Currency observatory in the market
In the currency market is a system which is in contrast changes which must be very attentive to the correct decision to avoid fatal errors in the currency market.
The difference between success and failure in trading in the forex markets will likely depend on what currency pairs you choose to negotiate every week and not exact trading methods that could be used to determine entries and exits the market. Each week I’m going to analyze them fundamentals, the feeling and them positions technical for determine what pairs of badges are which have more likely of produce them opportunities of trading more easy and more profitable for the week. In some cases be negotiated following the trend. In others cases, is negotiated in the levels of support and resistance in those markets in a range.
View General 7 of November 2016 Market forex.
Last week I predicted that the best operation for this week would probably come in a long of the USD/CAD. This operation we left a small gain of the 0.06%.
The market seems more difficult to forecast this week, since it will depend on the outcome of the presidential elections in the United States on Tuesday, and the result is now uncertain. However, I think that Clinton will win, which should help to strengthen to the dollar us.
Therefore, I suggest that the best operation for this week will probably come in the USD/CAD long since the USD stood well against CAD during its period of relative weakness over the past week.
Analysis Fundamental and sentiment of the market
Fundamental analysis is of little use in this moment, it is more a case of paramount importance of political development and the feeling, although of course these factors influence the fundamental economy.
The two currencies that stand out here are the US dollar and the pound sterling.
The United States presidential election takes place on Tuesday, and the outcome is likely to have an effect in the stock markets (especially in the U.S. stock market) and in the US dollar, with a victory of Trump being probably bad for both, at least in the short term.
It week last had a sentence judicial in the United Kingdom that puts to the Brexit in danger potential, and this prompted the rise of the pound British in days recent until the point of be the currency that more climbed in the week. It is likely that this effect will continue for some time.
He dollar of United States has remained in a trend bullish, surpassing their prices historical of ago 13 and 26 weeks, and above a line of trend clear and of support that is can draw connecting them minimum recent. However, weekly sailing was strongly bearish and it is showing a shift in the price, so technically this uptrend is in doubt.
USD / CAD
The price has State returning is bullish during many weeks, but makes two weeks finally had a close above the range to long term, formed by a candle bullish very bullish that closed near its maximum. Now there have been other small sailing, although the price ended the week still contained by the resistance in of 1,3400. In general, seems the pair of currencies more clearly bullish for the dollar us. market forex.
The pound sterling had its best week since February, and the dollar of the United States showed weak to surveys that come closer to the Presidency Trump, so this pair produced a strongly bullish candle this week. The price has been making maximum of 1 month.
There is certainly a long-term downward trend, and while the dollar will probably rise when we know the results of the US elections (provided that favor Clinton), this pair probably won’t be the best pair to take advantage of a continuation of the strength of the pound sterling.
Bullish of the USD and the GBP, bassist of the CAD.