Sample Category Title

Pivot (invalidation): 15.4600

Our preference Short positions below 15.4600 with targets at 15.3000 & 15.2200 in extension.

Alternative scenario Above 15.4600 look for further upside with 15.5400 & 15.6200 as targets.

Comment The RSI is mixed to bearish.

We can’t really speak of earning money on FOREX without understanding the risks. Foreign exchange market isn’t a safe battleground for beginners. Huge money is at stake, and any small mistake may cost you a big loss. At the same time, nobody can be assured of success drawing on past experience of stock trading or commodity market.

Nevertheless this should not be any reason to put us off. Anything is possible. Every challenge can be handled if you’re prepared for it. Here are some tips from JustForex that are likely to help you know where to start.

Get some practice before trading real money

One of the common mistakes FOREX of beginners is trading on the real accounts from the start. However, in most cases, such a hurry only leads to disappointment. It is better to get some practice on a Demo account with virtual money having real trading conditions. Once you complete a few trading sessions on the forex trading practice account, you feel confident about it.

Manage your money well

Have a rational attitude during your trading activity. Don’t put 100% of your trading capital per trade at one order. It’s always risky to lose everything after so much time of profitable deals. For instance, set a limit on the amount of money you may use for one order. 3-5% of all your capital per trade at risk.

Put a stop loss to each trade

Successful traders give a lot of attention to The Stop Loss option. Don’t expect that all your trades will be closed profitably. Trading is a slow and steady process where you have to shorten losses. Book the losses to each trade and move ahead.

These three important tips will help in turning FOREX trading a profitable affair. Happy Trading!

Pivot (invalidation): 1229.00

Our preference Short positions below 1229.00 with targets at 1218.50 & 1211.00 in extension.

Alternative scenario Above 1229.00 look for further upside with 1235.00 & 1238.00 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 7600

Our preference Long positions above 7600 with targets at 7900 & 8020 in extension.

Alternative scenario Below 7600 look for further downside with 7435 & 7230 as targets.

Comment The RSI advocates for further upside.

Eurozone PMI manufacturing rose to 55.1 in July, up from 54.9 and beat expectation of 54.6. However, PMI services dropped to 54.4, down form 55.2 and missed expectation of 55.1. PMI composite dropped to 54.3, down from 54.9 and hit a 2-month low.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

"The flash PMI suggests the eurozone started the second half of the year on a relatively soft footing, indicative of GDP growth slowing in the third quarter. The July reading is consistent with quarterly GDP growth of 0.4%, down from a 0.5% expansion indicated by the surveys for the second quarter.

"The renewed slowdown comes as a disappointment, confirming suspicions that June's rebound was temporary, largely due to businesses in some countries making up for an unusually high number of public holidays in May.

"Given the waning growth of new business and further slide in business optimism, the outlook has also deteriorated, notably in manufacturing, where the surveys saw worries about trade wars intensify markedly in July.

"While there are signs that improving domestic demand in many countries is helping drive robust service sector expansion and support manufacturing, a worsening picture for export growth is clearly having an increasingly detrimental effect on manufacturing.

"The big question going forward will be the extent to which domestic demand can remain sufficiently resilient to cushion the eurozone economy from the potential adverse impact of an escalating trade war on exports. For now, the health of domestic demand seems encouragingly solid, but any feedthrough of trade worries to other sectors will be a key area of concern to an already cloudier-looking outlook."

Full release here.

The euro continues to reverse early-week gains against the US dollar, as trade war fears help to underpin strength in the greenback. The EURUSD pair is currently trading below the 1.1700 level and remains at risk of further losses if price slips below the 1.1681 level. The MACD indicator is also starting to turn lower across the four-hour time frame, while the price is also starting to approach the 200-period moving average on the mentioned time frame.

The EURUSD pair is only intraday bullish while trading above the 1.1681 level, key resistance is found at the 1.1724 and 1.1750 levels.

If the EURUSD pair falls below the 1.1681 level, sellers will likely test towards the 1.1650 and 1.1630 support levels.

The British pound is starting to trade towards key weekly support against the US dollar on Tuesday, as the greenback starts to recover higher. The GBPUSD pair is currently hovering around the key 1.3100 support level, with the price so far finding interim technical support from the 1.3080 level. Sellers will likely target further losses below the 1.3080 level, while buyers will target the 1.3155 resistance level.

The GBPUSD pair is bearish while trading below the 1.3100 level, key technical support is found at the 1.3080 and 1.3050 levels.

If the GBPUSD pair holds above the 1.3100 level, key resistance is found at the 1.3155 and 1.3194 levels.

Bitcoin extended the gains started a week ago and is currently trading at $7700. This is the highest level since May 23. It is also an extension to the 20% gains the cryptocurrency had a week ago. The current rally is mostly because of the expected demand when large institutions and asset management companies start investing in the digital currencies.

Just last week, Blackrock announced that it would set up a working group to explore investing in Bitcoin and other blockchain products. A report by Grayscale – which manages more than $2 billion – said that more institutional managers are moving to investing in cryptocurrencies. Traders believe that these deep-pocketed investors will bring more demand to cryptocurrencies, which will push the price higher.

Still, Bitcoin is a shadow of its former self. Last year, it was among the best-performing assets, gaining by more than 1000%. This year, it has lost more than 60% of the value as traders started worrying about regulations and the security of their Bitcoins. Further, the demand expected by the traders after Bitcoin futures came online has not materialized.

The BTC/USD pair is trading at $7,700, which is above the 50 and 100-day Exponential Moving Average (EMA). This price is an important resistance level as shown in the chart below. It is also at the 50% Fibonacci Retracement level. Further upward moves above this level will likely see the price test the important level of $8,000.

Economic data are back in focus Tuesday, with a deluge of PMI reports from Europe and North America scheduled to make headlines. As we've reported before, the purchasing managers' index (PMI) provides a broad overview of manufacturing and services activity for some of the world's largest economies.

Between 06:45 GMT and 08:00 GMT, IHS Markit will release a spate of Eurozone PMIs covering France, Germany, Italy and the broader Eurozone. The Eurozone Composite PMI, which captures manufacturing and services conditions combined, likely edged down to 54.8 in July from 54.9 in June. Germany's Composite Index is forecast to hold steady at 54.8.

On the PMI scale, a reading above 50 signals expansion in economic activity.

Shifting gears to North America, the Federal Housing Finance Agency (FHFA) will release the housing price index at 13:00 GMT. The May index is projected to grow 0.4% following a 0.1% uptick the month before.

Markit will release preliminary US PMI data at 13:45 GMT. The Composite Index is forecast to edge down to 56.0 from 56.2 in July.

At 14:00 GMT, the Richmond Federal Reserve Bank will release the July version of its manufacturing index. The monthly gauge is forecast to fall two points to 18.

Commodity traders will also be keeping tabs on weekly crude inventory data courtesy of the American Petroleum Institute (API). The API report is a precursor to the official data release from the US Energy Information Administration (EIA) on Wednesday.

EUR/USD

Despite showing newfound strength in recent days, EUR/USD maintains a distinctly downward bias so long as prices hold below the 1.1800 target. At the time of writing, the exchange rate is trading at 1.1692, where it was little changed compared with the previous close. In terms of technical levels, a recovery all the way past 1.1790 is needed to ignite a sustained bullish rally, according to analysts at Danske Bank. On the opposite side of the ledger, immediate resistance is found near 1.1711, which represents the 55-day MA.

GBP/USD

Cable has taken advantage of broad dollar weakness in recent days but has been unable to make a decisive break beyond the mid-1.3100 range. GBP/USD is once again trading on the cusp of 1.3100 with immediate resistance located at 1.3150. The pair is likely to find support at 1.3070.

USD/JPY

The US dollar resumed its descent against the yen on Tuesday, with the USD/JPY exchange rate sliding 0.1% to 111.20. The pair is now eyeing the 21-day simple moving average (SMA) and a move below that level could embolden the bears. Earlier in the day, Markit reported an unexpected decline in Japan's monthly manufacturing PMI. The manufacturing index slid to 51.6 from 53.0 in June.

The Gold is forming a potential Head and Shoulders pattern close to D H4 support. The pattern will become valid if the price rejectes from 1227.90-1231.45 zone. In that case sellers will resume control and the price should reach 1220.89. If the price breaks 1217.30 to the downside, the way to 1211.58 will be open.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)