Welcome to the second part of our two-part series on market dynamics, where we explore how underlying supply and demand impact price action.
In Part 1, we examined how to spot the Accumulation phase of the market cycle, where institutional investors quietly build their positions. Today, we're delving deep into the Distribution phase, a crucial period where...
The bullish run in GBP/USD remains solid as official data released on Wednesday morning confirmed UK inflation remained unchanged at 2% in June. The release was actually a little stronger than anticipated as markets had hoped CPI would have dropped further to 1.9%, which would have been the lowest level since April 2021. Core inflation, which excludes volatile...
The drop in yields and the US dollar has been keeping gold supported. The precious metal reached a new all-time high on Tuesday at $2,470 as the dollar faces continued downside pressure. The momentum has attempted to continue building on the upside on Wednesday but the move has encountered some resistance around $2,480.
The softer CPI data on Thursday last week...
With Bitcoin surging to two-week highs on Monday, we’re going to shine a spotlight on the world’s largest cryptocurrency platform: Coinbase.
Trump Seen as Pro Crypto Candidate
Monday’s rally in Bitcoin can be attributed to the attempted assassination on former President Donald Trump over the weekend. This incident has increased the likelihood of Trump...
It’s been a summer marked by escalating political tensions on both sides of the Atlantic for EUR/USD. The tumultuous French elections earlier in the month have been followed by an assassination attempt on former President Trump over the weekend. Against this backdrop of rising political tension, let’s examine the key levels to watch on EUR/USD this week.
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In this two-part series on market dynamics, we’ll delve into the concept of Accumulation — where institutions investors quietly build a position in a stock. Understanding and identifying this phase in the Market Cycle has the potential to give retail traders a much deeper understanding of price action.
Understanding Accumulation in the Market Cycle
The...
EUR/USD is attempting to build the gains for a fourth straight session as resistance at 1.0915 becomes evident. The pair will need to breach and consolidate above this level to avoid falling into a double-top pattern which would reignite the bearish pullback. Beyond this level, further resistance could arise around 1.0945 before attempting to reach the 1.10 level...
GBP/USD is seeing its strongest monthly performance since November last year. The bullish drive in the pair has been intact since the start of July as it attempts to breach the 1.30 mark for the first time in a year. The RSI has ventured into overbought territory but the appetite for further gains keeps the path of least resistance higher for the time being. This...
USD/JPY was holding up pretty well until Thursday when the June CPI data came in lower than expected. The Bank of Japan’s (BoJ) continuous dovish policy has meant the Japanese currency has been heavily sold against most majors as the carry trade has played against it. Even intervention in currency markets from Japanese officials has not been able to halt the...
Gold (XAU/USD) jumped almost 2% on Thursday after softer-than-expected US inflation was announced. The precious metal, which had been building gains for the past two weeks, saw increased buying interest as markets took the softer CPI reading as a step closer to rate cuts.
Earlier in the week, Fed governor Jerome Powell said that whilst the labour market had...
Gold (XAU/USD) jumped almost 2% on Thursday after softer-than-expected US inflation was announced. The precious metal, which had been building gains for the past two weeks, saw increased buying interest as markets took the softer CPI reading as a step closer to rate cuts.
Earlier in the week, Fed governor Jerome Powell said that whilst the labour market had...
The British Pound has maintained its bullish bias since the UK election build-up. The fact that the election seemed so easy and straightforward has given investors a vote of confidence in UK assets, especially at a time when there is quite a bit of political instability worldwide. That’s not to say that the new Labour government will not face challenges up ahead,...
Since mid-May, the FTSE 100 index has been in a consolidation phase. In this analysis, we'll build a picture of this phase by sequentially adding technical indicators to the daily candle chart of the FTSE 100. While technical indicators can provide valuable insights, overloading a chart with too many can be overwhelming. We'll take a methodical approach to enhance...
Tesla's share price surged more than 27% higher last week following a series of positive developments that reignited investor confidence. Let’s take a look at what’s driving Tesla higher, and how to trade this burst of bullish momentum.
What’s driving Tesla higher?
Better-than-Expected Deliveries Report:
• Tesla's second-quarter vehicle deliveries...
With the Wimbledon tennis championships starting this week, it seems only appropriate that we take inspiration from tennis GOAT Roger Federer, whose wisdom extends far beyond the court.
It’s Only a Point
In a recent speech at Dartmouth College in the US, Roger Federer, a 20-time major winner, shared insights from his tennis career that resonate deeply with...
Last week, the S&P 500's attempt to break out to new highs ended in a dramatic reversal, forming a bearish engulfing pin-bar candle. This key technical pattern, alongside a negative RSI divergence, signals waning bullish momentum and raises the probability of a market pullback.
Failed Breakout and Bearish Indicators:
On Friday, the S&P 500 attempted to break...
USDJPY has pushed past 160 seemingly unfazed. This level has been targeted by buyers since the start of the bullish reversal last month. The fear of further intervention from Japanese officials has kept investors shy when approaching this level but once again the pair has pushed past it without triggering an immediate reaction from Japan, similar to what happened...
EUR/USD has gapped higher this morning following the results of the French parliamentary elections. Traders reacted positively to the news that Marine Le Pen’s far-right Rassemblement National (RN), despite winning the first round with 33.2% of the vote, is unlikely to secure an outright majority in the parliament. This outcome alleviated fears of political...
