JazzForex

JazzForex

Last week started with a move lower for this pair as the Chinese trade balance was showing a much lower than expected reading. The market anticipated a negative effect on the Australian economy by this Chinese slowdown. Later in the week the pair recovered after some very good Australian employment data caused the market to change its view on an RBA rate cut in...

JazzForex

I am listing the tools I use daily, during my trading schedule, when I trade the Forex market. I am using general descriptions in this list since I am not endorsing any particular paid service, or website. Tradingview A high quality charting platform with all the price charts and many powerful yet intuitive tools. Every single trade I take I chart it here...

JazzForex

The Pound took a beating last Friday and dropped significantly against the dollar on the back of disappointing industrial production and construction data coming out. The cable even fell to a low we had not seen since 2010, which confirms a continuation of the downtrend that started July of last year. As a matter of fact, since Wednesday the 8th (the day the...

JazzForex

The Euro obviously is a weak currency though it rallied a couple of times the last month for no real fundamental reason . It seems it seized the opportunity to capitalise on the recent uncertainty surrounding the USD after the last FOMC statement left the market confused on its direction and after the poor NFP numbers that came out last week. Traders have been...

JazzForex

Due to time restrictions, no fundamental analysis on this pair. It has been trading in a 134 pip wide bullish parallel channel for almost 10 days on the 30m timeframe. We can now see a bullish Bat pattern having developed. Price is already testing the full potential reversal zone (PRZ). With this, the set up qualifies as a trade candidate and it goes on my watch...

JazzForex

The policy divergence between the FED and the BoJ keeps me fundamentally bullish on this pair. The BoJ announced yesterday it would leave its policy unchanged, despite lower inflation. Had they announced a surprise move to spur inflation, we would have already seen a much higher price for this pair, but they refrained from additional easing. After the bad NFP...

JazzForex

Currency correlation measures the extend in which two individual currency pairs move in the same or in opposite directions. It´s usually expressed as a percentage, from -100% to +100%. Positive correlations (from 0% to 100%) indicate how much two pairs move in the same direction. Negative correlations (from 0% to -100%) indicate how much two pairs move in opposite...

JazzForex

With QE having started on the 9th of March and the Greece situation still being unresolved, I remain fundamentally bearish on the Euro. Not to mention the strong USD, which is weakening the Euro as well. I believe it will continue to be sold off against most other currencies, including the Yen. This pair has been ranging in a 290 pip wide bearish parallel channel...

JazzForex

The cable has been trading in a 215 pip wide bearish parallel channel on the hourly timeframe for over 16 days, providing several opportunities to sell the high along the way. Fundamentally the USD is king, with the Dollar Index printing four consecutive weeks of gains and finally breaching the key 100 level. The GBP on the other hand has softened even though the...

JazzForex

This pair fell 75 pips on Friday after a stellar NFP strengthened the USD. A strong decline of gold also helped to create selling pressure for the Aussie Dollar. The markets expectation of a FED rate hike this summer has certainly increased, so I am fundamentally bearish on this pair. That being the case, I have to take into account what I actually see in the...

JazzForex

This is an update to the trade idea linked under Related Ideas, where I had spotted a bearish Gartley pattern on the 4H timeframe of this pair. For a further description of that trade I refer to the link. Since then the price printed a new C point for this pattern, widening the potential reversal zone (due to the shift of the AB=CD pattern which is a key harmonic...

JazzForex

Fundamentally there are several forces at work on this pair. There is a safe-haven demand for the Yen after China’s downgrade of its growth outlook creating some selling pressure while the policy divergence between the FED and the BoJ creates buying pressure. On the daily timeframe it has been trading inside a triangle consolidation pattern since December last...

JazzForex

1. As a novice trader, one of the biggest mistakes you can make, especially after having had a number of successful trades, is thinking you know what you are doing when you actually don´t. This will be the cause of every trading error you have the potential to make. 2. It takes absolutely no skill at all to place a winning trade. It does to consistently do...

JazzForex

This pair has been trading sideways for a couple of days, oscillating around the 1.25 level. And as we know, consolidation breeds advanced price patterns. Today there is a host of Canadian and US data coming out that could give it an impulse. The key US data point today will be the ADP employment change. Its the prelude to NFP and might give us a hint of what that...

JazzForex

There are several EURO news events this morning (pmi´s and retail sales). Depending on whether they are favorable or unfavorable as a whole, we could have an opportunity to trade out of those news events with the reversal of an advanced price pattern that is nearing its completion on the 4H timeframe. Price is already testing the potential reversal zone and this...

JazzForex

I am fully aware of the risk that sequels tend not to be as good as the original (Rocky comes to mind), but I could not resist putting this pair on my watch list again. As my last two publications on this one (see links under Related Ideas) left me with a good amount of pips, I thought I would try to cash in again. I therefore present to you the new installment in...

JazzForex

In general, I am expecting a continuation of GBP strength the coming week, drawing support from steady economic growth with the revised GDP coming out as expected and recent labour market data coming our positive. The Japanese Yen on the other hand is under pressure with the BoJ revising their growth forecast lower and most of the recent Japanese data...

JazzForex

TEST YOUR TRADING SYSTEM I will not go deep into this, because it quickly becomes a shouting match on who has the best system, which is usually more about ego than fact. It is sufficient to say that I have seen / know of profitable traders who use fundamentals, price patterns, Elliot waves, renko, moving averages, structure levels, pitchforks, trend rules and...