New Zealand Dollar Forecast: NZD/USD May Climb Despite Rising Treasury Yields

Wall Street saw red across the board on Thursday as the economic recovery picture took a hit following a worse-than-expected US initial jobless claims figure crossed the wires at 861k for the week ending February 13. Analysts were expecting 765k. Continuing claims also missed expectations at 4494k. The small-cap Russell 2000 index dropped 1.67%, followed by the Nasdaq Composite, S&P 500, and Dow Jones at -0.72%, -0.44%, and -0.38%, respectively.

The US 10-year Treasury yield climbed back near its recent multi-month high from earlier this week, with the current level just below 1.300%. Meanwhile, the US Dollar weakened with the DXY index falling nearly half a percentage point. The softer USD didn’t help gold and silver prices, however. XAU/USD was barely changed as it hovered near multi-month support. Silver prices fell against the Greenback, with XAG/USD dropping 1.29%

Elsewhere, lawmakers on Capitol Hill continued to move forward with finalizing President Joe Biden’s $1.9 trillion stimulus relief package, which is expected to advance through Congress by the end of this month. Talks over a separate infrastructure bill are also now on the radar after President Biden met with labor union leaders earlier this week.

The need for a stimulus bill has also gained steam following the failure of Texas’s power grid after a massive storm system caused chaos across the United States earlier this week. Nearly half a million customers in the Lone Star State are reported without power still. There was testimony on Capitol Hill over the recent GameStop market blunder.

                                           Most Profitable Investment in Malaysia

China Fuels Spike in Crude Oil Prices

Crude oil’s price spike lives on.

China’s economic recovery, dropping stockpiles, OPEC production cuts, and cold weather across the north has driven the price of crude oil to its highest mark in more than two years.

And there are no signs this climb will end any time soon with more vaccines rolling out and the global economy beginning to recover from the COVID-19 pandemic.

🛢️ Crude oil’s price continues its climb thanks to China’s recovery, cold temperatures in the north, and OPEC production cuts.

This push upwards seems to have no end in sight, so what are you waiting for to trade oil now?

Get the best profitable crude oil trading signals from the experts at www.moneyliferesearch.com register now.

                             Most Profitable Investment in Malaysia

4 Effective Trading Indicators Every Trader Should Know

 When your forex trading adventure begins, you’ll likely be met with a swarm of different methods for trading. However, most trading opportunities can be easily identified with just one of four chart indicators. Once you know how to use the Moving Average, RSI, Stochastic, & MACD indicator, you’ll be well on your way to executing your trading plan like a pro. You’ll also be provided with a free reinforcement tool so that you’ll know how to identify trades using these forex indicators every day.

THE BENEFITS OF A SIMPLE STRATEGY

Traders tend to overcomplicate things when they’re starting in the forex market. This fact is unfortunate but undeniably true. Traders often feel that a complex trading strategy with many moving parts must be better when they should focus on keeping things as simple as possible. This is because a simple strategy allows for quick reactions and less stress.

If you’re just getting started, you should seek the most effective and simple strategies for identifying trades and stick with that approach.

DISCOVER THE BEST FOREX INDICATORS FOR A SIMPLE STRATEGY

One way to simplify your trading is through a trading plan that includes chart indicators and a few rules as to how you should use those indicators. In keeping with the idea that simple is best, there are four easy indicators you should become familiar with using one or two at a time to identify trading entry and exit points:

• Moving Average
• RSI (Relative Strength Index)
• Slow Stochastic
• MACD

Once you are trading a live account a simple plan with simple rules will be your best ally. 

USING FOREX INDICATORS TO READ CHARTS FOR DIFFERENT MARKET ENVIRONMENTS

There are many fundamental factors when determining the value of a currency relative to another currency. Many traders opt to look at the charts as a simplified way to identify trading opportunities – using forex indicators to do so.

When looking at the charts, you’ll notice two common market environments. The two environments are either ranging markets with a strong level of support and resistance or floor and ceiling the price isn’t breaking through or a trending market where the price is steadily moving higher or lower.

Using technical analysis allows you as a trader to identify range bound or trending environments and then find higher probability entries or exits based on their readings. Reading the indicators is as simple as putting them on the chart.

TRADING WITH MOVING AVERAGES

One of the best forex indicators for any strategy is moving average. Moving averages make it easier for traders to locate trading opportunities in the direction of the overall trend. When the market is trending up, you can use the moving average or multiple moving averages to identify the trend and the right time to buy or sell.

The moving average is a plotted line that simply measures the average price of a currency pair over a specific period of time, like the last 200 days or year of price action to understand the overall direction.

You’ll notice a trade idea was generated above only by adding a few moving averages to the chart. Identifying trade opportunities with moving averages allows you to see and trade-off of momentum by entering when the currency pair moves in the direction of the moving average and exiting when it begins to move opposite.

TRADING WITH RSI

The Relative Strength Index or RSI is an oscillator that is simple and helpful in its application. Oscillators like the RSI help you determine when a currency is overbought or oversold, so a reversal is likely. For those who like to ‘buy low and sell high’, the RSI may be the right indicator for you.

The RSI can be used equally well in trending or ranging markets to locate better entry and exit prices. When markets have no clear direction and are ranging, you can take either buy or sell signals like you see above. When markets are trending, it becomes more obvious which direction to trade (one benefit of trend trading) and you only want to enter in the direction of the trend when the indicator is recovering from extremes.

Because the RSI is an oscillator, it is plotted with values between 0 and 100. The value of 100 is considered overbought and a reversal to the downside is likely whereas the value of 0 is considered oversold and a reversal to the upside is commonplace. If an uptrend has been discovered, you would want to identify the RSI reversing from readings below 30 or oversold before entering back in the direction of the trend.

TRADING WITH STOCHASTICS

Slow stochastics are an oscillator like the RSI that can help you locate overbought or oversold environments, likely making a reversal in price. The unique aspect of trading with the stochastic indicator is the two lines, %K and %D line to signal our entry.

Because the oscillator has the same overbought or oversold readings, you simply look for the %K line to cross above the %D line through the 20 levels to identify a solid buy signal in the direction of the trend.

TRADING WITH THE MOVING AVERAGE CONVERGENCE & DIVERGENCE (MACD)

Sometimes known as the king of oscillators, the MACD can be used well in trending or ranging markets due to its use of moving averages provide a visual display of changes in momentum.

After you’ve identified the market environment as either ranging or trading, there are two things you want to look for to derive signals from this indicator. First, you want to recognize the lines in relation to the zero lines which identify an upward or downward bias of the currency pair. Second, you want to identify a crossover or cross under the MACD line (Red) to the Signal line (Blue) for a buy or sell trade, respectively.

                                Most Profitable Investment in Malaysia

THE 3 MOST COMMON EMOTIONS TRADERS EXPERIENCE

 Some of the most common emotions traders experience include fear, nervousness, conviction, excitement, greed, and overconfidence.

Fear/Nervousness

A common cause of fear is trading too big. Trading with improper size magnifies volatility unnecessarily and causes you to make mistakes you normally wouldn’t make if you weren’t under the stress of risking larger losses than normal.

Another culprit for fear (or nervousness) is you are in the ‘wrong’ trade, meaning one that doesn’t fit your trading plan.

Conviction/Excitement

Conviction and excitement are key emotions you’ll want to feed off, and you should feel these in every trade you enter. Conviction is the final piece of any good trade, and if you don’t have a level of excitement or conviction then there is a good chance you are not in the ‘right’ trade for you.

By ‘right’ we mean the correct trade according to your trading plan. Good trades can be losers just as bad trades can be winners. The idea is to keep yourself winning and losing on only good trades. Making sure you have a conviction on trade will help ensure this.

Greed/Overconfidence

If you find yourself only wanting to take trades that you deem as possible big winners, you could be getting greedy. Your greed may have been the result of doing well, but if you aren’t careful you may slip and end up in a drawdown.

Always check that you are using proper trade mechanics (i.e. sticking to stops, targets, good risk/management, good trade set-ups). Sloppy trading as a result of overconfidence can end a strong run.

Learn more about managing greed and fear while trading.

                              Most Profitable Investment in Malaysia

Today's Dax Analysis

#DAX #ANALYSIS by MONEY LIFE RESEARCH!!!

Bullish opening with gap but the historical highs are again a strong resistance and it cannot with them, at least for now.  Today is a holiday in the USA so the day can be a bit boring.  As for data there is nothing relevant.

Live Chat Support Available @carolmagnus !!

For More Information Join Us On WhatsApp ✆ – +601548770298

Telegram Channel Link -https://t.me/moneyliferesearch

Crude Oil Slips as OPEC, IEA Cut Demand Outlook

 CRUDE OIL, GOLD, OPEC, IEA, COMMODITIES BRIEFING – TALKING POINTS:

• Crude oil ends an 8-day winning streak as IEA, OPEC cut demand outlook.
• Gold slips on better-than-expected US jobless claims figures.
• Stimulus progress will likely determine the short-term trajectory of both commodities

Crude oil ended its longest winning streak in two years overnight, after both the International Energy Agency (IEA) and Organization of the Petroleum Exporting Countries (OPEC) slashed their respective global demand outlooks. The IEA cut its forecast for oil consumption in 2021 by 200,00 barrels a day, stating that “renewed lockdowns, stringent mobility restrictions and a rather slow vaccine rollout in Europe have delayed the anticipated rebound”. OPEC also warned that global demand will rebound slower than previously thought.

However, both organizations continue to remain positive on the longer-term outlook for oil, with the IEA’s oil market division head, Toril Bosoni, stating that “we’re seeing that the outlook for the economy and oil demand in 2021 is looking brighter, despite the near-term weakness because of coronavirus”. Indeed, backwardation of the oil futures curve hints at further upside for crude prices in the coming weeks.

Oil futures curve created using Trading view

Meanwhile, gold prices fell just under 1% overnight, as better-than-expected jobless claims data appeared to diminish the argument for additional fiscal support. That being said, with House and Senate Democrats filing joint budget resolutions that will allow President Biden to pass the majority of his proposed $1.9 trillion stimulus package, gold’s downturn could prove short-lived.

The Federal Reserve’s dovish stance, and falling real rates of return, are also likely to underpin bullion. Fed Chair Jerome Powell reiterated that it is extremely unlikely that the central bank “even thinks about withdrawing policy support” in the foreseeable future. The upcoming economic docket is fairly light, with consumer sentiment out of the US a notable highlight. Fiscal aid developments will likely dictate the near-term trajectory of both commodities, with a weaker US Dollar probably limiting their respective potential downsides.

USD: US CPI will remain below 2%, but it is the profile that matters.

 USD: US CPI will remain below 2%, but it is the profile that matters.

All eyes are on the speech of the US January CPI and Federal Reserve Chairman Jerome Powell, considering the emphasis on the theme of reflation and the prospects of the US economy's potential overheating. At 1.6 percent year-on-year, CPI should remain subdued. However, with a sharp acceleration forecast in the second quarter and US CPI spiking to 3.8 percent in May, it is the profile that matters. On the above, though questions are growing as to whether, given the inflation and growth outlooks, the Fed signals a too loose policy set up, Chair Powell is likely to remain cautious today and not deviate from the message of the last FOMC meeting. As US real rates remain profoundly negative, the mix of clear upside price pressures, the risk of overshoot and CPI staying higher for longer, along with a cautious Fed sticking to its Average Inflation Targeting framework to make up for past inflation undershoots, should lead to a lower USD.

Shariah Stock Recommendation