USDJPY Buying Continues

GTrigger: Buying

Target: 112.14

Duration: 1 Month

Trigger: Buying

Entry:   110.05

Target: 110.60

Stop Loss: 109.70

Duration: 1 Day

Bullish Euro after 38.20% breach

EURUSD broke 1.1460 levels, where congestion's seen previously. Now, current spot is playing above 38.20% retracement. It will try to test the line of 38.20% for September's low and will easily climb to 61.80%.

OB: 1.1740

TP:  1.2595

SL:  1.1700

Target Range: 2 weeks

What's your EURUSD Trade Plan? Let us know! Happy Trading!

 

ForexCebu.Com has been attacked!

Yes, we were recently and badly attacked by someone who really took time and effort to bring our website down. Apparently, we have decided to keep it suspended and flood updates in our blogsite.

As for the information, the clients have nothing to worry about, they are all safe in our broker's highly encrypted servers. Pepperstone being our long term trading partner as broker made sure all data stored from forexcebu are secured and untouched by any other party who are not duly authorized. With this, we hope to stop the alarm. We're good and so much on track!

Happy trading!

Latest of USDJPY

USDJPY's interesting stops are shown below. Keep following us for more market updates.

TP short at 111.00 psychological support that also hits 61.80% retracement. Happy Trading!

EURUSD Reversal after the French Election

LONDON (Reuters) - The euro retreated on Monday from highs hit on centrist Emmanuel Macron's victory in France's presidential election, with investors taking profit on a roughly 3 percent gain for the currency since he won the first round two weeks ago. 

Macron's resounding defeat of nationalist Marine Le Pen has relieved investors who had feared another populist upheaval after Britain's vote to exit the European Union and Donald Trump's election as U.S. president last year.

But after opinion polls had shown Macron consistently around 20 percentage points or more in front, his crushing victory on Sunday was widely expected.

"Clearly it (the euro) is off the overnight highs and I think this is purely because the win that we had in France was so well priced in," said Jane Foley, currency strategist with Rabobank in London. 

In early Asian trading the euro rose as high as $1.1024 , its highest since Nov. 9. It also jumped to a one-year high of 124.58 yen (EURJPY=) against its Japanese counterpart, and a five-month high of 1.0886 Swiss franc (EURCHF=R).

By the European morning, it had fallen back 0.4 percent to $1.0953 against the dollar, and 0.6 percent to 123.26 yen.

The removal of the political risk investors had associated with Le Pen - who had promised to take France out of the euro - leaves them refocusing on economic fundamentals and the relative pace of monetary policy normalization in Europe and the United States.

Friday's U.S. job numbers were solid and yield spreads continue to back the dollar over the euro. But traders are also steadily more confident about the prospect of the European Central Bank at some point moving away from its bond-buying stimulus program.

"Over the next couple of months, the market will turn its attention back to the economy, back to the debate about whether the European Central Bank can lift some of its accommodation perhaps early next year," Foley said.

The dollar was slightly lower on the day at 112.56 yen , after jumping to a seven-week high of 113.14 yen in overnight trade.

The dollar index, which tracks the U.S. currency against a basket of six major rivals, added 0.2 percent to 98.812 (DXY), after dipping as low as 98.543 earlier, its lowest since November.

The French election eclipsed Friday's U.S. employment data, which showed nonfarm payrolls rose by 211,000 in April. The unemployment rate fell to 4.4 percent, near a 10-year low and well below the most recent Federal Reserve median forecast for full employment.

But job growth in March was revised downward to 79,000 from 98,000, and the labor force participation rate dipped slightly to 62.9 percent from 63 percent. Overall, the figures did not appreciably alter market expectations that the U.S. Federal Reserve is on track to raise interest rates next month, with analysts citing a slack in wage growth.

"The gap between labor market development and wage development is still gaping and is only being reduced at a snail’s pace. Market participants who had expected that an unemployment rate that was long term below 'normal' levels (i.e. a labor market running hot) would finally fuel wage inflation are slowly running out of patience," Commerzbank (DE:CBKG) strategists wrote in a note. 

"If this connection does not soon start to work a good labor market report will not support the dollar. "

U.S. retail sales and core inflation data will be released on Friday this week, and they could add to evidence backing expectations of a Fed hike.

TECHNICAL ANALYSIS

Stop and reversal signal seen at 1.1 level and it seems like it's now about to fill the gap from previous days' sudden burst leaving a gap between 1.07 and 1.08.

The Forex Figures

Today we are going to talk about the basic things you need to know before you start hitting your platform to trade.

They're the BIG FIGURE, SPREAD, HIGH, LOW and the DEALING RATES. 

Below figure shows it all:

Currency Pair: NZDUSD or simply read as New Zealand Dollar vs US Dollar. The rate 0.69993 means it takes .69993 New Zealand Dollar to have 1 USD. Or .700018 means .700018 New Zealand Dollar to have 1USD.

Big Figure, Spread and Dealing Rates

So what's the big figure of the NZDUSD? The big figure is the stem of the dealing rates. The figure above shows two rates the .69993 and .70018 where the stems of each rate are .69 and .70

Why is there a gap in the given rates? Just like your favorite coffee the price in a supermarket (buying) is not the same as the price in the Sari-Sari Store (selling). Meaning if you buy something it is but natural to sell it higher to make money. Now, this gap is what we call spread. In our figure spread should be computed as:

Hence, below should be read as: 

Buying: 0.70018

Selling: 0.69993

Or in short it can be read as 99-01(font is intentionally meant to be bigger than the stems); the two rates given is now the dealing rates.

High and Low

High means the highest price NZDUSD reached in a given market trading day; while Low is the lowest price the currency reached in a given market trading day.

Always remember, the variance between your high and low matters a lot in any given day. On an average a certain currency, no matter how volatile can only move as much as 100-150 pips. If it hits the average daily pip variance it will either congest or retrace.

Learn more about congestions and retracements on our next sessions. Thank you for reading. If you want instant update to our new posts, please subscribe to this blog. ➡️➡️➡️

Why do CURRENCY values change?

So why do currency values change?

There are three apparent reasons for this.

1. Currencies react to political and economic news. The #Brexit issue is the most recent political mania. Such issue is affecting the currencies specifically pound. In my recent blogpost I showed the immediate effect of votation. Please scroll down to the previous posts to check it.

2. Speculators drive the market such as the technical analysts who takes advantage of either bearish or bullish market.

3. Of course there's the international business flows. The law of supply and demand affects the currency fluctuation. For instance, oil drives the market fluctuation.