Author: Editorial Team

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.
Variable spreads and why they matter

Variable spreads and why they matter

Trading Articles
Forex brokers nowadays offer a lot better choice of trading conditions for their customers. When it comes to spreads, brokers usually offer either fixed spreads or variable spreads. Fixed spreads are known to be the key giveaway for market markers, or brokers that operate a dealing desk or acting as a counter party and thus not widely preferred. Most ECN/STP or non dealing desk execution brokers however are known for their variable spreads. While this second option makes for a preferred choice for the more serious traders, it does come with its own disadvantages, which if the trader does not pay much attention to, could prove to be a very expensive mistake they would make. How variable spreads work? In order to understand if are getting a fair deal, it is important to understand how v...
Weekly Currency Index Technical Analysis – 12 January

Weekly Currency Index Technical Analysis – 12 January

Technical Analysis
Currency Index Notes AUDLFX Bullish candlestick pattern showing sharp reversal, but expecting momentum to fade as price approaches 1.59 or the region between 78.6% and 100% of the bearish flag retracement. Alternate view is that price could possibly turn around and just push higher. Conclusion: Safer to leave AUD pairs alone this week and see what price action dictates. CADLFX: After the previous week's bearish engulfing pattern, price followed through with a bearish close last week. Major risk comes from the dynamic support of the 52-week EMA and the trend line as well as the support/resistance at 1.6145 Canadian Dollar could probably resume its uptrend as long as the piercing line's low near 1.6017 is not breached. Daily charts formed a Doji on Thursday and the...
Weekly Currency Index Technical Analysis – 05 January

Weekly Currency Index Technical Analysis – 05 January

Technical Analysis
Currency Index Notes AUDLFX Bearish flag on weekly with reversal near 127.2%. Expecting a rally to 100% - 78.6% correction. No strong candlestick patterns noted Conclusion: Medium term bullish correction on a larger bearish trend. CADLFX Price broke out from a medium term trend line, dipped to retest break out level and resumes uptrend. Price action tricky as 3 weeks ago, PL pattern was formed, followed by last week's bearish engulfing/DCC pattern. Price above 52 EMA, so we could see a decline to test the 52 EMA + trend line confluence. Conclusion: Short term bearish on a larger bullish price action CHFLFX Price broke out from a major rising trend line, indicating a bearish shift to sentiment. After break out, price rallied to retest the break out l...
What is the TLTRO and how is it different to LTRO

What is the TLTRO and how is it different to LTRO

Financial Markets Explained
The ECB recently concluded its first round of TLTRO or targeted long term refinancing operations, which turned out to be anti-climatic. Against an estimated 150bn Euros up for grabs, banks managed to take only 82bn Euros in TLTRO loans from the ECB. The question that might come to one's mind is what is the TLTRO and how is it different from the regular LTRO scheme that is well in place by the ECB. The TLTRO was first announced at the ECB's June 2014 monetary policy meeting where ECB Chief, Mario Draghi unveiled a slew of measures to tackle the high exchange rate and the threat of deflation in the Eurozone. Back then, the ECB allocated a total of €400bn Euros in targeted long term refinancing operations to ease up liquidity in the Eurozone banks. How is TLTRO different to LTRO? The TLT
Identify trends correctly with the 4-week rule

Identify trends correctly with the 4-week rule

Trading Strategies
Trends in the currency markets are one of the most important and basic elements to trading. Incorrect recognition or interpretation of trends can have a devastating effect on traders. Like a slow moving trading, the equity can be easily depleted without knowing what happened until the last dollar disappears from your trading capital. Trends, however seem to carry an element of subjectivity and are well represented by the many confusing articles that seem to claim to be the authority on trends. So how does one define a trend and why is it important to figure out the trend first? Why you need a trend (when trading) A trend is defined as “a general direction in which something is developing or changing”. In the context of the currency markets, trends are nothing but the general direction in