The AUD/JPY has stalled on its recent rally as it failed to break through the 200-day simple moving average (SMA) at 82.03 last week. That level is now a potential resistance point as it failed again 2 days later to go higher.

Above that level is further possible resistance at the 61.8% Fibonacci retracement level of 82.79, calculated from the May high of 85.81 to the August low at 77.90. This retracement level closely coincides with a previous high at 82.82. Further resistance may lie at the previous highs of 84.26 and 85.81.

Immediate support may be provided at the 21-day SMA of 80.34 and at the previous low of 77.90.

Chart created in TradingView

The AUD/NZD remains in a descending channel and there are several trendlines with a negative gradient. In late August, the cross made a new low for the year when it broke through the previous low of 1.0418.

Trendline support, currently at 1.0310, may lend some potential for a turn higher, and a...

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Taking a look at IG Client Sentiment (IGCS), retail traders appear to be increasing upside exposures in major benchmark stock indices such as the S&P 500, Dow Jones and DAX 30. IGCS is typically a contrarian indicator, especially in trending markets. If investors continue buying into recent price action, then there risks being further downside room for these indices. To learn more about using this tool in your own trading strategy, check out the recording of this week’s webinar that I hosted.

The IGCS gauge implies that roughly 46% of retail traders are net-long the S&P 500. Upside exposure has increased by 10.88% and 31.80% over a daily and weekly basis respectively. We typically take a contrarian view to crowd sentiment. Since most traders are still net-short, it suggests prices may keep rising. However, the recent shifts in positioning are tilting the S&P 500 outlook to the downside.

AUD/USD moved lower as Chinese year-on-year retail sales came in at 2.5% versus the 7.0% forecast and last month’s 8.5%. Industrial production printed at 5.3% against an expected 5.8% and prior 6.4%. Today’s numbers come against the backdrop of disappointing China PMI data from a fortnight ago. The data has added to already negative sentiment for risk assets in Asia with most equity indices trading in the red.

The Chinese Communist Party continues to implement its ‘shared prosperity’ policy which has weighed on Chinese equity markets as many sectors are forced to re-adjust to a new set of regulations. Prior to the data today, Chinese gaming stocks had already moved lower on more announcements of tighter scrutiny.

The price of oil climbs to a fresh monthly high ($73.14) following a larger-than-expected contraction in US inventories, with crude breaking out of a descending channel as fresh data prints point to limited supply.

Gold prices have continued to coil into another week, but that hardly tells the story of what’s going on here.

There’s rampant debate about when/if/how the Fed is going to begin tapering asset purchases and the backdrop hasn’t exactly been quiet with the delta variant and Afghanistan all producing some risk factors on the horizon. Gold prices have been seeing two-way-volatility on the back of this constant risk conundrum, and the entire outlay produces a number of questions around economic viability of the current recovery.

Another risk factor popped up last week with what’s happening in China with Evergrande, producing another possible item of concern as Central Banks look to start lifting off of the uber-accommodation that’s become commonplace over the past 18 months. On that topic, we’ll hear from the Fed next week and at this point the basic steps have been laid to allow for the bank to put forth a plan for how they’re looking to taper asset purchases. The big...

USD/JPY has been more resilient than I originally expected and is dragging out the consolidation of the symmetrical pattern it’s in. The final leg of the pullback has been extended as the pair found support around 109.115 back in mid-August, but even after accepting a widening of the final arch, sellers have been unable to make a significant breakthrough, which now makes me question whether we will see the pattern fully consolidate in the end.

USD/JPY Daily chart

The original target was 108.50 but USD/JPY has been well supported at 109.50 throughout the last month of trading, only managing to finally break below in the trading session this morning. What’s interesting is that most daily candlesticks on this chart have a long tail on either side, which shows reluctance from traders to commit to a direction. Take Tuesday’s candlestick for example, USD/JPY went as low as 109.53 throughout the session but close around 109.74, meaning sellers have had to cover an...

USD/JPY has been more resilient than I originally expected and is dragging out the consolidation of the symmetrical pattern it’s in. The final leg of the pullback has been extended as the pair found support around 109.115 back in mid-August, but even after accepting a widening of the final arch, sellers have been unable to make a significant breakthrough, which now makes me question whether we will see the pattern fully consolidate in the end.

USD/JPY Daily chart

The original target was 108.50 but USD/JPY has been well supported at 109.50 throughout the last month of trading, only managing to finally break below in the trading session this morning. What’s interesting is that most daily candlesticks on this chart have a long tail on either side, which shows reluctance from traders to commit to a direction. Take Tuesday’s candlestick for example, USD/JPY went as low as 109.53 throughout the session but close around 109.74, meaning sellers have had to cover an...

Double top patterns are noteworthy technical trading structures to learn and integrate into a trader’s arsenal. Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature.

Double Top Pattern: Main Talking Points:

GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall healthand potential growth of a country.Consequently, greater volatility in the forex market is closely observed during the GDP release.

“Is there a best time frame to trade forex?” is a common question a lot of traders ask, especially those new to the forex market. The truth is, there is no single answer. It all depends on your preferred trading strategy and style.

Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Trend charts refer to longer-term time frame charts that assist traders in recognizing the trend, whilst trigger chart pick out possible trade entry points. This article will explore these forex trading time frames in depth, whilst offering tips on which can best serve your trading goals.

Talking points:

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...

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.

Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. While applying sound technical and fundamental analyses is key, having an additional feel for the market consensus can add depth to a trader’s view of forex and other markets. In this article, we outline what market sentiment is, how it relates to forex trading, and what the top sentiment indicators are.

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.

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...

There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Each major geographic market center can exhibit vastly unique traits and tendencies that can allow traders to effectively execute strategies at any time.

Although the forex market is the most liquid of all asset classes, there are periods whereby volatility is constant, and others subdued. Understanding these different forex session times can improve the reliability of a forex trading strategy.

In this article, we will explore each of these forex market sessions including their key characteristics – forex time zones and how they affect trading.

The US Dollar may be attempting to push for a comeback against the Singapore Dollar, but the road ahead remains tough. USD/SGD recently formed a Doji candlestick within the downtrend since late August. There was some upside follow-through after, but two key technical signals are favoring the downside. The first is a bearish Double Top chart formation after prices broke under the 1.3502 – 1.3474 neckline.

Now, a bearish crossover between the 20- and 50-day Simple Moving Averages are underscoring the downside bias. Resuming the downtrend may see prices aim towards the 61.8% Fibonacci retracement level at 1.3382. On the other hand, climbing back above the neckline of the Double Top could be a hint that USD/SGD may resume the uptrend that followed June’s bottom.

Chart Created in TradingView

The US Dollar is also attempting to resume its upside momentum against the Thai Baht. On the daily chart below, USD/THB bounced off the midpoint of the Fibonacci...