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▪️Will USD Reverse After CPI?
⏰The US CPI will come out on Tuesday, April 12, at 15:30 MT (GMT+3).
🔹Consumer prices account for most of the overall inflation. Inflation is important to the currency valuation because rising prices lead to higher interest rates.
🔹Last time, the result met the expectations, and the US dollar index increased by 1.25% within two days.
🔎Search : #DXY #USD #CPI
🆔 @dailyfx
▪️Will USD Reverse After CPI?
⏰The US CPI will come out on Tuesday, April 12, at 15:30 MT (GMT+3).
🔹Consumer prices account for most of the overall inflation. Inflation is important to the currency valuation because rising prices lead to higher interest rates.
🔹Last time, the result met the expectations, and the US dollar index increased by 1.25% within two days.
🔎Search : #DXY #USD #CPI
🆔 @dailyfx
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🔗How to trade on US CPI?
🔸If the US CPI is greater than forecasted, the USD will likely strengthen against other currencies.
📉If the US CPI is lower than forecasted, the USD will likely weaken against other currencies.
📊Instruments to trade: EURUSD, USDCAD, GBPUSD.
📌Chart of DXY Dollar Index with 100-Day SMA and Consecutive Candle Count (Daily)
🔎Search : #DXY #USD #CPI
🆔 @dailyfx
🔗How to trade on US CPI?
🔸If the US CPI is greater than forecasted, the USD will likely strengthen against other currencies.
📉If the US CPI is lower than forecasted, the USD will likely weaken against other currencies.
📊Instruments to trade: EURUSD, USDCAD, GBPUSD.
📌Chart of DXY Dollar Index with 100-Day SMA and Consecutive Candle Count (Daily)
🔎Search : #DXY #USD #CPI
🆔 @dailyfx
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▪️What’s New About Canadian CPI?
⏰Statistics Canada will release Consumer Price Index (CPI) on Wednesday, April 20 at 15:30 MT time.
🔹It’s a monthly release, usually published on the third Wednesday of the next month. CPI is the most important inflation-related release due to its earliness and wide coverage. Moreover, it’s one of the few numbers in the calendar that excludes seasonality.
🔹How will it move CAD?
Canada is struggling with inflation, just like other leading countries. Now the inflation is at 5.7%, and the economists suppose it’s not the peak yet. Due to the Russian-Ukrainian conflict, Canada is experiencing obstacles with the supply of goods and commodities. As a result, in February of 2022, the consumers paid higher gasoline and groceries prices than the same month a year earlier. Housing costs continue to rise, increasing at the fastest annual rate since August 1983.
🔎Search : #CAD #CPI
🆔 @dailyfx
▪️What’s New About Canadian CPI?
⏰Statistics Canada will release Consumer Price Index (CPI) on Wednesday, April 20 at 15:30 MT time.
🔹It’s a monthly release, usually published on the third Wednesday of the next month. CPI is the most important inflation-related release due to its earliness and wide coverage. Moreover, it’s one of the few numbers in the calendar that excludes seasonality.
🔹How will it move CAD?
Canada is struggling with inflation, just like other leading countries. Now the inflation is at 5.7%, and the economists suppose it’s not the peak yet. Due to the Russian-Ukrainian conflict, Canada is experiencing obstacles with the supply of goods and commodities. As a result, in February of 2022, the consumers paid higher gasoline and groceries prices than the same month a year earlier. Housing costs continue to rise, increasing at the fastest annual rate since August 1983.
🔎Search : #CAD #CPI
🆔 @dailyfx
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🔗The previous month’s result was slightly higher than expected, 1.0% vs. 0.9%. Due to the high forecasts, the CAD has been steadily growing since March 8. The sustainable growth of the currency means it is not affected much by releases.
🔸How to trade on CAD CPI release?
Even if the previous results might not move the CAD crucially, anything could happen.
📈If the CPI is high, the CAD will rise.
📉If the CPI is depressive, the CAD will fall.
📊Instruments to trade: USDCAD, EURCAD, CADJPY
🔎Search : #CAD #CPI
🆔 @dailyfx
🔗The previous month’s result was slightly higher than expected, 1.0% vs. 0.9%. Due to the high forecasts, the CAD has been steadily growing since March 8. The sustainable growth of the currency means it is not affected much by releases.
🔸How to trade on CAD CPI release?
Even if the previous results might not move the CAD crucially, anything could happen.
📈If the CPI is high, the CAD will rise.
📉If the CPI is depressive, the CAD will fall.
📊Instruments to trade: USDCAD, EURCAD, CADJPY
🔎Search : #CAD #CPI
🆔 @dailyfx
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▪️Will CPI push USD higher?
⏰The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
🔹The index accounts for most of the overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates.
🔹Last time, the CPI met the expectations but beat the previous month's numbers. As a result, the EURUSD lost more than 500 points. If you traded one lot, you could have earned more than $500.
🔎Search : #USD #CPI #DXY
🆔 @dailyfx
▪️Will CPI push USD higher?
⏰The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
🔹The index accounts for most of the overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates.
🔹Last time, the CPI met the expectations but beat the previous month's numbers. As a result, the EURUSD lost more than 500 points. If you traded one lot, you could have earned more than $500.
🔎Search : #USD #CPI #DXY
🆔 @dailyfx
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▪️Bank of England Tries to Save the Pound
⏰The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
🔹Traders usually scrutinize his public engagements to get clues regarding future monetary policy. As the central bank controls short-term interest rates, its head has more influence over the nation’s currency value than any other person.
🔹Why is it important?
Volatility is a common thing during Andrew Bailey’s speeches. Although the last meeting in May didn’t bring volatility to the GBPUSD pair, it prepared the market for the next day’s PMI release. The governor pointed out that BOE is ready to raise the rates if the economy suffers. Thus, lower-than-expected PMI data (negative for the currency) crashed the pound against the USD by 1170 points. A one-lot trade would have brought you $1170.
🔎Search : #GBP #BOE
🆔 @dailyfx
▪️Bank of England Tries to Save the Pound
⏰The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
🔹Traders usually scrutinize his public engagements to get clues regarding future monetary policy. As the central bank controls short-term interest rates, its head has more influence over the nation’s currency value than any other person.
🔹Why is it important?
Volatility is a common thing during Andrew Bailey’s speeches. Although the last meeting in May didn’t bring volatility to the GBPUSD pair, it prepared the market for the next day’s PMI release. The governor pointed out that BOE is ready to raise the rates if the economy suffers. Thus, lower-than-expected PMI data (negative for the currency) crashed the pound against the USD by 1170 points. A one-lot trade would have brought you $1170.
🔎Search : #GBP #BOE
🆔 @dailyfx
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🔗How to trade on the BOE governor’s speech?
🔸We expect the event to pave the way for GBP. Thus, further economic releases will have a greater impact on the currency.
📈If the speech is more hawkish than expected – the GBP will strengthen.
📉Otherwise, the pound is likely to fall lower.
📊Instruments to trade: GBPUSD, EURGBP, GBPCAD.
🔎Search : #GBP #BOE
🆔 @dailyfx
🔗How to trade on the BOE governor’s speech?
🔸We expect the event to pave the way for GBP. Thus, further economic releases will have a greater impact on the currency.
📈If the speech is more hawkish than expected – the GBP will strengthen.
📉Otherwise, the pound is likely to fall lower.
📊Instruments to trade: GBPUSD, EURGBP, GBPCAD.
🔎Search : #GBP #BOE
🆔 @dailyfx
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▪️Is Australia Ready for More Hikes?
⏰The Reserve Bank of Australia (RBA) will release its interest rates and make a statement on August 2, 7:30 GMT+3.
🔹The statement is a detailed economic outlook that gives projections for the following months. That’s why this is Australia’s most significant economic release.
🔹How will the AUD react?
As the world is under high inflation, currency prices are influenced by rate hikes before the hikes actually happen. Only a bigger-than-expected rate increase may become a potent bullish factor for the AUD.
Last time, the RBA raised the rate by 50 basis points as expected. The AUDUSD pair lost 1300 points after the release. With a 1-lot trade, you would have earned up to $1300.
🔎Search : #AUD #RBA
🆔 @dailyfx
▪️Is Australia Ready for More Hikes?
⏰The Reserve Bank of Australia (RBA) will release its interest rates and make a statement on August 2, 7:30 GMT+3.
🔹The statement is a detailed economic outlook that gives projections for the following months. That’s why this is Australia’s most significant economic release.
🔹How will the AUD react?
As the world is under high inflation, currency prices are influenced by rate hikes before the hikes actually happen. Only a bigger-than-expected rate increase may become a potent bullish factor for the AUD.
Last time, the RBA raised the rate by 50 basis points as expected. The AUDUSD pair lost 1300 points after the release. With a 1-lot trade, you would have earned up to $1300.
🔎Search : #AUD #RBA
🆔 @dailyfx
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🔗How to trade on the RBA statement?
📈If the bank raises the rate more than expected, the AUD will soar.
📉Otherwise, the AUD will likely fall.
Beware of trading before the news come out because volatile price swings may lead you to severe losses.
📊Instruments to trade: AUDUSD, AUDJPY, AUDCAD.
🔎Search : #AUD #RBA
🆔 @dailyfx
🔗How to trade on the RBA statement?
📈If the bank raises the rate more than expected, the AUD will soar.
📉Otherwise, the AUD will likely fall.
Beware of trading before the news come out because volatile price swings may lead you to severe losses.
📊Instruments to trade: AUDUSD, AUDJPY, AUDCAD.
🔎Search : #AUD #RBA
🆔 @dailyfx
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▪️USD Moves Weird Ahead of CPI
⏰The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
💡These indicators show a change in the price of goods and services purchased during the previous month. The main difference between the headline and the core indicator lies in the calculations. The Core CPI excludes food and energy prices due to their volatility.
The inflation rate is the most significant measure of economic health nowadays. Fed uses it to plan future rate changes and change quantitative tightening measures. The release greatly impacts almost every asset, including gold, stock market, cryptocurrency, and all USD-related forex pairs.
🔹Is this release special?
In brief, yes. When Federal Reserve released its statement on July 27, Fed chair Jerome Powell stated they had achieved the “neutral zone.” The current US interest rate of 2.50% is neither stimulating nor slowing the economy. Future rate changes will depend only on the economic data. Many analysts believe we have passed the most hawkish point of the Fed’s monetary policy.
Thus, a higher-than-expected CPI release will have a massive impact on the USD and Gold, which tend to move in the opposite direction. High inflation would mean the Fed’s policy isn’t good enough to control the prices, and a chance of a bigger rate hike will rise. As for now, the market expects a 50-basis-point hike on September 21.
🔎Search : #USD #DXY #CPI
🆔 @dailyfx
▪️USD Moves Weird Ahead of CPI
⏰The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
💡These indicators show a change in the price of goods and services purchased during the previous month. The main difference between the headline and the core indicator lies in the calculations. The Core CPI excludes food and energy prices due to their volatility.
The inflation rate is the most significant measure of economic health nowadays. Fed uses it to plan future rate changes and change quantitative tightening measures. The release greatly impacts almost every asset, including gold, stock market, cryptocurrency, and all USD-related forex pairs.
🔹Is this release special?
In brief, yes. When Federal Reserve released its statement on July 27, Fed chair Jerome Powell stated they had achieved the “neutral zone.” The current US interest rate of 2.50% is neither stimulating nor slowing the economy. Future rate changes will depend only on the economic data. Many analysts believe we have passed the most hawkish point of the Fed’s monetary policy.
Thus, a higher-than-expected CPI release will have a massive impact on the USD and Gold, which tend to move in the opposite direction. High inflation would mean the Fed’s policy isn’t good enough to control the prices, and a chance of a bigger rate hike will rise. As for now, the market expects a 50-basis-point hike on September 21.
🔎Search : #USD #DXY #CPI
🆔 @dailyfx
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▪️Will Inflation Push the Market Even Lower?
⏰The US Bureau of Labor Statistics will publish its update on inflation on October 13 at 15:30 GMT+3.
🔹Inflation is currently one of the hottest topics. That's because it's on the Fed's radar. It wants to bring inflation down. If the upcoming CPI data continues to rise, the Fed may try to change its policy to a more hawkish one. Of course, the Fed is already expected to raise rates at the upcoming November and December meetings, but these increases may be larger or may last until 2023. Any scenario will be considered.
📈 If the US CPI exceeds forecasted, USD will likely strengthen against other currencies.
📉Alternatively, the USD will drop.
📊Instruments to trade: EURUSD, USDCAD, USDCHF.
🔎Search : #USD #DXY #CPI
🆔 @dailyfx
▪️Will Inflation Push the Market Even Lower?
⏰The US Bureau of Labor Statistics will publish its update on inflation on October 13 at 15:30 GMT+3.
🔹Inflation is currently one of the hottest topics. That's because it's on the Fed's radar. It wants to bring inflation down. If the upcoming CPI data continues to rise, the Fed may try to change its policy to a more hawkish one. Of course, the Fed is already expected to raise rates at the upcoming November and December meetings, but these increases may be larger or may last until 2023. Any scenario will be considered.
📈 If the US CPI exceeds forecasted, USD will likely strengthen against other currencies.
📉Alternatively, the USD will drop.
📊Instruments to trade: EURUSD, USDCAD, USDCHF.
🔎Search : #USD #DXY #CPI
🆔 @dailyfx
🔻
▪️How to Trade Triangle Chart Patterns
What is a triangle pattern?
A triangle chart pattern is a consolidation pattern that involves an asset price moving within a gradually narrowing range. Triangle patterns visualize the battle between buyers and sellers in the market. Despite this battle, triangle patterns generally signal the continuation of a previous trend, so traders tend to wait for the price to break out of the range to enter a trade.
Triangle patterns can be identified on a chart by drawing two trend lines through the peaks and troughs of the formation. If the trend lines start far apart but later converge, the pattern you see is indeed a triangle chart pattern.
📌In this article, you will learn about the different types of triangle patterns, how to identify them on a chart, and what trading strategies you can use if you spot a triangle pattern on a chart.
🔎Search : #Trading_Skills #Triangle_Pattern
🆔 @dailyfx
▪️How to Trade Triangle Chart Patterns
What is a triangle pattern?
A triangle chart pattern is a consolidation pattern that involves an asset price moving within a gradually narrowing range. Triangle patterns visualize the battle between buyers and sellers in the market. Despite this battle, triangle patterns generally signal the continuation of a previous trend, so traders tend to wait for the price to break out of the range to enter a trade.
Triangle patterns can be identified on a chart by drawing two trend lines through the peaks and troughs of the formation. If the trend lines start far apart but later converge, the pattern you see is indeed a triangle chart pattern.
📌In this article, you will learn about the different types of triangle patterns, how to identify them on a chart, and what trading strategies you can use if you spot a triangle pattern on a chart.
🔎Search : #Trading_Skills #Triangle_Pattern
🆔 @dailyfx
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▪️Symmetrical triangle
The first type of triangle pattern we’ll discuss is a symmetrical triangle. Let’s take a look at the chart below.
🔎Search : #Trading_Skills #symmetrical_triangle
🆔 @dailyfx
▪️Symmetrical triangle
The first type of triangle pattern we’ll discuss is a symmetrical triangle. Let’s take a look at the chart below.
🔎Search : #Trading_Skills #symmetrical_triangle
🆔 @dailyfx
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🔗Symmetrical triangle
This is an example of a typical symmetrical triangle pattern. As you see, this pattern looks very prim and proper, with both trend lines coming together at a similar slope. This pattern is often used as a common example of triangle patterns because it forms a very clear and recognizable shape.
Symmetrical triangles occur when the price starts moving up and down within a limited range that gets smaller and smaller over time. The peaks of symmetrical triangles gradually become lower while the troughs keep climbing higher than the previous ones.
Symmetrical triangles usually occur in markets that don’t move in one direction. No single trend dominates this market, allowing buyers and sellers to influence price movements equally and create a period of consolidation.
Typically, when the price does break out from this limited range of movement, it moves in the direction of the previous trend with much more volume than during the formation of the pattern, showing that traders have moved away from the period of indecision and the trend is back on track.
🔎Search : #Trading_Skills #symmetrical_triangle
🆔 @dailyfx
🔗Symmetrical triangle
This is an example of a typical symmetrical triangle pattern. As you see, this pattern looks very prim and proper, with both trend lines coming together at a similar slope. This pattern is often used as a common example of triangle patterns because it forms a very clear and recognizable shape.
Symmetrical triangles occur when the price starts moving up and down within a limited range that gets smaller and smaller over time. The peaks of symmetrical triangles gradually become lower while the troughs keep climbing higher than the previous ones.
Symmetrical triangles usually occur in markets that don’t move in one direction. No single trend dominates this market, allowing buyers and sellers to influence price movements equally and create a period of consolidation.
Typically, when the price does break out from this limited range of movement, it moves in the direction of the previous trend with much more volume than during the formation of the pattern, showing that traders have moved away from the period of indecision and the trend is back on track.
🔎Search : #Trading_Skills #symmetrical_triangle
🆔 @dailyfx
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▪️Ascending triangle
The next type of triangle patterns we’re going to look at is an ascending triangle. Ascending triangles differ from symmetrical triangles in that only their bottom side is sloping. The upper side of an ascending triangle, drawn through the peak of the formation, remains horizontal, signaling that bear resistance stays the same despite the advance of the bulls.
🔎Search : #Trading_Skills #Ascending_triangles
🆔 @dailyfx
▪️Ascending triangle
The next type of triangle patterns we’re going to look at is an ascending triangle. Ascending triangles differ from symmetrical triangles in that only their bottom side is sloping. The upper side of an ascending triangle, drawn through the peak of the formation, remains horizontal, signaling that bear resistance stays the same despite the advance of the bulls.
🔎Search : #Trading_Skills #Ascending_triangles
🆔 @dailyfx
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🔗Ascending triangle
Typically, this pattern occurs after a very clear uptrend, which you can identify by the rising nature of its support line. It continues its climb and eventually converges with the static resistance line, breaking through it and resuming the previous uptrend. Thus, an ascending triangle is considered a bullish pattern that precedes a rise in price movement and trading volume.
Apart from identifying the future direction of price movement, ascending triangles can also indicate the best time to enter or exit trades, so spotting them on a chart means finding new opportunities for profitable trades.
🔎Search : #Trading_Skills #Ascending_triangles
🆔 @dailyfx
🔗Ascending triangle
Typically, this pattern occurs after a very clear uptrend, which you can identify by the rising nature of its support line. It continues its climb and eventually converges with the static resistance line, breaking through it and resuming the previous uptrend. Thus, an ascending triangle is considered a bullish pattern that precedes a rise in price movement and trading volume.
Apart from identifying the future direction of price movement, ascending triangles can also indicate the best time to enter or exit trades, so spotting them on a chart means finding new opportunities for profitable trades.
🔎Search : #Trading_Skills #Ascending_triangles
🆔 @dailyfx
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▪️Descending triangle
A descending triangle is the complete opposite of an ascending triangle pattern. Descending triangles occur in a bearish market and, as you may have guessed, are considered bearish patterns .
🔎Search : #Trading_Skills #descending_triangle
🆔 @dailyfx
▪️Descending triangle
A descending triangle is the complete opposite of an ascending triangle pattern. Descending triangles occur in a bearish market and, as you may have guessed, are considered bearish patterns .
🔎Search : #Trading_Skills #descending_triangle
🆔 @dailyfx
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🔗Descending triangle
As you can see on this chart, a descending triangle mirrors its counterpart and has one sloping and one horizontal trend line. But with descending triangles, the sloping side is the resistance line. This pattern shows that it is the bears who keep advancing on the bulls, who, from their end, can’t seem to offer adequate support to counteract the impending resistance. In the end, the bears usually break the support line, signaling the end and confirmation of the triangle and the continuation of the previous downtrend.
Though both descending and ascending triangles usually signal the beginning of a downtrend and an uptrend respectively, it’s still possible for the price to bounce off the horizontal trend line, resulting in the reversal of a previous trend. So most of the time it’s better to wait until the pattern is complete before making any trading decisions.
🔎Search : #Trading_Skills #descending_triangle
🆔 @dailyfx
🔗Descending triangle
As you can see on this chart, a descending triangle mirrors its counterpart and has one sloping and one horizontal trend line. But with descending triangles, the sloping side is the resistance line. This pattern shows that it is the bears who keep advancing on the bulls, who, from their end, can’t seem to offer adequate support to counteract the impending resistance. In the end, the bears usually break the support line, signaling the end and confirmation of the triangle and the continuation of the previous downtrend.
Though both descending and ascending triangles usually signal the beginning of a downtrend and an uptrend respectively, it’s still possible for the price to bounce off the horizontal trend line, resulting in the reversal of a previous trend. So most of the time it’s better to wait until the pattern is complete before making any trading decisions.
🔎Search : #Trading_Skills #descending_triangle
🆔 @dailyfx
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▪️Trading with triangle patterns: key points to remember
1️⃣Triangle patterns are formed when the price starts moving within a continuously narrowing range. This range is limited by two trend lines drawn through the peaks and troughs of the pattern, which represent support and resistance.
2️⃣Triangle patterns come in three main forms: symmetrical, ascending, and descending.
3️⃣Triangle patterns are generally considered continuation patterns, but they can also appear before the reversal of a trend.
4️⃣The most common strategy for trading triangle patterns is to wait for a price breakout and then enter a trade in the direction of the market movement.
🔎Search : #Trading_Skills
🆔 @dailyfx
▪️Trading with triangle patterns: key points to remember
1️⃣Triangle patterns are formed when the price starts moving within a continuously narrowing range. This range is limited by two trend lines drawn through the peaks and troughs of the pattern, which represent support and resistance.
2️⃣Triangle patterns come in three main forms: symmetrical, ascending, and descending.
3️⃣Triangle patterns are generally considered continuation patterns, but they can also appear before the reversal of a trend.
4️⃣The most common strategy for trading triangle patterns is to wait for a price breakout and then enter a trade in the direction of the market movement.
🔎Search : #Trading_Skills
🆔 @dailyfx