Best Forex - Editor's Choice

Broker Free Demo Min. Deposit Payout Payback Rating Sign Up
$100
81%
-
Sign Up
$100
71%
15%
Sign Up
24option

24option.com is a label powered by seasoned professionals in the fields of Forex trading and online marketing.
Their combined expertise ignited the launch of the 24option platform.The ease of use of the 24option user interface, online assistance and highly dedicated support make trading simple.

Anyoption

AnyOption is one of the Leading Binary Options Brokers on the market and one of the Pioneers on the web.

They offer the only trading platform on Iphone and Ipad that you can use to place trades wherever you are.

News

noimage

Australian Dollar Soars as RBA Drops Call for Depreciation

Talking Points:

  • Australian Dollar Soars as RBA Statement Drops Call for More Depreciation
  • UK Construction PMI Unlikely to Stir British Pound as BOE Meeting Looms
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The Australian Dollar outperformed in otherwise quiet overnight trade, rising as much as 1.2 percent on average against its top counterparts. The move followed the RBA monetary policy announcement. While the central bank kept the baseline lending rate unchanged at 2 percent as expected, the statement released following the sit-down revealed moderation in policymakers’ rhetoric about the exchange rate. Specifically, Governor Glenn Stevens conspicuously left out recently ubiquitous language saying further Aussie depreciation is “both likely and necessary”.

July’s UK Construction PMI report headlines the economic calendar in European hours. Expectations call for the index to edge narrowly higher to 58.5 from 58.1 recorded in the prior month, reflecting a slight acceleration in the pace of home-building sector activity growth. The outcome may not inspire follow-through from the British Pound however as traders withhold directional conviction until after this week’s much-anticipated Bank of England policy announcement passes.

New to FX? START HERE!

Asia Session

European Session

Critical Levels

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya’s analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

noimage

Oil Consolidates After Brent Collapse to Six-Month Low

Talking Points:

  • Oil consolidated in early Asia trade after Brent plunged below $50
  • Copper weighed by a weak Caixin China Manufacturing PMI
  • Gold and precious metals dragged by commodities selling

The Caixin China Manufacturing PMI missed expectation and disappointed the market at 47.8, lower than 48.2 in the previous month. The data amplified Chinese growth concerns after an unimpressive official Manufacturing PMI last Saturday and led to broad selling in commodities.

The deal to curb Iran’s nuclear program in return for lessen sanctions reportedly won further support from the Gulf Arab monarchies, which would bolster chances for a U.S. Congressional approval. Iran’s vow to speed up oil production within a short time of sanction lift could exacerbate the current supply glut.

WTI and Brent oil recovered in the Asian morning after a huge overnight sell-off. WTI lost 4.1 percent and Brent gave back 5.2 percent due to the China-led commodities rout and provisional Iranian oil. Baring new developments, both oil indicators may linger above yesterday’s lows, at 45.06 for WTI and 49.34 for Brent.

Looking ahead, oil may still decline further as U.S. refineries slow down during August-October for maintenance.

Copper continued to slide along with other metals under the impact of demand concerns after unimpressive PMI numbers from China and the US. Copper lowered to a fresh six-year low in the previous session. The metal market is awaiting further steps from Chinese government to stimulate growth, likely in the forms of interest rate cut or fiscal policy.

Gold carried on losses in Asian trade after data from the US hinted at modest support for growth and the case of higher interest rate. Investors also dropped precious metals as part of the commodities flight. Given steady demand from China and India, there is not yet an imbalance in the gold market that would prompt a decline past the 1071 level.

Data to watch: Commodity Index AUD slated for Australian afternoon.

GOLD TECHNICAL ANALYSIS – Gold has lowered on a third day of lower-high today, although it stayed firmly in range with a floor at 1071.2. Topside of intraday prices continues to be restricted by a resistance level at 1110. There is not yet a downtrend signal from moving averages. The gold bears may stick to range trades in the meantime.

Oil Consolidates After Brent Collapse to Six-Month Low

Daily Chart – Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper completed a fourth day of lower-low in the previous session and broke a support level at 2.3360. Today copper prices have hovered above this level, although another breach is not ruled out. Downtrend signal in moving averages looks to resume and copper is poised to head lower. There is still plenty of leeway on the way down towards the May-August support trend line.

Oil Consolidates After Brent Collapse to Six-Month Low

Daily Chart – Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS The sharp fall in WTI oil halted by early Asian morning and prices have stayed elevated above yesterday’s low at 45.06. Intraday prices seem to enter a consolidation period in this proximity. Any topside extension during today or tomorrow sessions would provide the bears with opportunities to enter short positions.

Oil Consolidates After Brent Collapse to Six-Month Low

Daily Chart – Created Using FXCM Marketscope

— Written by Nathalie Huynh, Currency Strategist for DailyFX.com

Contact and follow Nathalie on Twitter: @nathuynh

noimage

AUD/USD Range Vulnerable to Dovish RBA, Toughened Verbal Intervention

- Reserve Bank of Australia (RBA) to Hold Cash Rate at 2.00% for Second Straight Meeting.

- Will Governor Glenn Stevens Toughen the Verbal Intervention on the Australian Dollar?

For more updates, sign up for David’s e-mail distribution list.

Trading the News: Reserve Bank of Australia Interest Rate Decision

According to a Bloomberg News survey, 25 of the 28 economists polled forecast the Reserve Bank of Australia (RBA) to keep the cash rate on hold at 2.00%, and the wait-and-see approach may help to boost the appeal of the aussie as market participants scale back bets for lower borrowing-costs.

What’s Expected:

AUD/USD Range Vulnerable to Dovish RBA, Toughened Verbal Intervention

Click Here for the DailyFX Calendar

Why Is This Event Important:

However, RBA Governor Glenn Stevens may continue to jawbone the local currency amid the weakening outlook for global growth, and the central bank may toughen the verbal intervention on the Australian dollar in an effort to further assist with the rebalancing of the real economy.

Expectations: Bullish Argument/Scenario

Sticky price growth paired with the ongoing improvement in the labor market may encourage the RBA to preserve its current policy throughout 2015, and the fresh batch of central bank rhetoric may spur a near-term rebound in AUD/USD should Governor Stevens talk down bets for a further reduction in the cash rate.

Risk: Bearish Argument/Scenario

However, the RBA may keep the door open to further embark on its easing cycle amid the weakening demand from home and abroad, and the higher-yielding currency remains at risk of facing additional headwinds over the near to medium-term especially if the central bank head takes a more aggressive approach in talking-down the exchange rate.

Join DailyFX on Demand for Real-Time SSI Updates!

How To Trade This Event Risk(Video)

Bullish AUD Trade: RBA Endorses Neutral Stance for Remainder of 2015

  • Need green, five-minute candle following the rate decision for a potential long AUD/USD trade.
  • If market reaction favors a bullish aussie trade, buy AUD/USD with two separate position.
  • Set stop at the near-by swing low/reasonable distance from entry; look for at least 1:1 risk-to-reward.
  • Move stop to breakeven on remaining position once initial target is met, set reasonable limit.

Bearish AUD Trade: Governor Stevens Sees Scope for Rate Cut/Toughened Verbal Intervention

  • Need red, five-minute candle to consider a short AUD/USD position.
  • Carry out the same setup as the bullish aussie trade, just in reverse.

Read More:

AUD/USD Multi-Year Trendline at Risk on Weak Data, Dovish RBA

AUDUSD Ends Week and Month with Large Outside Daily Bar

Potential Price Targets For The Release

AUD/USD Daily

AUD/USD Daily Chart

Chart – Created Using FXCM Marketscope 2.0

  • AUD/USD remains at risk for a further decline as long as price & the Relative Strength Index (RSI) retains the bearish formation from back in May; will continue to favor the approach to sell-bounces especially if the RBA keeps the door open for additional rate cuts.
  • DailyFX Speculative Sentiment Index (SSI) shows the retail crowd remains net-long AUD/USD since May 15, while the ratio climbs back towards extremes as it currently sits at +2.93 with 75% of traders long.
  • Interim Resistance: 0.7570 (50% expansion) to 0.7590 (100% expansion)
  • Interim Support: 0.7233 (July low) to 0.7240 (100% expansion) 0.7268 (Jan. 2009 high)

Impact that the RBA Interest Rate decision has had on AUD during the last meeting

July 2015 Reserve Bank of Australia (RBA) Interest Rate Decision

AUD/USD Chart

The Reserve Bank of Australia (RBA) kept the cash rate target unchanged the record-low of 2.00%, Governor Glenn Stevens largely striking a neutral outlook for monetary policy. Following the rate-cut in May, it seems as though the RBA will retain a wait-and-see approach for the foreseeable future, but the central bank continued to jawbone the local currency as the board looks for a lower exchange rate. The market reaction was fairly muted as we got more of the same from the RBA, but the Australian dollar struggled to hold its ground during the European trade, with AUD/USD falling below the 0.7475 region to end the day at 0.7450.

— Written by David Song, Currency Analyst and Shuyang Ren

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David’s e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

noimage

AUD/USD Multi-Year Trendline at Risk on Weak Data, Dovish RBA

Talking Points:

- AUD/USD Eyes Multi-Year Trendline Ahead of Australia Retail Sales, RBA Meeting.

- USD/CAD Marks Fresh 2015 Highs to Start August; Canada Employment Report in Focus.

- USDOLLAR Remains Stuck in Narrow Range to Start August.

For more updates, sign up for David’s e-mail distribution list.

AUD/USD

AUD/USD Daily Chart

Chart – Created Using FXCM Marketscope 2.0

  • Despite the recent range-bound price action in AUD/USD, the pair remains at risk for a further decline as price & the Relative Strength Index (RSO) retain the bearish formation carried over from May; may threaten the long-term upward trendline from back in 2001 should the key event risk coming out of Australia dampen the appeal of the higher-yielding currency.
  • Even though the Reserve Bank of Australia (RBA) is largely expected to keep the cash rate at 2.00%, a marked slowdown in Retail Sales paired with a toughened verbal intervention may drag on the exchange rate as Governor Glenn Stevens tries to further assist with the rebalancing of the real economy.
  • Nevertheless, the DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long AUD/USD since May 15, with the ratio approaching extremes as it sits at +2.93 as 75% of traders are long.

USD/CAD

USD/CAD Daily Chart

  • USD/CAD extends the advance from the previous week to breakout of the near-term range and climbs to a fresh 2015 high of 1.3174; topside targets remain favored as long as RSI retains the bullish momentum and pushes back into overbought territory.
  • Despite market expectations for a rebound in Canada Employment, fears of a double-dip recession may encourage the Bank of Canada (BoC) to further endorse a dovish outlook for monetary policy as the growth rate contracted for the fifth consecutive month in May.
  • Will favor the topside targets as long as price & RSI maintain the bullish trend, with the next region of interest coming in around 1.3210 (78.6% expansion) following by 1.3280 (78.6% expansion).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Euro “Stutter Step”?

The Weekly Volume Report: USD/CAD Turnover Supports Broader Trend

USDOLLAR(Ticker: USDollar):

AUD/USD Multi-Year Trendline at Risk on Weak Data, Dovish RBAUSDOLLAR Daily Chart

Chart – Created Using FXCM Marketscope 2.0

  • Bullish sentiment surrounding the Dow Jones-FXCM U.S. Dollar may gather pace in August as the fresh data prints coming out of the U.S. economy points to sticky price growth along with prospects for a stronger recovery in the second-half of 2015.
  • Even though the U.S. Non-Farm Payrolls (NFP) report highlights the biggest event risk for the greenback, the ADP Employment figure along with the ISM surveys may produce increased volatility in the exchange rate as there’s only so much time left ahead of the Federal Open Market Committee’s (FOMC) September 17 interest rate decision.
  • Will continue to look for range-bound prices until we get a closing price below the Fibonacci overlap around 11,951 (38.2% expansion) to 11,965 (23.6% retracement) or above 12,049 (78.6% retracement).

Join DailyFX on Demand for Real-Time SSI Updates!

AUD/USD Multi-Year Trendline at Risk on Weak Data, Dovish RBA

— Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David’s e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

noimage

US Dollar Set for Big Moves – Here are the Strategies We’re Watching

- Forex volatility prices rise sharply ahead of key US Nonfarm Payrolls report

- Strong moves in commodity-linked AUD, NZD, and CAD keeps focus on Breakout2 trading system

- Potential for strong trend moves in Euro, Yen moves points to Momentum2 system

The US Dollar is likely to see strong moves in the days ahead—particularly versus the Australian, Canadian, and New Zealand Dollars. We like these trading strategies.

Traders have kept the US currency in a tight trading range versus the Euro and other major counterparts, but that may change on a big week of economic event risk. And indeed volatility prices have risen considerably ahead of Friday’s US Nonfarm Payrolls report.

The US Dollar trades near important highs as traders are pricing in a roughly 50 percent chance that the US Federal Reserve will raise interest rates in September. Yet any major disappointments in Friday’s labor data could force a significant repricing and USD sell-off.

Forex Volatility Prices Rise Ahead of Key Economic Data

US Dollar Set for Big Moves - Here are the Strategies We're Watching

Data source: Bloomberg, DailyFX Calculations

High volatility risks—especially in Commodity Bloc pairs—keep our trading focus on the volatility-friendly Breakout2 strategy, while the potential for trend shifts in other USD pairs suggests in certain commodity-linked USD pairs, while the potential for trend shifts in the Euro/US Dollar and Dollar/Japanese Yen pairs suggests the Momentum2 system could do well.

See the table below for full detail on market conditions and preferred trading strategies.

DailyFX Individual Currency Pair Conditions and Trading Strategy Bias

US Dollar Set for Big Moves - Here are the Strategies We're Watching

Understand the Breakout2 Trading System via our previous article

Auto trade the trend reversal-trading Momentum2system via our previous article.

Trade with strong trends via our Momentum1 Trading System

Use our counter-trend Range2 Trading system

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

Definitions

Volatility Percentile – The higher the number, the more likely we are to see strong movements in price. This number tells us where current implied volatility levels stand in relation to the past 90 days of trading. We have found that implied volatilities tend to remain very high or very low for extended periods of time. As such, it is helpful to know where the current implied volatility level stands in relation to its medium-term range.

Trend – This indicator measures trend intensity by telling us where price stands in relation to its 90 trading-day range. A very low number tells us that price is currently at or near 90-day lows, while a higher number tells us that we are near the highs. A value at or near 50 percent tells us that we are at the middle of the currency pair’s 90-day range.

Range High – 90-day closing high.

Range Low – 90-day closing low.

Last – Current market price.

Bias – Based on the above criteria, we assign the more likely profitable strategy for any given currency pair. A highly volatile currency pair (Volatility Percentile very high) suggests that we should look to use Breakout strategies. More moderate volatility levels and strong Trend values make Momentum trades more attractive, while the lowest Vol Percentile and Trend indicator figures make Range Trading the more attractive strategy.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES IS MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION.

OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. The FXCM group will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance contained in the trading signals, or in any accompanying chart analyses.

noimage

Dollar Demand Strong at Start of Critical Economic Data Week

Talking Points:

- USDCAD jumps to fresh yearly highs above C$1.3150.

- USDOLLAR retains range/flag, eyes move above 12063.

- See the DailyFX economic calendar for Monday, August 3, 2015.

See the above video for technical considerations in EURUSD, USDJPY, USDCAD, AUDUSD, and the USDOLLAR Index.

Read more: Euro Staying Afloat amid Short Position, Carry Trade Unwind

— Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form