USD/JPY Clears 102.00 As Harami Suggests Further Gains
USD/JPY: Prices Push Past 102.00 Following Harami Pattern
An examination of intraday price action on the chart below highlights
the hesitation from the bulls near 102.00. However following a push past
the psychologically-significant level of resistance USD/JPY is eying
the 102.70 mark.
USD/JPY: Hammer Foreshadowed Recovery
USD/JPY Showing Forex Trading Upside Momentum – May 13, 2014
On its 4-hour time frame, USD/JPY is showing enough forex trading upside
momentum after bouncing off the bottom of the rising channel. The pair
has formed short-term double bottoms and is moving on to making a larger
set on the same forex trading time frame.
With that, USD/JPY's next rally resistance appears to be located at the
103.00 major psychological level, which might also serve as the neckline
for the double bottom on the 4-hour chart. A break above this area of
interest could mean a move up to the 104.00 major psychological
resistance, which is at the top of the ascending channel.
USD/JPY Forex Trading Outlook
The US economy is set to print its retail sales data in today's New York
trading session. Market watchers are expecting to see a 0.6% gain in
headline consumer spending and a 0.5% increase in core retail sales,
both slightly slower gains compared to the previous month's figures.
Take note though that the US economy has shown stronger than expected
jobs gains in April, which could increase the odds of seeing higher than
expected increases in retail sales. As for Japan, there have been a few
weak spots in the economy and the recently implemented sales tax hike
could weigh on growth later on.
The Fed is on track with its taper plan, eventually looking to hike
interest rates once clearer signs of growth are seen. The BOJ, on the
other hand, is more inclined to ease given their ongoing battle with
deflation and potentially weak spending. With that, the path of least
resistance for this forex trading pair is to the upside, in line with
the trend channel that is holding.
2014-05-13 12:30 GMT (or 14:30 MQ MT5 time) | [USD - Retail Sales]
if actual > forecast = good for currency (for USD in our case)
USD - Retail Sales = Change in the total value of sales at the retail level
U.S. Retail Sales Rise Less Than Expected In April
After reporting a sharp increase in U.S. retail sales in the
previous month, the Commerce Department released a report on Tuesday
showing that retail sales inched up by less than expected in the month
The report said retail sales edged up by 0.1 percent in April following an upwardly revised 1.5 percent jump in March.
had expected sales to rise by about 0.4 percent compared to the 1.1
percent growth originally reported for the previous month.
an increase in sales by motor vehicle and parts dealers, retail sales
came in unchanged in April compared to a 1.0 percent increase in March.
Ex-auto sales had been expected to climb by 0.6 percent.
EUR/USD – Euro Weakens As German Economic Sentiment Slips
EUR/USD has softened on Tuesday, as the pair has finally broken out
from its rangebound trading. In the European session, the pair has
dipped close to the 1.37 line. The euro has reacted negatively to a
dismal German ZEW Economic Sentiment, as the key indicator dropped to a
16-month low. Eurozone Economic Sentiment followed suit with a soft
reading in April. In the US, today’s highlights are Core Retail Sales
and Retail Sales. Strong numbers would point to increased consumer
spending and could lift the dollar further against the euro.
The first Eurozone releases of the week were anything but impressive.
German ZEW Economic Sentiment, a key indicator, weakened badly in
April, dropping to 33.1 points. This was well off the estimate of 41.3
and its worst showing since December 2012. The Eurozone release followed
suit, dropping to 55.2 points, compared to an estimate of 63.5 points.
These indicators are based on a survey of institutional investors and
analysts, and the weak numbers point to increasing concern about the
Eurozone and German economies.
The ECB held its policy meeting last Thursday, and the euro took
traders and investors on a wild ride in both directions. Mario Draghi
took note of worrying inflation indicators, saying that food and energy
prices, the strong euro and weak domestic demand were all factors in
weak inflation which has engulfed the Eurozone. He then surprised the
markets by adding that the Bank would be comfortable taking action in
June, after re-examining inflation and growth forecasts in June. This is
the clearest sign in months that the ECB is prepared to take action,
and a reaction from the market was quick to follow, with the euro
suffering sharp losses after coming within a few pips of the key 1.40
line. Draghi added that the ECB would continue to monitor exchange
rates. Many analysts are of the view that the "line in the sand" for the
ECB is the 1.40 level, and if the euro rebounds and moves above this
line, it's more than likely that the ECB will take action to reign in
the high-flying currency.
There were no surprises from Federal Reserve Chair Janet Yellen last
week, who gave a cautious thumbs-up to the economic recovery in
testimony before Congress. Yellen said that the US economy has improved,
but noted two sore spots - the employment market and inflation which
remains below the Fed's target of 2%. Yellen stated that she therefore
expects that low interest rate levels will continue to stay low for a
"considerable time". Yellen has stated previously that slack remains in
the economy, and the Fed is expected to proceed carefully with future
tapers to its QE scheme. Since December, the Fed has trimmed the
asset-purchase program by almost half, cutting it to $45 billion each
Further levels in both directions:
Forum on trading, automated trading systems and testing trading strategies
What is PAMM?
angevoyageur, 2013.10.01 23:06
The Percent Allocation Management Module (PAMM) is a technical solution
provided by brokers and allowing clients to have their accounts managed
by a trader appointed by them on the basis of a limited trading power of
PAMM solution allows the trader on one trading platform to manage
simultaneously unlimited quantity of managed accounts.
Depending on the size of the deposit each managed account has its own
ratio in PAMM.
Trader's activity results (trades, profit and loss) are allocated
between managed accounts according to the ratio.
Example of trade allocation:
Lets assume that there are 3 managed accounts under trader's management:
USD account with deposit of $ 100.000 and ratio 9,3%;
EUR account with deposit of € 400.000 and ratio 49,5%;
GBP account with deposit of £ 300.000 and ratio 41,2%;
Depending on funded amounts different ratios are
applied for managed account (for ratio calculation all amounts are
converted in USD equivalent based on market rate).
In case if, for example, Trader/Money Manager
decides to BUY 10 mio EURUSD,
PAMM allocates the order between managed accounts according to its
Each managed account has its own part of position and corresponding
Profit & Loss.
In current example the first managed account will get position LONG
930.000 EUR/USD, the second - LONG 4.950.000 EUR/USD and the third -
LONG 4.120.000 EUR/USD. Resulting profit & loss will be
automatically calculated for each account depending on market prices.
Example of trade allocation:
Trading the News: Bank of England Inflation Report (based on dailyfx article)
The Bank of England’s (BoE) Inflation Report may generate fresh highs in
the GBP/USD should the central bank show a greater willingness to
normalize monetary policy sooner rather than later.
Why Is This Event Important:
The fresh developments coming out of BoE may boost interest rate
expectations should the central bank raise its growth and inflation
forecast, and Governor Mark Carney may do little to halt the ongoing
appreciation in the British Pound as it helps the Monetary Policy
Committee (MPC) to deliver price stability in the U.K.
Expectations: Bullish Argument/Scenario
Sticky price growth paired with the ongoing improvement in the U.K.
labor market may prompt the BoE to adopt a more hawkish tone for
monetary policy, and the GBP/USD may continue to extend the advance from
earlier this year should we see a growing number of central bank
officials show a greater willingness to raise the benchmark interest
rate later this year.
Risk: Bearish Argument/Scenario
February 2014 Bank of England Inflation Report
The BoE inflation report is likely to spur volatility in GBP crosses,
especially in the context of the current situation with rate
expectations. At the last release, Carney said that the BoE sees further
rate increases as gradual and limited. At the release we saw the Pound
rally as comments indicated that the central bank saw rate increases,
although gradual, sooner rather than later. Since then we have seen the
appreciating Pound help cap higher inflation and any further indication
that expectations have been lowered may weigh negatively on GBP crosses.
steadybucks, 2014.05.14 07:02
Read this small article about it : MQL5.community Payment System
NZDUSD Technical Analysis (adapted from dailyfx article)