a result, the ISM manufacturing, construction and services indicators can provide unique opportunities for forex traders, which makes understanding this data (and how to prepare for its monthly release) essential.

Talking points:

Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

FOMO – Fear of Missing Out - is a relatively recent addition to the English language, but one that is intrinsic to our day-to-day lives. A true phenomenon of the modern digital age, FOMO affects 69% of millennials, but it can also have a significant bearing upon trading practices.

For instance, the feeling of missing out could lead to the entering of trades without enough thought, or to closing trades at inopportune moments because it’s what others seem to be doing. It can even cause traders to risk too much capital due to a lack of research, or the need to follow the herd. For some, the sense of FOMO created by seeing others succeed is only heightened by fast-paced markets and volatility; it feels like there is a lot to miss out on.

To help traders better understand the concept of FOMO in trading and why it happens, this article will identify potential triggers and how they can affect a day trader’s success. It will cover key examples and what a typical day...

Risk management is at the core of any good trading plan, without having a sound set of principles to follow a trader is doomed to fail. We outline rules and factors to consider when customizing a risk management game-plan right for you.

We understand the difficulties of trading, which is why we’ve put together a variety of guides designed to help traders of all experience levels.

Risk management is one of the most important aspects to successful trading, but far too often it’s overlooked. Job #1 for a trader is to always keep yourself in the game. A sound strategy and the discipline to follow it will go long way towards ensuring you stick around.

If you are in the learning stage, your objective is to keep losses very small until you figure out what you are doing from an analytical and strategy standpoint. Adhering to sound risk parameters early-on will go a long way towards building a foundation for later on.

For the more...

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Technical Outlook: In my last Gold Price Outlook we noted that XAU/USD was, “carving out the weekly / monthly opening-range just above long-term uptrend support. From at trading standpoint, the immediate focus is on a break of the 1795-1833 range for guidance with the threat for a deeper correction while below 1841.” Gold registered a high at 1831 the following day before reversing sharply with a break below support at 1795/99 exposing a decline of nearly 7% - price briefly marked a low into critical support at the yearly lows before reversing sharply – is a low in place?

Initial resistance now stands at the sliding parallel (basically today’s high) backed by key technical levels at the 2012 high/ 78.6% Fibonacci retracement at 1795/99, the 100-day moving average at 1805 and the objective monthly open at 1814. Broader bearish invalidation now lowered to the 61.8% retracement / July...

AUD & NZD Sentiment Deteriorates, USD Bulls Return – COT Report

In the latest reporting week, CFTC data highlighted renewed buying in the USD albeit marginally so. As I had noted in last week’s report, speculative demand for the greenback was to be expected following strong NFP data and recent hawkish Fed commentary. That said, as we head towards the Jackson Hole Symposium I continue to favour USD upside, particularly with global growth concerns providing a cautious backdrop, in which safe-haven currencies tend to outperform.

As global growth concerns are predominantly stemming from the weaker Chinese backdrop, sentiment in both the AUD and NZD have deteriorated, most notably in the leveraged fund community. Much of Australia remain in lockdown and while the RBA provided a bit of breathing room for the Aussie by refraining from delaying a taper, this has provided an opportunity for market participants to renew short positions in the currency. The Kiwi on the...

The US Dollar has finally found some element of support after the pullback that developed last week. Prices in DXY had pushed up for a test of the four-month-high ahead of the release of July inflation numbers. And once again, inflation came out well above the Fed’s 2% target. But, the beat on the expected number was milder than prior months, leading to the hope that some of the recent inflationary flare was/is transitory in nature. And prices in USD pulled back after another 5% inflation print, likely due to some relative cooling in the print’s release v/s the expectation.

In USD, prices initially pulled back to the zone around 92.89 and after a mild bounce, sellers drove down to another big area of support around 92.46 on DXY. In this area are two different Fibonacci retracements: The 23.6% retracement of the 2020 sell-off and also the 23.6% retracement of the Q1 bullish trend.

To learn more about Fibonacci, check out DailyFX Education

Chart prepared...

NZD/USD appears to be stuck in a defined range as a growing number of Federal Reserve officials show a greater willingness to switch gears, but the Reserve Bank of New Zealand (RBNZ) interest rate decision may influence the near-term outlook for the exchange rate as the central bank is expected to lift the official cash rate (OCR) off of the record low.

The DAX 30 is starting the week a little softer after setting a new record high on Friday, having crossed the 16,000 mark for the first time ever. Weaker than expected data out of China this morning has set the mood this morning as it serves to show that the second-largest economy is struggling to keep up growth momentum amid the recovery from the covid-induced recession.

Also dampening the mood this morning is the political tensions arising from Afghanistan, after the Taliban troops have seized control of pretty much all of the country, taking over the capital city of Kabul overnight. It’s hard to assess at this point how much impact this situation will have on the markets, but it could have a negative effect on equities should tensions escalate further.

DAX 30 Daily chart

The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. This article will look at the potentially higher probability forex trading opportunities of the bull flag pattern.

Learn to trade the bull flag pattern: Main talking points??

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It’s not uncommon for forex traders to approach trading with the aim of collecting ‘x’ many pips a day from the market. Some may even consider adopting a strategy that only makes X amount of pips per day. However, there are complications that arise from this approach and setting such unrealistic goals.

This article will answer the question: “how many pips per day?” and explore the best approach to using pips – considering market fluctuations which affect daily pip movements and how to capitalise on this with a solid trading strategy.

The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Often associated with indecision in the market, Spinning Top candles can provide valuable supporting information to a trading strategy. The main talking points of this article are:

Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

When it comes to buying and selling forex, traders have unique styles and approaches. This is because the forex market is one of the most liquid and largest in the world and as a result there is no one single way to trade.

Knowing when to buy and sell forex depends on many factors, but there tends to be more volume when markets are volatile because of the associated higher risk. This article will explore the concept of buying and selling currencies using practical examples as well as additional resources to boost your forex trading experience.

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. As a result, the ISM manufacturing, construction and services indicators can provide unique opportunities for forex traders, which makes understanding this data (and how to prepare for its monthly release) essential.

Talking points:

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine how successful the trade is. This article hones in on 3 trading exit strategies that traders should consider when looking to get out of a trade.

Trading bias is a predisposition or perspective of the financial markets whereby traders believe there is a higher probability of a certain outcome as opposed to any other alternate possibilities.

These trading biases are determined by technical and/or fundamental factors that support a specific outlook that explains market behaviour. This often relates to market trends being either bullish/bearish which signals appropriate trading strategy and style.

Last week, the Dow Jones Industrial Average managed to extend gains into new all-time highs after having spent the better part of the past three months trading sideways. The S&P 500 also climbed into record territory. It was the tech sector that fell relatively behind, with the Nasdaq 100 trading mostly flat. Could this be a meaningful turning point for the cyclical sector, which tends to closely follow the swings of the economy?

On the chart below, a ratio of the Nasdaq 100 to the Dow Jones can be seen inversely tracking the US 10-year Treasury yield. The latter is often viewed as a gauge of Fed monetary policy expectations and overall economic growth bets. As the Dow Jones consolidated, the 10-year yield trended lower, reversing much of the upside progress from the first quarter.

Dimming global growth prospects may have been fueling this trend, especially amid rising Covid-19 cases caused by the more contagious Delta variant. A deluge of “Fed-speak” this...

Stocks and commodities are two of the most widely-traded financial products today. These asset classes can serve as a powerful influence on the economy, business infrastructure and the trading behaviors of millions around the world. Read on to discover the nuances of commodities vs stocks, the trading styles that suit each, and why understanding their interplay is useful.

There are a number of differences between commodities and stocks, both as properties and in terms of how they are traded.