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The US dollar fell against all the major currencies last week and reached the lowest level against the euro since October 2018. The five-week slump in the Dollar Index is the longest since late 2017/early 2018. Although we were early dollar bears, the downside momentum appears stronger than the momentum indicators suggested last week. Even shallow dollar bounces have been sold. By and large, as we will see below, the momentum indicators continue to suggest a consolidative or corrective phase may be near. Yet, there does appear to have been a material shift in sentiment toward the dollar. Speculators in the futures market have been net long euros, for example, since mid-March. The change seems to be among asset managers, judging from flow reports and surveys, and interpolating from the options market, some levered participants as well. It also appears that the North American market is leading the current move. The dollar's decline should not be exaggerated. The year-to-date move has been modest. The strongest major currency has been the Swedes krona, which often acts as a high-beta euro. It has risen nearly 6% against the US dollar. Despite intervention by the Swiss National Bank, in the face of US threats to cite it as a currency manipulator, the franc's 4.5% gain in second-place behind Sweden. Meanwhile, Sweden's neighbor, Norway, sports the weakest of the major currency, with almost a 4.7% decline. Sterling's roughly 3.8% decline puts it just ahead of the Norwegian krone. The dollar's modest decline is not a material factor for policy or trade, even if the momentum gets noticed. Dollar Index: The downward pressure on the Dollar Index is evident in the fact that it has risen in four sessions this month, and once in the last 11 sessions, and none last week. It is at its lowest level since October 2018 and finished the week on its lows. For the better part of three weeks, it has been sliding down with the lower Bollinger® Band (~94.55). The next area of chart support is seen in the 93.75-94.00 area. The momentum indicators are still falling but stretched. Euro: The euro will take a six-day advancing streak into next week. It not only pushed above $1.15, but it crossed and settled above $1.16 as well at new highs for the move (~$1.1645). The euro finished last month, near $1.1230. Although some narratives link the euro's strength to the EU Recovery Plan, July will be the third consecutive monthly gain for the euro, the longest such move in three years. The MACD is still trending higher, while the Slow Stochastic is arching, set to turn down in the coming days. Rarely has there been a session in the last few weeks that the euro did not bump against or through the upper Bollinger Band. Initial support may be in the $1.1550-$1.1580 bands. Japanese Yen: With the Tokyo market closed before the weekend for the Health and Sports Day holiday, foreign exchange dealers took the dollar below the JPY106 level that has marked the floor since March. The JPY105.20 area marks the (61.8%) retracement objective of the rally from the March low (~JPY101.20), and a move below JPY105 would begin escalating the pain of yen strength on many Japanese companies. The yen's strength, as exaggerated as it may be without Tokyo, coupled with the weakness in Asian and US shares ahead of the weekend, warning of the risk of catch-up on Monday. Resistance now will likely be seen ahead of previous support around JPY106.65. British Pound: Sterling made new highs for the month, a little shy of the $1.28 level. The June high, which is highest since the panic struck in March, was a tad above $1.28 and near the upper Bollinger Band (~$1.2810). The next important chart point is not until closer to $1.30. The momentum indicators are stretched but still moving higher. Support is likely to be found near $1.2700. The euro is firm against sterling. It bounced smartly off the GBP0.9000 level tested following a reversal at the start of the week after reaching almost GBP0.9140. The euro needs to take out the GBP0.9180-GBP0.9200 area to be meaningful. Canadian Dollar: The US dollar convincingly broke below the CAD1.3500 shelf that had been forged ahead of the 200-day moving average (~CAD1.3515). It fell to around CAD1.3350 before consolidating ahead of the weekend by straddling CAD1.3400. The June low was near CAD1.3315. The greenback fell every day last week versus the Canadian dollar for a 1.3% decline. It finished last month by CAD1.3580. The momentum indicators are just about to enter the over-extended territory. A possible head and shoulder pattern may have been carved since mid-June, and if valid, 1) it would project toward CAD1.3200, and 2) suggests the CAD1.3500 area offers resistance. Australian Dollar: The Aussie shot up through $.0.7180, its highest level since April last year. A little profit-taking was seen in the previous two sessions, and the Aussie found bids ahead of the $0.7050 area, now expected to be supported. It managed to hold to a solid 1.4% gain for the week to extend its streak to the fifth consecutive week and put it into positive territory for the year. A couple of hundredths of a cent decline in the face of the nearly 4% drop in the Shanghai Composite illustrates a more significant point we have made about the decoupling of the two. Still, the technical indicators are flashing a yellow sign as they have failed to confirm the new highs. Mexican Peso: The dollar's roughly 0.8% decline against the peso last week gave back the previous two weeks of gains and maintaining the broadly sideways trading range since mid-June. The greenback has given up nearly 3/4 of the prior month's 3.6% gain. The Slow Stochastic appears curling higher, while the MACD has almost flatlined. The lower volatility makes Mexico attractive for carrying trades, but the strength of the Swiss franc and yen discourage their use, leaving the dollar as arguably the cleanest expression. A near-term downtrend line from earlier this month held before the weekend and begins the new week near MXN22.60. The month's low so far is about MXN22.15. Chinese Yuan: The dollar posted a key upside reversal against the yuan in the middle of last week, making a new low for the move (~CNY6.9650) before shooting up and closing above the previous day's high. Follow-through buying was seen in the last couple of sessions, and the dollar finished the week near CNY7.02, a two-week high. Linking the yuan's weakness to the political tit-for-tat consulate shutdowns does not necessarily mean manipulation by Chinese officials. The operative channel could be the equity market where the Shanghai Composite has fell by a little more than 4% over the past two sessions, and the Shenzhen Composite shed 5%. The momentum indicators favor dollar gains, but with the greenback's losses before the weekend in North America warns of the likelihood of a lower fix. Gold: The rally continued with the yellow metal rising every day last week, reaching nearly $1906.50 at the end of last week. It will take a six-day rally into the last week of July. Its resilience in the face of the heavier tone in the equity markets will support the arguments seeing it has a hedge to equities. There are two obvious targets. The first is the record high from 2011 a little above $1921, and the other is the round, psychological level of $2000. It is difficult to talk about resistance in never-before-seen prices, but if our view of interest rates and the turn in the dollar cycle is fair, then $2500 might not seem unreasonable. Oil: After rallying to start the week and selling off in the second half, the September WTI contract finished the week little changed a little below $41 a barrel. The week's high was about $42.50, which closed the breakaway gap created in the March disruption. Around $41.70, the contract reached the middle of this year's range. Before the next retracement (61.8%) near $46.35 comes the 200-day moving average (~$44.35). The MACD did not confirm the high. The Slow Stochastic did but has still turned lower. This month, September WTI has not closed below its 20-day moving average ($40.60) and offered support ahead of the weekend. US Rates: Disappointing preliminary PMI on the heels of the first increase in weekly jobless claims, and the end of the S&P 500 three-week rally saw the 10-year yield slip to 55 basis points at the end of last week, the lower end of the range since March. Still, it managed to close around 58 bp to end a four-day decline. The focus is on the Federal Reserve meeting and the negotiations over the next fiscal package, while the virus sets the general parameters. The 10-year yield has drifted lower for the past three weeks after finishing June near 65 bp. The two-note yield has been in a three basis point range this month (~13.5-16.5). The effective (weighted) average fed funds rate, which the futures contract settle against, has quietly crept higher. Both last week and the previous week, the effect rate rose to 10 bp. Recall that as recently as June 1, it was at five basis points. The secured overnight financing rate is also trading firmly around 12-13 bp at the high over the past two weeks. Many are linking it to the Fed's decision to lift the minimum bid rate for its repo facility earlier this month. Credit: TopAsiaFX

FOREX trading might sound to you like something unique, but it’s not difficult to explain because most people consider it tough to understand. Though it is true, this is different from what you normally use in other capital markets, but the ideas behind it are the same; to get as much profit as possible in a very short time. The Forex exchange market is the largest market in the world without anyone approaching it. It is traded in trillions of dollars a day all the time, so it is attractive to both; traders who trade in small or larger sizes because Forex trading is relatively easy to complete your trade and the cost of doing business is much lower. So, without any further ado, let’s dive right into Forex trading and how it works. What is Forex trading? Forex is a synonym of foreign exchange, so basically it is trading one currency with another currency. Most of us have probably done this kind of exchange, manually if not electronically. For example, if you go on holiday to Malaysia, you must convert your money to Malaysian ringgit, or if you go to the US for a vacation; You will spend USD in the US. This is a form of Forex trading where you sell your own domestic currency for foreign currencies. How does a Forex broker work? Forex brokers are basically intermediaries who buy and sell on behalf of someone. Every time you work through a broker, he will get some money as a commission called a spread. Now, the great thing about the Forex market today is that the spreads are far lower because Forex brokers are very competitive businesses. When you open an account with a good broker like Exness, they will do what is known as KYC, called Know Your Clients. So, that means you have to show some credentials to ensure that you have good credit, especially if they give you leverage (lend money to trade). Who trades Forex and why? On a much larger scale, trade is carried out by central banks, large banks, companies, governments, and retail traders. Central banks intervene in the foreign exchange market to bring a balance in the currency so that they remain competitive in exports. So, they sell their own domestic currency on a large scale to buy whatever relevant raw materials they need from other countries. Finally, retail traders; like you or me, speculate in the Forex market for profit. The advantage of Forex trading High Liquidity So, every time you place an order on the Forex market, you don’t need to worry about completing your trade because there are many buyers and sellers in the market. According to the latest survey, Forex traders have jumped close to 10 million in the market. Risk management Forex allows you to trade very small lot sizes. Unlike stocks, where there is a large risk involved, in Forex, you don’t need to trade big to get big profits. Open 24/7 Forex gives you the option to trade whenever you want, Monday to Friday. You can wake up early or late at night. You can go home from your daily work, and the Forex market will remain open and in full bloom. So, in the end, Forex trading is now on the edge of online trading. Though many people still don’t know how it works. So, for them, if you have any question in my mind regarding Forex trading then please let me know.

The value of different currencies around the world depend on political events, economic and global social and fluctuates regularly. This allows traders engaged fluctuations in foreign exchange or Forex to earn money by basing the sale or purchase of currency on speculation the future value of a particular currency. Today the Forex market is worth more than $ 6 trillion and the largest financial market in the world. The global Forex market is important for the sustainability of international trade relations, import and export, and the global economic framework and provides a livelihood for thousands of Forex traders around the world. Read on to learn more about - - Forex trading strategy - The benefits of Forex trading - 5 best strategies for 19-20 First of all, what is Forex trading? Forex trading is the basis for all international transactions and exceeded the volume of futures or stock market trading. The purpose of Forex trading is to exchange one currency for another in the faith that the value of the currency received will increase in the future. What are the different Forex trading strategies? Forex traders use many strategies and methods of analysis to determine the best time to buy and sell currencies. Here are the most important strategies involved in Forex trading. Fundamental Analysis: Fundamental analysis looks at the integral indicator of the economy to understand if the currency is likely to be undervalued or overvalued in the future. This method can be a little daunting because it involves a lot of data elements of a country's economy. This method also analyzes currency inflows and outflows in addition to economic news releases in the country. Technical Analysis: Many traders favor this strategy as it gives a decent insight into the predictive value of the currency. It involves reviewing past behavior and recently to predict the value of the currency in the future. Technical analysis involves a long list checklist for detecting small fluctuations in currency trends. It provides merchants with a visual and scientific basis to determine when to buy and sell currencies. Trade Trends: This method involves identifying a trend of increase or decrease in the price movement of the currency. Using these trends to determine the best time to buy and sell currencies based on the strength of a trend. This method involves a variety of factors such as the moving average, the value of the currency now and the relative strength indicator to calculate trends. Swing Trading: This strategy looks to set up shop during the 'swing' trading-day period. This period is when the market registers the maximum activity. This strategy reduces the false price movements observed during the lean period. Breakout Trade: Trade Breakout identifies the entry point of various trades before trading. If the price of the currency broke out of its range, traders can assume that the trend will continue. Similarly, if the price falls below the range, traders will know better than to sell the currency. Why do you have to learn Forex trading? Here are the main reasons that should convince you to invest the time and money to pursue a course in Forex trading. It can serve as an additional income: Trading in foreign exchange can help you supplement your income from a steady job, which can ease your financial situation. However, it is important to note that it takes to build skills and intuition in the subject. It is less dependent on the labor market: It serves as a perfect source of income because they do not get a lot of the work rate or downsizing in the companies affected. You can choose the timing of your work: Unlike the stock market which is open for only six hours a day, the Forex market is open 24 hours for 5 days a week trading. This gives you the flexibility to choose your work schedule. It involves lower transaction costs: Due to less number of intermediaries in the business, Forex trading has significantly less transaction costs unlike other types of trading. This will reduce your expenses and increase your profit margins. You can work anywhere: You can access the Forex market from every part of the world as long as you have a computer and an internet connection to work. These days, it is even possible to trade when you travel with the help of a smartphone. While all of the strategies involved in Forex trading, it takes time and technical expertise to know which one will be used at certain times. Pursuing a short course on Forex trading can help you become an experienced trader or you can use some help from the expert traders such as using their signals. They are both professional and experienced as a result, they can provide you with the best Forex signals. It'll DEFINITELY improve your trading skills.