Daily Technical Analysis FXOpen

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MOST FREQUENTLY OCCURRED PRICE PATTERNS IN FOREX TRADING

If you are a long term trader, then you should have a close eye on various price patterns that occur frequently at various timeframes. These patterns may yield huge and easy return with minimum risk. Let us have a look at some famous price patterns.

Head & Shoulder (H&S)

H&S is one of the most frequently occurred price patterns. It consists of four main parts that are:

*Left Shoulder
*Head
*Right Shoulder
*Neckline

The most important component is the neckline. Neckline is the lowest point between right and left shoulder as shown in following chart.

Traders tend to open sell positions when neckline is broken. Once neckline is broken, it then acts as critical resistance level. H&S pattern can also be in inverse shape as shown in following chart.

Read more at https://blog.fxopen.com/most-frequently-occurred-price-patterns-in-forex-trading/

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USD/CAD Technical Analysis

The US Dollar rallied sharply from the 1.3042 low against the Canadian Dollar. The USD/CAD pair traded above the 1.3100 and 1.3180 resistance levels to move into a positive zone.

However, the pair failed to surpass the 1.3200-1.3210 resistance and traded as high as 1.3207. Recently, it started a downside correction below the 1.3200 and 1.3180 levels.

There was a break above the 1.3150 support level and the 50 hourly simple moving average. Additionally, the pair traded below the 23.6% Fib retracement level of the last wave from the 1.3042 swing low to 1.3207 high.

On the downside, there is a strong support waiting near the 1.3125 level. It coincided with the 50% Fib retracement level of the last wave from the 1.3042 swing low to 1.3207 high.


Read more at https://blog.fxopen.com/gbp-usd-could-continue-higher-usd-cad-is-correcting-lower/

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THE WINNER’S TRADING HORROR STORY

It was Thursday and it was late. It was raining and thunder rolled over the rooftops.

I was looking through financial news and thought about calling it a night.

I felt chills running down my spine when I heard the footsteps approaching and the raspy voice whispered straight into my ear: “You will open 100 lots EURCAD sell position if you want to live…”

With trembling hands I opened the FXOpen MT4 platform. I didn’t have enough money to open this kind of volume, even if I closed my current positions. I wondered if it was just a dream…

But then I saw the putrefying hand on my shoulder – “What are you waiting for?”

I called FXOpen live trading support with the request to increase my leverage. The support employee informed me about the risks of higher leverage and asked me if I still wanted to set it at 1:500. Little did he know that the only risk I was worried about was the risk to annoy my zombie visitor.

I hung up, closed my existing positions and quickly opened EURCAD 100 lots, as my new friend requested.

“Good boy” – I heard laughter behind my back.

I looked at the chart and saw that the market started quickly moving in my favor. 10% profit, 20%, 50%.

“Now cloooooose” – and I obeyed the order.

I made $666 666 in 3 minutes.

Maybe the zombie was my friend after all?

“Now you will withdraw everything, convert it to gold coins and bring it to me!!!”

I wondered where it was.

“Central cemetery, 3d alley, 13th grave – you will see a sepulture with the name High Leverage. Open the grave and pour the coins inside… And don’t think about tricking me!!!”



The story is written by Mathias from Sweden, account number 714216. We congratulate the winner and will credit 100 USD to his FXOpen trading account.


Read more at https://blog.fxopen.com/the-winners-trading-horror-story/

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USD/JPY Technical Analysis


The US Dollar remained in a positive zone above the 108.00 and 108.20 support levels against the Japanese Yen. As a result, the USD/JPY pair climbed above the 108.50 resistance area.

The pair even broke the 109.00 resistance area and the 50 hourly simple moving average. However, the pair seems to be facing a strong resistance near the 109.25 area.

It is currently correcting lower below 109.10. More importantly, the pair is struggling to stay above a major bullish trend line with support near 109.00 on the hourly chart.

If there is a downside break, the pair could test the 108.70 support are and the 50 hourly simple moving average. It also coincides with the 38.2% Fib retracement level of the upward move from the 107.88 low to 109.23 high.


Read more at https://blog.fxopen.com/eur-usd-dives-again-usd-jpy-breaking-down/

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XRP/USD analysis


The price of Ripple has increased from yesterday’s low at $0.2903 by 5.55% as it came up to $0.3064 at its highest point today. Currently, the price is being traded slightly below the $0.3 mark but the price is in an upward trajectory overall.

On the hourly chart, you can see that the price made a breakout from the triangle which formed after the second attempt for the price to maintain above the significant horizontal level at $0.29405 failed. As the price has shown signs of bullishness after it managed to hold above 0 Fib level the seen increase could be the first sign that the price is to hold above the horizontal support but we could be seeing another corrective increase that is to retest the seller’s territory above.

Read more at https://blog.fxopen.com/btc-usd-and-xrp-usd-moving-sideways/

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Oil Price Technical Analysis

This week, there was a steady rise in crude oil price above the $55.00 resistance area against the US Dollar. The price even broke the $56.20 resistance zone to move into a positive zone.

Finally, the price settled above $56.50 and the 50 hourly simple moving average. However, the bulls faced a strong resistance near the $57.80 and $58.00 levels. A high was formed near $57.81 and the price started a downside correction.

There was a break below the $57.50 support area. Moreover, the price traded below the 23.6% Fib retracement level of the recent wave from the $56.12 low to $57.81 high.

At the moment, the price is trading near the $57.00 support area and the 50 hourly SMA. Besides, there is a key bullish trend line forming with support near $56.80 on the hourly chart of XTI/USD.


Read more at https://blog.fxopen.com/gold-could-correct-higher-while-crude-oil-price-might-decline/

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EXPLAINING THE ELEMENTS OF A TRADING ACCOUNT

Regardless of the trading platform used, some elements in a trading account always appear. We’re not talking about swaps, spreads, and commissions, that vary from broker to broker.

Instead, this article aims at explaining the importance of balance, equity, and margin in a retail trading account. Because human nature plays tricks on traders, people always tend to focus on what’s not realistic in a trading account. And that is the balance.

The Balance of a Trading Account

The balance is where all the funds go when the account gets funded for the first time. Upon account’s opening and documents’ verification, traders that decided for a live account must fund it.

All the funds appear in the balance. At this point, the equity equals the funds in the balance, and all the amount is available as free margin.

Everything changes by the time traders open a position. Regardless of the number of positions opened, and the size, the balance remains unchanged.

That is, unchanged until the trader takes a position in the market. Long or short, any position on any asset will leave the balance unchanged.

Unless or until the trade ends, the balance won’t change. When the trade reaches the take profit, stop-loss, or the trader decides merely to close it, the balance changes with the appropriate outcome: the win or loss, the commission paid (if any), the positive or negative swap (if any).

For this reason, the balance is a misleading element of a trading account. Here’s why.

The trader may have multiple open positions on the account. And, as it is often the case, many of them to go against the desired direction.

In other words, the more the equity shrinks, the more red flags the trader should see. However, if the focus is on what the balance shows, the trader ends up keeping losing positions for too long. Sometimes, that is enough for a margin call.



Read more at https://blog.fxopen.com/explaining-the-elements-of-a-trading-account/

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EUR/GBP Technical Analysis


The Euro mostly traded in a broad range below the 0.8650 resistance area against the British Pound. The EUR/GBP pair broke many supports near the 0.8620, but it remained bid above the 0.8600 area.

The last swing low was formed near 0.8597 and the pair is currently correcting higher. There was a break above the 23.6% Fib retracement level of the recent decline from the 0.8657 high to 0.8597 low.

At the moment, the pair is trading near the 0.8620 resistance and the 50 hourly simple moving average. An immediate resistance area is near the 0.8630 level. It coincides with the 50% Fib retracement level of the recent decline from the 0.8657 high to 0.8597 low.

The main resistance is near the 0.8650 level, where the bulls are likely to face a strong selling interest. If there is an upside break, the pair could climb towards 0.8680 or 0.8700.

On the downside, an initial support is near the 0.8600 level. Moreover, there is a connecting bullish trend line forming with support near 0.8605 on the hourly chart.

If there is a downside break below the trend line, the pair could test the 0.8585 level. Any further losses may perhaps push EUR/GBP towards the 0.8550 level.

Read more at https://blog.fxopen.com/gbp-usd-and-eur-gbp-british-pound-could-decline-further/

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XRP/USD analysis


From last Thursday when the price of Ripple reached its high at $0.31222 measured to the current level at $0.2703 we have seen a decrease of 13.58. The price is still in a decline and is getting close to the vicinity of the prior low and the horizontal support level at $0.26617 so we could see interaction with the level before an upturn.

On the hourly chart, we can see that the price is in a decline after another ABC correction to the upside ended but the wave structure is impinging impulsiveness. From the 26th of October when the price was sitting at its lowest in while we have seen a five-wave increase inside an ascending channel after which two corrective structures developed. This means that the current downfall could be the 3rd structure out of the higher degree correction.

If this is true, then after the decline ends we are to see further uptrend continuation and as the price is approaching the significant horizontal support we are soon going to get the needed validation.


Read more at https://blog.fxopen.com/btc-and-xrp-still-in-a-decline/

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USD/CHF Technical Analysis


The US Dollar made a couple of attempts to clear the 0.9975 and 0.9980 resistance levels against the Swiss franc. However, the USD/CHF pair failed to continue higher and started a fresh decline below 0.9965.

The pair broke a few key supports near the 0.9950 level. Besides, there was a break below a key bullish trend line with support near 0.9940 on the hourly chart.

The pair is now trading well below the 0.9940 level and the 50 hourly simple moving average. It even spiked below 0.9920 and traded as low as 0.9917 recently. At the moment, it is consolidating, with an immediate resistance near the 0.9928 level.

It represents the 23.6% Fib retracement level of the recent decline from the 0.9964 high to 0.9917 low. The main resistance on the upside is near the 0.9940 level and the 50 hourly simple moving average.


Read more at https://blog.fxopen.com/eur-usd-and-usd-chf-are-showing-bearish-signs/

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