News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • The docket thins out over the coming week, but there are a few serious market highlights that can make for some interesting opportunities in the week ahead. $GBPUSD has the technical chops and fundamental confluence (US CPI, UK GDP, etc) https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/BMUQ0xVOge
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/nBfJcptUDK
  • Dogecoin continues to trade higher with explosive energy, attesting to the cryptocurrency's new clout. Meanwhile, Bitcoin and Ethereum sink. Get your market update from @FxWestwater here:https://t.co/ohw714KqB2 https://t.co/EWxKoQykv1
  • Natural gas prices moved higher, capturing a long-term trendline that could support the heating commodity's price in the coming weeks as colder temps support fundamental side. Get your market update from @FxWestwater here:https://t.co/tGUDJE9hn0 https://t.co/nROsrJa1sv
  • The Euro may fall against the US Dollar amid a historically strong month for the Greenback and relative bond yield spreads. EUR/USD appears to be eyeing bearish technical warning signs. Get your $EURUSD market update from @ddubrovskyFX here:https://t.co/njTDk8Ehoi https://t.co/w4II63utz1
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. Get your market update from @ddubrovskyFX here:https://t.co/6Nvvmz8h6d https://t.co/TYsfOXHrro
  • (Weekly Fundamental) Australian Dollar Outlook: AUD/USD May Rise on Dovish Fed Speak After Huge NFP Miss #AUD $AUDUSD https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/05/07/Australian-Dollar-Outlook-AUDUSD-May-Rise-on-Dovish-Fed-Speak-After-Huge-NFP-Miss.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/L9pERwjTqh
  • Bitcoin is struggling to extend April’s bounce while Ethereum and Litecoin are exhibiting signs of momentum exhaustion. What are key technical levels to watch for ahead? Find out from @ddubrovskyFX here:https://t.co/PnZId4xOh2 https://t.co/ZTYoxdBxLl
  • The Indian Rupee has been rising despite a surge in local Covid cases, owing to rising yields amid a temporary flood of US Dollars into the banking system. INR remains at risk, eyeing CPI data. Get your market update from @ddubrovskyFX here:https://t.co/6r7hahVtx4 https://t.co/a0z46Q0Mn4
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tnF1RME8gJ
Look Before You Jump

Look Before You Jump

Jamie Saettele, CMT, CMT, Senior Technical Strategist,

Talking Points

-Plan the trade and trade the plan

-Do not chase price

-Wanting to get into a trade is better than wanting to get out of one

19th century cotton operator Dickson Watts said (among other things) “look before you jump, not when you jump”. In other words, exercise caution in analysis but do not hesitate in execution. Most, if not all, of my mistakes stem from either not being methodical enough in my analysis or hesitating in execution.

I employ a technical approach. Price patterns and/or ‘technical events’ at important price levels (this is a subject for a different article) ‘alert’ me to an opportunity. Whether or not the opportunity becomes a trade is based on several factors, including risk parameters and sentiment (is it a ‘popular’ idea or out of favor…better if the latter). I don’t interpret news events but I am not blind. News releases move markets. I have no issue taking a trade in front of news if the trade is ‘there’, sometimes it moves in your favor and sometimes it doesn’t. There are times when one can take advantage by fading the initial price spike (this needs to be part of a plan that is worked out beforehand). It’s usually not a good idea to chase a news spike though. I did just that on August 7th in GBPUSD.

My analysis of the situation was not an issue. GBPUSD had broken down from a 4 year triangle pattern in February. A lower top formed in June and the advance off of the July low topped at June congestion (rectangle). The market was back for more in early August and I had identified a 2 day topping pattern (circle) around trendline resistance. I failed to act and waited for the BoE quarterly inflation report, after which Carney was expected to speak. The initial reaction was lower and I chased, worrying that I was going to miss a great trade. The trade stopped out in less than hour at 1.5395.

The postmortem reveals that I did indeed look before I jumped (analysis was fluid), but I also looked when I jumped (hesitated in execution). I would have been stopped out either way but the loss would have been half of what it was had I executed when the 2 day topping pattern completed at 1.5320. Instead, I panicked on the initial move down and got short into 1.5250. The experience reinforces another trading truth: wishing you were in a trade is a better position than wishing you were out of a trade.

Written by Jamie Saettele, Senior Technical Strategist for Dailyfx.com

Contact and follow Jamie via Twitter: http://www.twitter.com/JamieSaettele

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES