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.

GBPUSD – Weekly divergence points to downside correction

GBPUSD – Weekly divergence points to downside correction

Technical Analysis
It is without a doubt that the British Sterling has been one of the strongest performing currencies among the G7 since last year. Although the Kiwi Dollar has been gaining strength, the British pound has been consistent and steady over the year which makes it a prime currency pair to be long on. Since the start of the rally, traders who have been long have been aiming for the 1.7 level. So far, price has failed this level quite a few times, coming as close to 1.6995. While there have been dips during the course of the rally to 1.699 it cannot be justified to call these dips a correction. In this analysis, we present the GBPUSD correction to the downside along with a hedge trade in GBPJPY to offset any risks from the Cable's short term short trade. GBPUSD - Weekly Charts Analysis On th...
Crude Oil Analysis – Aiming for $110

Crude Oil Analysis – Aiming for $110

Technical Analysis
WTI Crude has been caught in a range since March 2014 within the limits of 104 and 98. Within this huge consolidation level, Crude has been making higher highs but the level of 104.53 remains a strong resistance level with price unable to break higher. In the larger perspective, since late 2013, Crude Oil has been rallying and the consolidation paints an ascending triangle pattern which is indicative in this context to be a continuation pattern. The ascending triangle gives a target to 110, with interim levels coming in at 107 and the current resistance of 104.5. The upward path can be charted with the median line, where we notice price hugging the median line, which could point to a short term correction towards the lower median line. After softly breaking the previous high at 104.46,
USDDKK Analysis – A long term short trade opportunity

USDDKK Analysis – A long term short trade opportunity

Technical Analysis
The US Dollar, Danish Kroner makes for an exotic currency pair to trade which usually misses the attention of many forex traders. From a technical perspective, the USDDKK paints a beautiful long term picture with current price action validating the technical pattern that has been formed. Starting with the weekly charts of USDDKK, we notice a very clear Head and Shoulders pattern that is formed, with the neckline coming in at 5.5740 region. The neckline was broken and price did drop a bit before retracing the moves and currently looks poised to test the neckline level. This brings us to the question of entry. While it is no brainer to short USDDKK from the neckline level, taking a more informed trade decision would help traders in gaining a better price for entering the market. ...
Introduction to using Line Charts

Introduction to using Line Charts

Trading Articles
Line charts are a form of chart type that takes into consideration the closing price for a particular period of time. It is the simplest form of plotting price on a chart and works in any markets. Perhaps the biggest advantage of using line charts is that this chart type works in any market, regardless of liquidity. The basic tenets of technical analysis are still applicable to line charts which make it a powerful yet simple chart type to use. The line chart is plotted along an X and Y axis, representing Time and Price and can be plotted in any time frame… from Monthly or yearly and down to the five or one minute chart. Line chart comparison with Candlestick and Bar Chart The chart above shows a comparison of the line chart along with a Bar chart and Candlestick chart. Notice that th
Gold Analysis – A great Risk/Reward Trade in the making

Gold Analysis – A great Risk/Reward Trade in the making

Technical Analysis
The debate between Gold bulls and bears could perhaps be laid to rest in this very clear descending triangle chart from the daily time frame. With Gold having clearly broken the support level at 1283.6, the only way for Gold to head is down south. ECB's monetary stimulus package might have given Gold a short term boost but provides a good opportunity to sell the rallies. In the chart above, the descending triangle gives a target of $1184.86. We notice a minor bullish rally coming into play just near 150% distance to the target. With descending (or ascending) triangles, this is a usual norm, which allows traders to take a more confident trend. The red dotted lines at 1271.75 and 1267.71 is the most likely place for Gold to end its retracement rally. This level also coincides with ...