Excellent rally on gold

On the daily chart of gold we can see that the price of the precious metal has rallied during today’s session to break above its 200 day and 55 day EMAs and reaches the 1274 zone. In case the price keeps rallying, its next resistance could be the 1300 level. Fundamentally, the drop on the US Dollar has supported the price of gold and also the 30% drop on Bitcoin has moved some capital towards gold. The price of gold may not rally in a straight line to the 1300 level, but it could make some pullbacks on the way up. To the downside, in case the price breaks below the 200 day EMA at the 1268 level, the bearish momentum may take gold to the low at the 1236 level, which could act as support. In reality, the price of gold may take any direction.

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The EUR/JPY at key resistance level

The EUR/JPY rallied during today’s session and broke a key resistance at the 134.479 level. The breakout has not been confirmed yet. On the weekly chart of the EUR/JPY we can see that the next candle should be above the 134.479 in order for the breakout to be confirmed. In case the rally continues on the EUR/JPY, then its next resistance level could be the 139.000 round number zone from where the price has already bounced to the downside in the past, but we must keep in mind that the pair has not visited that zone since July 2015. On the weekly chart we can also see a golden cross around the 126.371 level. The golden cross is completed when the 55 day EMA (purple line) crosses above the 200 day EMA (blue line). The golden cross has bullish implications in the midterm, therefore it is possible for the EUR/JPY to continue rallying.

The EUR/USD gains bullish strength

The EUR/USD has broken during today´s session above the 1.1800 level, but it still has to go and visit the 1.1900 level. Above the 1.1900 level, its next important resistance is at the 1.2000 zone. The MACD indicator over the daily chart is showing us a possible bullish trend change. If the MACD line (green line) crosses above its signal line (red line), then we could see a visit of the 1.1900 level or even a breakout. To the downside the most important support levels are at the 1.1700 level followed by the 1.1600 level. The 1.1600 zone has acted as a good support in the past, but now the 200 day EMA (blue line) is getting closer and closer to that level (the 1.1600) contributing to making the zone a significant support.

Possible loss of momentum on copper

So far this year, the price of copper has kept a very good bullish trend and is getting ready to close the year in a positive note. However, during the last few months of 2017, the price of copper has been consolidating around the 288.85 level as support and the 325.86 level as resistance. The 55 day EMA has also acted as a very good support or resistance zone. Lately, the price of copper has broken above the 55 day EMA and the 306.00 level, but the daily candles are showing us that the bullish momentum may be weakening and we could have a bearish retracement. The stochastics indicator is in the overbought zone and that could also be a signal of a possible reversal or correction.

Bullish flag on the Pound

Flags are chart patterns that usually act as continuation patterns. If the trend coming into the formation is bullish, then the asset has a higher probability of continuing higher, but the price may actually break out of the pattern in any direction. On the daily chart of the GBP/USD we can see that the price has formed a bullish flag. It is called a bullish flag, because the trend coming into the formation is bullish, but the flag itself has a small inclination to the downside. The GBP/USD has really found a good support at the 1.3300 level where we can find the 55 day EMA (purple line). In order for the bullish trend to continue, the price must break above the 1.3600 level. To the downside, the 1.3100 level could become a good support along with the 200 day EMA (blue line).

The EUR/USD short term

The EUR/USD has formed a breakout-pullback pattern over the 15 minute chart during this Thursday’s session. The Euro versus the Dollar has been very volatile since the Federal Reserve raised its interest rates, but it painted a dovish horizon for its monetary policy during 2018. When the EUR/USD broke below the 1.1800 level, it made a low at the 1.1770 level and pulled back to the 1.1800 level, which could now act as resistance. If the price of the EUR/USD bounces to the downside from the 1.1800 level, then it would be completing a breakout-pullback pattern, but in order for the bearish trend to continue, the price must break below the 1.1770 level.

Small comeback on gold

Gold takes advantage of the weakness in the US Dollar and tries to pull back to the upside as shown on the daily chart of the precious metal. On the chart we can see that the 200 day EMA (blue line) was a great support level before the price broke to the downside. Usually, good support levels could become good resistance levels or vice versa. Therefore, if the price of gold continues pulling back from the low at the 1236 level, it may reach the 200 day EMA at the 1268 level. The 200 day EMA may become a resistance or the price of gold may just go back down from the current levels and break below the 1236 level to try to reach the 1200 zone, which could act as a better support area.

The Dollar keeps rallying

The Dollar index has broken above the 94.00 level as shown on the daily chart while the bullish momentum may continue. The greenback has been supported by the possibility that the FED will raise its interest rates during the next meeting this Wednesday. If the index keeps rallying, it may reach the 95.00 level where it has already found resistance. In this case, the 200 day EMA is very close to the 95.00 level, making that zone an important resistance. On the other hand, the stochastics indicator is in the overbought zone, but if it drops below the 80% zone, then the Dollar index may pull back to the 93.00 or 92.00 level. In reality, the 91.00 level could act as a better support.

The Pound stays weak

The GBP/USD could not confirm the break out above the 1.3500 level and falls back down slowly towards the 1.3300 zone where we can find the 55 day EMA (purple line). On the daily chart of the GBP/USD we can see that the price has formed what it appears to be a bullish flag. If the price breaks above the 1.3500 level, then the bullish flag pattern may be confirmed, but a break out of the 1.3600 level would be a better confirmation. On the other hand, the stochastics indicator has room to keep falling before entering the oversold area, therefore the price of the GBP/USD may try to drop below the 1.3300 level and visit the 1.3200 level. A better support could be the 1.3100 zone where we can find the 200 day EMA (blue line).

The EUR/USD loses direction

During this Friday’s session, the EUR/USD loses strength and falls to the 1.1750 zone, from where it bounces rapidly to the upside and goes back to the zone around its 55 day EMA (purple line), just below the 1.1800 level. Around that zone, the EUR/USD loses its direction and stays consolidated. The Stochastics indicator is in the oversold area, showing us that the pair may try to break above the 1.1800 level. Above that level, the next resistance could be the 1.1900 level. But since the pair may breakout in any direction, to the downside, the 1.1700 level may act as support, followed by the 1.1600 level or the 200 day EMA (blue line).

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The Dollar recovers

The Dollar index had fallen below the 93.00 level, but it couldn’t reach the 92.00 level. When the index was below the 93.00 level it made some interesting moves as shown on the daily chart. The long lower shadows on the daily candles below the 93.00 level indicate that the buyers came into the market when they saw it falling and prevented it from reaching the 92.00 level. Actually, below the 93.00 level we can see the formation of a double bottom. The Dollar has been benefited during the last few sessions due to the tax reform developments in the United States. At the moment, the Dollar index reaches its 55 day EMA around the 93.54 level. The 55 day EMA may act as resistance, but the index could try to go and reach the 94.00 level However, a better resistance could be found at the 95.00 level where we can find the 200 day EMA (blue line).

The 1.1800 level is support on the EUR/USD

The euro versus the Dollar has lost its bullish momentum once it got to the 1.2000 zone and pulls back to the 1.1800 level. Right now the 1.1800 level could act as support, because it was resistance in the past. On the daily chart of the EUR/USD we can also see that the 55 day EMA is very close to the 1.1800 level and could contribute to make that zone a very good support for the pair. Below the 1.1800 level, the most important supports are at the 1.1700 level and the 1.1600 level, along with the 200 day EMA. The stochastics still have a lot of space to keep falling, therefore the price of the EUR/USD may drop some more. To the upside, the most important resistance is at the 1.2000 level and the 1.2100 level.

High volatility on the Pound

The Pound versus the Dollar has had a lot of volatility during the last few sessions as shown on the daily chart. The GBP/USD has tried to break above the 1.3500 level on several occasions, but every time it tries to break above that level, it loses its bullish momentum and falls right back, leaving behind what is known as a false breakout. The pair has now fallen between the 1.3500 level and the 1.3400 level where it is stuck. We can also observe the volatility on the long shadows of the daily candles in both directions. To the downside, the zone that could act as support is the 1.3300, due to the fact that the level acted as a resistance in the past. For now the 1.3500 level is its most relevant resistance, but the 1.3600 level could also act as resistance.

Attention on gold

When an instrument has been consolidating for a long period of time we must pay attention to it, due to the fact that at any moment the price may take off in any direction. When there is high volatility in an asset, the best thing to do is to wait for it to calm down. When the market is in a range and it is consolidating, then we must be attentive to a possible breakout and higher momentum in any direction. We may be able to sense when an asset is about to break out, but we don’t know in which direction. On the daily chart of gold we can see that the precious metal has been boxed between the 200 day EMA at the 1270 level and the 1300 level. If we see a rise of volatility close to a support or resistance zone, the commodity may be getting ready to take off.

Will silver come out of consolidation?

Silver completed 36 consecutive sessions oscillating around the 17.00 level, round number level that coincides with the 200 day exponential moving average. When the price of an asset consolidates during a long period of time around a zone or a level, it is because the traders and investors are complacent with the actual price and there are no underlying reasons or fundamentals for the price to move. During the last two trading sessions the price of silver has broken to the downside as shown on the daily chart and comes near the 16.29 level, which has acted as support in the past, but the 16.00 level could act as a better support level for the commodity. To the upside, the 17.45 zone could act as resistance, followed by the 18.19 level. Until the price of silver breaks below the 16.00 level or above the 18.19 level we do not have a clear direction, even though the price of silver has been in a much larger consolidation zone since the beginning of 2016.

Strong rally on the Pound

The GBP/USD has been supported by the latest developments around the Brexit negotiations. During the last few days the volatility on the pair has increased greatly, taking the price to a low around the 55 day EMA (purple line) around the 1.3200 zone. From there the GBP/USD bounces rapidly to the upside as the news about a potential soft Brexit hit the wires. The rally on the GBP/USD has taken the pair to a high around the 1.3447 level, but the price currently settles around the 1.3411 zone. The bullish momentum is still in place and the pair may try to visit the 1.3500 level, but in order for the bullish trend to come back in the midterm, the price must break above the peaks at the 1.3600 zone. To the downside, the most relevant support level is at the 1.3300 level, zone that was resistance and could change to support.

Rally on the USD/CAD

The USD/CAD has been respecting the technical levels very well as shown on the daily chart. First, the pair tries to break above the 200 day EMA (blue line), but pulls back down to the 1.2674 level from where it bounce back up. On the second visit to the 200 day EMA, the USD/CAD finds again resistance and goes back down to the 1.2674 level, where we can find on the second occasion the 55 day EMA (purple line). During the last two trading sessions, the USD/CAD has come again to the 200 day EMA and it is trying to stall there. In case the pair breaks above the 1.2800 and the 200 day EMA, then the bullish momentum may accelerate and the price may reach the 1.3000 level. To the downside, the closest support is at the 1.2674 level, followed by the 1.2600.

Has the Euro lost its momentum?

The Euro versus the Dollar has been gaining some ground since it made a low at the 1.1600 zone as shown on the daily chart. Around the 1.1800 level the pair made some interesting moves. Initially, when it tried to break above the 1.1800 level, there was a shooting star pattern, which helped push the price lower towards the 55 day EMA. At the 55 day EMA, the price of the EUR/USD bounced to the upside and made a new high above the 1.1900 level. The stochastics indicator is also making higher highs, but it has entered the overbought zone, therefore we could see a bearish pullback or profit taking on the EUR/USD. To the downside, the most relevant supports are at the 1.1800, 1.1700 and 1.1600 levels. To the upside, the most important resistances are the 1.2000 level followed by the 1.2100 level.

Will copper go back to its bullish trend?

Even though the markets in China have been pulling back a little bit, copper tries to go back to its bullish trend. Copper and the Chinese economy have a positive correlation due to the fact that China is the largest consumer of copper in the world. On the daily chart of copper we can see that during its latest drop, the price came to the 307.00 level where we can find the 55 day EMA and from where it bounces to the upside. During this week, the price of copper has been gaining some ground and breaks above the bearish trendline. Copper may be trying to change its direction to the upside. The stochastics indicator also breaks above its bearish trendline but accelerates too rapidly to the overbought zone on the 80% level. Therefore, the price of copper may try to correct to the downside. On the other hand, if the price continues to rise, its closest resistance is at the 325.86 level, but a more important resistance is at the 330.66 level where we can find the 200 month exponential moving average.

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Strong drop on the USD/JPY

The US Dollar has been losing ground versus its main counterparts during today’s session, especially versus the Yen and the Swiss Franc after the disappointing durable goods orders out of the United States. The core durable goods reading came out surprisingly lower than expected for the month of October, after being on the upside during three months in a row. On the daily chart of the USD/JPY we can see that the price has broken below its 200 day EMA (blue line), around the 111.77 level to drop to the 111.55 level. From this point on, the USD/JPY has practically the road clear to drop all the way to the low at the 109.54 level, but it could have some minor pullbacks on its way down. The same 200 day EMA may become now resistance, but the 55 day EMA (purple line) or the 113.00 level are still its most relevant resistance zone.

The USD/JPY is trapped in between EMAs

The exponential moving averages or EMA could act like good support or resistance zones, especially the ones that are slower like the 200 period or 55 period EMAs. On the daily chart of the USD/JPY we can see that the pair had a good bullish trend until it decided to break below the 55 day EMA (purple line) and came very close to the 200 day EMA (blue line). When this type of price action occurs, normally the price of the asset goes back to the 55 day EMA like it did on the USD/JPY during the last two trading sessions. The price is currently boxed between those two moving averages and it could stay there for a while without taking a clear direction. In order for the bullish trend to come back, the price must break above the 113.00 level. To the downside, a break down below the 111.64 level could clear the road for the pair to drop to the 109.54 level.

False breakout on gold

A false breakout is when the price of an asset manages to break above an important resistance level or below an important support level, but the momentum is lost and the price cannot continue further, only to fall right back to the consolidation area where it was before. On the daily chart of gold we can see that the commodity was consolidating during the last 22 sessions in between the 200 day EMA (blue line) and the 55 day EMA (purple line). During yesterday’s session, the precious metal broke above the 55 day EMA and came close to the 1300 level without touching it. The bullish momentum was not enough and today the price drops below the 55 day EMA and enters the congestion area where it was before. From this point on the price may head in any direction. Above the 55 day EMA at the 1283 level, its next resistance is still the 1300 level. Below the 200 day EMA at the 1268 level, its next support level could be the 1200 zone.

Will gold keep its bullish momentum?

Gold has finally broken out of the consolidation where it was stuck, but will it ultimately break above the 1300 level? God has been consolidating during the last 22 sessions between the 55 day EMA (purple line) and the 200 day EMA (blue line). During this Friday’s session, the price managed to break above its 55 day EMA at the 1283 level. The price of gold comes close to the 1300 level, but that zone may act as resistance. Gold still has not broken above the 1300 level. A breakout above the 1300 level will clear the road for gold to reach the peak at the 1357 level. To the downside, its most relevant support is the 200 day EMA at the 1268 level, due to the fact that the price has already bounced to the upside on several occasions from that moving average. 

The USD/CAD comes near the 200 day EMA

The USD/CAD ties to go back to its midterm bullish trend after having retraced to the downside as shown on the daily chart. The pair managed to drop below the 200 day EMA (blue line), but it did not reach the 55 day EMA (purple line). The USD/CAD has been in a good bullish trend from the low that it made at the 1.2060 level, even though oil has been rallying and it should have supported the Canadian Dollar. Normally, the 200 period EMA acts as a good support or resistance zone and that is why if the USD/CAD reaches that moving average, it may try to bounce to the downside from there. However, the USD/CAD may also try to break above the 200 day EMA and maybe go and visit the 1.3000 level which could act as resistance.

The EUR/USD breaks above the channel

The EUR/USD was in a well-defined bearish channel as shown on the daily chart, but yesterday the pair rallied above the upper trend line of the channel to break today above the 1.1800 level. Despite the strong rally, the EUR/USD losses its momentum and drops back during today´s session to form what it appears to be a shooting star pattern on the daily candle. The shooting star pattern is a bearish reversal pattern and if tomorrow’s candle is bearish, the formation will be confirmed. On the other hand, the 1.1700 level may act as support, but if the price breaks below the 1.1700 level, then the pair will be entering again the bearish channel with some supports at the 1.1600 level or the 1.1500 level where we can find the 200 day EMA. To the upside, its next resistance level could be the 1.1900 level.

Euro rises after the German data

The Euro gains a strong bullish momentum versus its major counterparts after the German data showed that its economic growth was higher than the United States’ during the third quarter. The data supports a possible monetary policy change by the European Central Bank and that is why the Euro rises. On the daily chart of the EUR/JPY we can see a strong bullish momentum that took the pair above the 133.00 level and reaches a high at the 133.82. The 134.00 level could act as a resistance along with the highs at the 134.47 level, but in order for the pair to go back to its bullish trend in the long term, the price must break above the 134.47 level. Regardless of the strong rally, the EUR/JPY may try to pull back, in case of a bearish retracement, the pair may find some support at the 133.00 level. Below the 133.00 level we can see some interesting supports at the 132.00 level where we can find the 55 day EMA followed by the low of the range at the 131.37 level.

Will the Kiwi go back to its bearish trend?

The Kiwi or the NZD/USD was retracing to the upside from the 0.6800 zone as the probabilities of a rate hike by the Reserve Bank of New Zealand got higher amid a warning about rising inflation. However, once the pair got close to the 0.7000 level, the stochastics indicator visited the overbought level at the 80% zone and bounced to the downside at the same time that the price of the NZD/USD came back to the 0.6900 level. Since October 24^th, the 55 day EMA crossed below the 200 day EMA, forming what we know as a “death cross”, which has bearish implications in the midterm. Therefore, it is not unlikely to see the pair go back to its bearish trend, but at the same time the 0.6900 level may act as support. Additionally, in order for the NZD/USD to go back to its bearish trend, the price must break below the 0.6800 level.

Copper stays at support

Copper has found a good support zone at the 307.00 level where we can find the 55 day EMA as shown on the daily chart. Copper has already bounced from the 55 day EMA to the upside and even though it has been retracing to the downside during the last few weeks, the bullish trend is still in place in the midterm. Therefore, it is possible for the commodity to bounce to the upside from the 307.00 level. In case of a bullish bounce, its closest resistance is at the 318.38 level, followed by the peak that it made at the 325.86 level. In order for copper to go back to its bullish trend, it should break above the 325.86 level. In case of a bearish breakdown below the 55 day EMA, copper would practically have the road clear to fall to the low that it made at the 289.31 level.

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Copper may have found some support

Copper was rallying on the back of great fundamentals out of China, which is one of the biggest consumer of the industrial metal. The bearish pullback on copper around the middle of September was stalled by the 55 day EMA from where the price of copper bounces to the upside. The commodity rallies to the 325.86 level from where it bounces to the downside. The most recent pullback on copper has taken the price to the 307.00 level, which is trying to act as a support. The 317.84 has acted again as a resistance, but copper falls back to the 307.00 level and the 55 day EMA. The price of copper may have found a support at the 55 day EMA as it did in September and it could bounce back to the upside. In case of a bullish bounce, the 317.84 level could act as a resistance, and in order to keep its bullish trend it must break above the 325.86 level.

Extreme consolidation on gold

On many occasions the financial assets could enter into a well-defined range in a consolidation that could last a prolonged period of time like in gold. On the daily chart of gold we can see that the price of the precious metal has been consolidated between the 200 day EMA as support around the 1267 level and the 55 day EMA as resistance around the 1283 level during the last 10 sessions. Inside such range, we could try to trade by buying at the support of the 200 day EMA or selling at the resistance of the 55 day EMA, however we could risk having the price take off in any direction and leaving us on the wrong side of the trade. If there is a bullish breakout, then its closest resistance is at the 1300 level, but a breakout above the 1300 level could take the price to the peak at the 1357 level. To the downside, a bearish breakdown of the 200 day EMA would open the road for the price to drop all the way to the 1204 level or the 1200 level with some minor pullbacks on the way down. 

The Euro could not break support

The Euro versus the Dollar continues finding some good support at the 1.1600 level without being able to break it to the downside, at the same time, the pair has not been able to bounce to the upside. On the daily chart we can see that the pair has tested the 1.1600 level on several occasions and as the EUR/USD touches more times the 1.1600 level, the probabilities of seeing a bearish break down rise. If the pair breaks to the downside, then its next support could be the 1.1500 where we can find the 200 day EMA. To the upside, the 1.1689 level has been a good support in the past and now is acting as a resistance. If the EUR/USD breaks above the 1.1689 level, its next resistance level could be the 1.1800 level. 

The Dollar at a key resistance

The Dollar index has reached a very good resistance at the 95.00 level and it has not been able to break that level to the upside as shown on the daily chart. The Dollar gained strength this Friday versus most of its counterparts as the NFP numbers came out somehow mixed. While the number of new jobs created came out lower than expected, the US unemployment level came down from 4.2% to 4.1%. The Dollar has been very volatile, but it has not taken a clear direction. Above the 95.00 level, its next resistance could be the 95.50 level, but the 96.00 level could also act as a resistance. To the downside, the 94.00 level is its closest support along with the 55 day EMA. The 93.00 level could act as a more relevant support on the index.

The Pound falls after the Bank of England’s rate decision

The Bank of England has risen its interest rates from 0.25% to 0.50% for the first time since 2007 when the financial crisis started. Even though the rate hike should have supported the Pound, the GBP/USD falls more than 200 pips from the 1.3300 zone to below the 1.3100 level as shown on the daily chart. The drop on the Pound is due to the fact that the Bank of England used a dovish language and said that the next rate hikes will be gradual. Additionally, it looks like the market had already priced in the current rate hike and the GBP/USD had no space to rally further. At the moment, the pair keeps its bearish momentum and it may possibly visit the 200 day EMA, around the 1.3000 zone where it could find some support. Below the 1.3000 level, its most relevant support is at the 1.2800 level. Above the 1.3100 level, the pair would be going back into the congestion area where it may consolidate for a longer period of time.

The bullish momentum on oil could accelerate

WTI oil has had a very good bullish momentum amid the continuation of production cuts of crude and the possibility of a rise in demand from China as the Chinese economy keeps expanding. WTI oil reaches a high around the 55.00 zone, level that was last touched on January 1^st of this year. If the price manages to break above the 55.00 level, then WTI oil would be entering a new bullish trend in the midterm. The MACD indicator is showing us that the bullish trend is gaining strength, therefore a bullish continuation of WTI oil is possible. If the price retraces to the downside for whatever reason, then its closest support level is at the 52.00 zone, followed by the 50.00 zone. The 55 day EMA and the 200 day EMA could also act as support.

The Euro continues consolidating

The EUR/USD is currently consolidating in a relatively tight range just above the 1.1600 level as shown on the daily chart. The pair may be waiting for the NFP numbers to be released this Friday before taking a more clear direction. Today’s FED announcement caused a lot of volatility, but the EUR/USD did not take a clear trend. The MACD indicator is showing us that the bearish trend has come back, but the pair may go in any direction. To the downside, the most relevant support is at the 200 day EMA, around the 1.1500 zone. Below the 1.1500 level, the 1.1400 or the 1.1300 levels may also act as supports. To the upside, the closest resistance is at the 1.1700 level, but the 55 day EMA could also act as resistance. In order for the EUR/USD to go back to its bullish trend, the price must break above the 1.2100 level in the long run.

Gold bounces from the 200 day EMA

Gold was retracing to the downside from the 1300 zone to break below the 55 day EMA (purple line) until it reached the 200 day EMA (blue line) around the 1266 level. Gold had already bounced once from the 200 day EMA at the beginning of October and on this second visit to the moving average it bounce again to the upside. We could possibly see the formation of a double bottom pattern around the 200 day EMA, which is a bullish reversal pattern. But in order for the double bottom pattern to be confirmed, the price of gold must break above the 1300 level, which is its signal line. For now, gold may stay consolidated, stuck between the 200 day EMA and the 55 day EMA around the 1285 level. On the other hand, if the price manages to break below the 200 day EMA, then gold would have the road clear to fall all the way to the 1204 zone.

Summary of the futures market

In the United States, trading futures began in the mid-19th century with the establishment of central grain markets where farmers could sell their products either for immediate delivery, also called the spot or cash market, or for forward delivery. These forward contracts were private contracts between buyers and sellers and became the forerunner of today’s exchange-traded futures contracts. Both forward contracts and futures contracts are legal agreements to buy or sell an asset on a specific date or during a specific month. Where forward contracts are negotiated directly between a buyer and a seller and settlement terms may vary from contract to contract, a futures contract is facilitated through a futures exchange and is standardized according to quality, quantity, delivery time and place. The only remaining variable is price, which is discovered through an auction-like process that occurs on the Exchange trading floor. Conventionally, traders are divided into two main categories, hedgers and speculators.

Hedgers use the futures market to manage price risk. Speculators on the other hand accept that risk in an attempt to profit from favorable price movement. While futures help hedgers manage their exposure to price risk, the market would not be possible without the participation of speculators. They provide the bulk of market liquidity, which allows the hedger to enter and exit the market in an efficient manner. Speculators may be full-time professional traders or individuals who occasionally trade. Some hold positions for months, while others rarely hold onto a trade more than a few seconds. Regardless of their approach, each market participant plays an important role in making the futures market an efficient place to conduct business.

The Forex Market through ActivTrades

The Foreign exchange market (also known as Forex, currency market or FX market) is, by far, the largest financial market in the world. It includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global Forex and related markets is currently over US$ 3 trillion. Lots of traders are starting to trade Forex due to the Forex market advantages. Here are the most important Forex market advantages:

24 hours a day market. The Forex market is open 24 hours a day (except on weekends). So, no matter where you are based, you can trade Forex at your favorite time.

High liquidity. Forex market is the biggest financial market in the world.

Leverage. The leverage at ActivTrades can be as high as 400:1.

Free trading platforms at ActivTrades. On Forex most brokers offer good trading platforms for free and free Demo accounts.

For more information on how to start trading with ActivTrades, please visit the following link:

https://www.activtrades.com/en/forex-trading

There is always 24 hour support available.

The Most Profitable Traders

They are experienced – Probably the most horrifying and worst myth shot out to anyone considering trading for a living is that you will compound millions in an extremely short amount of time. The only true way to make every day profitable comes through experience, and countless hours learning is crucial to longevity of success.

They trade to make money, not to be right – They understand the strengths and possible pitfalls of what it is they do for a living, and use that knowledge to curb their emotional output.

They have an edge and know how to use it – They understand that without it they wouldn’t last long

they have a game plan, and follow it explicitly – Each trade is planned and opportunities are scouted for before any trading takes place. They steer away from the killer of all killers: overtrading.

They manage risk – Regardless of how much conviction they have on a trade, they will still do what they can to avoid the potential of any losses and understand rule #1 about trading: anything can happen.

They think about the trade, not the money behind it - Focusing on money can destroy your means to objectively assess the trade itself.

Consolidation on orange juice

The price of the orange juice contract for November has gotten into a consolidation as shown on the weekly chart, around the 154.73 level where we can also find the 200 week EMA and the 55 week EMA. On the consolidation a pennant or triangle has been formed and due to the fact that the MACD indicator is still showing a bullish trend, it is possible to see the price breaking to the upside. In order for a bullish breakout to be confirmed, the price must overcome the 164.55 level. If there is a real breakout of the 164.55 level, then the price of orange juice would have the road clear all the way to the 189.00 zone, level which already acted as resistance in the past. To the downside, the most important support levels are at the 140.00 level or the low at the 125.00 level.

Pullback on copper could have been over

The price action on copper has been caused by the economic indicators in China. The rally that the commodity had to the 317.84 level, the pullback to the 55 day EMA, and the following rise to the 325.86 level have been the result of a variety of fundamental data out of the Asian Giant. Whatever happens in China directly affects the price of copper due to the fact that China is the main consumer of commodities and the industrial metal. From the last peak that copper reached at the 325.86 level, there was a bearish pullback that took it to the 317.84 zone, which acted as a support and that it was resistance in the past. Apparently, the bearish pullback that copper had to the 317.84 zone is over and the price may try to bounce back up, but in order to keep its bullish trend, it must break above the 325.86 level. The angle of inclination of the 55 day EMA (purple line) is telling us that the bullish trend is still in place, but if the copper keeps falling, that same moving average may act as support. The 200 day EMA may also act as support, but at the moment is too far away.

Possible bearish continuation on gold

Gold bounces to the downside from the 1300 zone as shown on the weekly chart and it may try to reach the 1260 level where we can find the 200 week EMA and the 55 week EMA exactly at the same level. The price of gold has already bounced to the upside from the 1260 zone, therefore we could see another bullish bounce from that area in case the price falls to that zone. On the other hand, if gold breaks below the 1260 level, then it may have the road clear to fall all the way to the low at the 1204 level or the 1200 level. The 1300 level may still act as a resistance to the upside, but another possible scenario is that the 55 week EMA (purple line) may cross above the 200 week EMA (blue line) and form what it is known as a “golden cross”, which has bullish implication in the mid-term. A breakout above the 1300 level may take the price of gold all the way up to the peak at the 1357 level.

Risk aversion supports the Yen

The main stock market indices around the world are in the red. Risk aversion has come back into the markets with a vengeance after the disappointing earnings reports of some of the corporations in the United States and Europe. Additionally, the Chinese economy seems to be deaccelerating and that has pressured the emerging markets and the main Asian indices to the downside. As the risk aversion rises, the traders and investors find refuge in the Yen and other safe-haven assets like gold. That is why we see a strong drop on the USD/JPY during today´s session, due to the fact that the Yen is que quote currency on the pair.  However, despite today’s drop, the USD/JPY is still boxed between the 113.00 level and the 112.00 level. The 55 day exponential moving average is still above the 200 day exponential moving average, which is an indication that the pair keeps a slight bullish trend. Besides the aforementioned, the USD/JPY has already visited in different occasions the 113.00 level and the more times the pair visits that level, the higher the probabilities of breaking it to the upside. To the downside, the most relevant support level is at the 200 day EMA, around the 111.23 level.

Resistance becomes support on copper

In technical analysis we can see on many occasions that a support level may become resistance or resistance may become support. That happens mostly because of psychological reasons. On the daily chart of copper we can see that the commodity was having a good bullish trend until it reached the 317.84 level from where it bounces to the downside. On the bearish bounce from the 317.84, the level is labeled as a resistance. The price then falls to the 55 day EMA (purple line) from where it goes back up. When the price goes back to the 317.84 level, at that zone some traders open short positions believing that the level was going to act as resistance once more, but the bullish momentum was so strong that the price continued higher until it reached the 325.86 level. The short positions enter negative territory, but when the price retraces to the downside and visits the 317.84 level again, those short positions go back to breakeven and the sellers feel relieved, rushing to close those short positions before the price goes back up. That is why that zone becomes support and the price may try to bounce back up from there. However, in order for the bullish trend to be sustained, the price of copper must break above the high at the 325.86 level. In case the price keeps dropping, then its next most relevant support is at the 55 day EMA, around the 298.97 level.

Silver is pressured to the downside

Silver falls during two sessions in a row after reaching a high around the 17.44 level as shown on the daily chart. The drop on silver coincides with the drop on gold after the rally on the Dollar and a rise of risk appetite. Precious metals are often used as safe haven instruments and that is why they rise on risk aversion and fall on risk appetite. Silver made a high on the 18.19 level after a very good rally, but recently it has been oscillating around the 200 day EMA. Today the price of silver falls below the 200 day EMA and below the 17.00 level. However, the 17.00 zone may act as support and silver may bounce to the 17.44 level. A breakout above the 17.44 level could take silver back to the peak at the 18.19 level. On the other hand, if silver breaks below the 17.00 level, its most relevant support could be the 16.29 level followed by the 16.00 level.

Uncertainty around Brexit stalls the rally on the GBP/USD

The GBP/USD was in a good bullish pullback from the 1.3000 zone as shown on the daily chart until it got to the 1.3300 zone where it stalls its rally. The probability that the Bank of England may raise its interest rates has been diminished by the uncertainty surrounding the Brexit negotiations. That is why during today’s session we can see that the GBP/USD has bounced to the downside from the 1.3300 zone. However, the 1.3200 level may act as a support, especially when we can see the 55 day EMA around that level. Below the 1.3200 level its next support could be the 1.3000 level where we can also find the 200 day EMA very close to that zone. To the upside, in case the pair breaks above the 1.3300 level, its next resistance may be the 1.3500 level, followed by the highs that it made around the 1.3600 level.