Technical studies can be useful, but they can also be abused by traders. The biggest danger traders face when using charting tools is “analysis paralysis.†At some point, you have to make a decision about your trade, and simply adding more analytical tools that may just end up muddying the water does not necessarily increase your probability of success. “Indicator piling,†or adding several indicators to a single chart, will probably only obscure your real trading opportunities. Watch the video
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TOOLS: Technical Studies
REPORT: Technical Analysis: An Introduction to Chart Reading - Andrei Knight
REPORT: You Sure You Are Looking At Charts Properly? - Sam Seiden
BOOK: Essentials of Technical Analysis for Financial Markets - James Chen
Editors’ Picks
EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes
The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.
GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited
The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.
USD/JPY is looking for direction around 153.00 with key US data in focus
USD/JPY reversal from 153.70 has been contained above 152.70 on Tuesday. Major currencies are trading within narrow ranges amid thin trading volumes. Investors await the release of the US GDP and PCE Inflation figures to make decisions.
Editors’ Picks
AUD/USD holds lower ground below 0.7100, awaits FOMC Minutes
AUD/USD holds lower ground below 0.7100 in Wednesday's Asian session. Traders await more cues about the US Fed's rate-cut path before placing fresh directional bets. Hence, the focus will be on the FOMC Minutes, due for release later today, which will drive the US Dollar and the currency pair. In the meantime, the RBA's hawkish stance and a generally positive risk tone might continue to cap the Aussie's downside amid hopes for additional stimulus from China.
NZD/USD remains heavy near 0.6000 after dovish RBNZ hold
NZD/USD is attacking 0.6000, under heavy selling pressure early Wednesday, responding to the Reserve Bank of New Zealand's (RBNZ) dovish interest rate on hold decision. The RBNZ kept the OCR unchanged at 2.25%. Gowernor Anna Breman reinforced the dovish outlook at her debut press conference.
Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes
Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.
Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs
Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.
UK jobs market weakens, bolstering rate cut hopes
In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.
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