Daily Signals, Fundamental Analysis and Recommendations from PaxForex

[PaxForex]

Do you follow your trading rules

Traders write their trading rules based on what they have learn from the markets. In fact, trading rules are often condensed market wisdom. For new traders, trading rules offer a compass to navigate the troubled market waters. For advanced traders, trading rules open perspectives.The truth about forex is that it can be an intense and stressful undertaking that requires a strong control of your emotions. Learning to trade forex takes patience – it will take you time before you master the basics.

Those who lack discipline or make decisions that are not carefully thought through will quickly find themselves in a negative investment position. Those who do not adhere to sound investment principles or who allow emotion to govern their thinking will quickly find themselves losing a grip on their investments. However, those who follow sound investment principles will reap the benefits of one of the world's most liquid and influential markets.

One simply cannot succeed in trading without discipline. In order to be consistently profitable, you must have strict rules of operation in regard to your trading, and you must consistently (i.e., all the time) follow them. Follow your strategy, follow your trading rules, especially risk management and money management rules and you will be virtually printing money in your account. Forget your strategy and you will be virtually throwing money out the window.

Plan your trade so you can trade your plan. Preparation is the mental dry run of your potential trades - a kind of dress rehearsal. By planning your trade in advance, you are setting the ground rules, as well as your limits. If you know what you are looking for and how you plan to act if the market does what you anticipate, you will be able to be objective and stand aside from the fear/greed cycle.

Because trading is always full of emotions, you must have a trading strategy which includes a set of rules you stick to. This will help protect you from yourself. Just because the forex market is online twenty-four hours a day does not mean that you have to trade all that time. If you are doubtful, do not trade at all. Instead, analyze the market and use the knowledge you get to make more profitable trades in the future.

 

[PaxForex]

EURGBP Fundamental Analysis – September 13th 2016

Here are the key factors to keep in mind today for Euro trades:

• German CPI: The Final German CPI for August was reported flat at 0.0% monthly and increased by 0.4% annualized. Economists predicted a flat reading of 0.0% monthly and an increase of 0.4% annualized. Forex traders can compare this to the previous German CPI for August which was reported flat at 0.0% monthly and which increased by 0.4% annualized.
• German Wholesale Price Index: The German Wholesale Price Index for August decreased by 0.7% monthly and by 1.2% annualized. Forex traders can compare this to the German Wholesale Price Index for July which increased by 0.2% monthly and which increased by 1.4% annualized.
• Eurozone Employment: Eurozone Employment for the second-quarter increased by 0.4% quarterly and by 1.4% annualized. Forex traders can compare this to Eurozone Employment for the first-quarter which increased by 0.4% quarterly and by 1.4% annualized.
• German ZEW Survey and Eurozone ZEW Survey: The German ZEW Survey Current Situation for September was reported at 55.1 and the German ZEW Survey Economic Sentiment at 0.5. Economists predicted a figure of 56.0 and 2.5. Forex traders can compare this to the German ZEW Survey Current Situation for August which was reported at 57.6 and the German ZEW Survey Economic Sentiment which was reported at 0.5. The Eurozone ZEW Survey Economic Sentiment for September was reported at 5.4. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment for August which was reported at 4.6.

Here are the key factors to keep in mind today for British Pound trades:

• UK CPI: The UK CPI for August increased by 0.3% monthly and by 0.6% annualized. Economists predicted an increase of 0.4% monthly and of 0.7% annualized. Forex traders can compare this to the UK CPI for July which decreased by 0.1% monthly and which increased by 0.6% annualized. The Core CPI for August increased by 1.3% annualized. Economists predicted and increase of 1.4% annualized. Forex traders can compare this to Core CPI for July which increased by 1.3% annualized.
• UK PPI: The UK PPI Input for August increased by 0.2% monthly and by 7.6% annualized. Economists predicted an increase of 0.6% monthly and of 8.1% annualized. Forex traders can compare this to the UK PPI Input for July which increased by 3.1% monthly and by 4.1% annualized. The UK PPI Output for August increased by 0.1% monthly and by 0.8% annualized. Economists predicted an increase of 0.3% monthly and of 1.0% annualized. Forex traders can compare this to the UK PPI Output for July which increased by 0.3% monthly and by 0.3% annualized. The UK PPI Core Output for August increased by 0.2% monthly and by 1.3% annualized. Economists predicted an increase of 0.2% monthly and of 1.3% annualized. Forex traders can compare this to the UK PPI Core Output for July which increased by 0.4% monthly and by 1.0% annualized.

Should price action for the EURGBP remain inside the or breakdown below the 0.8450 to 0.8500 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.8475
• Take Profit Zone: 0.8050 – 0.8100
• Stop Loss Level: 0.8650

Should price action for the EURGBP breakout above 0.8500 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.8550
• Take Profit Zone: 0.8650 – 0.8725
• Stop Loss Level: 0.8500

 

[PaxForex]

Analysis on USDCAD 14.09.2016

The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.

If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 1.3190
• Take Profit Level: 1.3280 (90 pips)

If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.3125
• Take Profit Level: 1.3045 (80 pips)



GOLD
Possible short position in the breakdown of the level 1319

EURUSD
Possible short position in the breakdown of the level 1.1200

USDCHF
Possible short position in the breakdown of the level 0.9730

GBPUSD
Possible short position in the breakdown of the level 1.3160

 

[PaxForex]

Apple stocks ready to rise after iPhone 7 release

After presenting to a narrow audience of a new product by Apple - iPhone 7, which goes on mass sale on September, 16, PaxForex conducted a pretty impressive work in respect of Apple Inc. shares forecast and came to the conclusion that the release of the new smartphone can significantly increase the size of portfolio of our traders. We believe that the shares of the giant will rise to a target of $125.

As it is known, PaxForex has long been successfully providing its clients with stocks trading opportunities of the biggest companies in the world. Apple is just one of them, but at the moment it is the most popular among our traders.

In order to provide a diversity of opinions from different businesses, PaxForex decided to talk with the analysts of some other companies and find out their opinions about the future of Apple stocks after the start of massive sales of iPhone 7.

We were a bit surprised, but most forecasters, even the most skeptical, recommend cautious or active purchases of Apple shares.

One of the analysts working for the NASDAQ 23, did not want to even hear about any cautious purchases and recommended the immediate purchase of shares at the current level of $108.11.

By the way, just for today, Apple shares rose by 2.51%, which already gives fairly optimistic signals to investors, waiting for the right moment. We believe that the new high-quality iPhone will return Apple to a good level of growth this year.

Analysts at BMO Capital told that the design of a new device incrementally improved, but has not undergone fundamental changes compared to the iPhone 6S. At the same time, a large amount of functionality has been changed under the expectation of permanent and potential clients.

The BMO Capital believe that after the beginning of massive sales a very large number of investors will buy Apple shares, which according to their forecasts have growth potential of 38-39% or even higher.

Goldman Sachs thinks Apple product will meet the expectations of customers by 100%, and forecast the stocks growth of this technology giant to $124. Recommendations for traders still the same - to buy.

Managers of Citigroup were a little surprised by the high prices for the new model but came to almost the same conclusions. According to them, traders will definitely regard this fact as a positive, given the high expectations of the total profit from sales of the new iPhone. The Citigroup believe that Apple stock will rise to a level of $120.

In summary, PaxForex recommends that those who are not standing in queues, waiting to buy first a new model of the famous device, not to miss the moment and do a much more interesting thing - trading the shares of the manufacturer.

So you can [URL deleted] Open account and rise with Apple shares together
or
if you have PaxForex account, [URL deleted] Deposit it and trade shares already today.

You MUST do something!

 

[PaxForex]

AUDUSD Fundamental Analysis – September 15th 2016

Here are the key factors to keep in mind today for Australian Dollar trades:

• Australian Consumer Inflation Expectations:Australian Consumer Inflation Expectations for September where reported at 3.3%. Forex traders can compare this to Australian Consumer Inflation Expectations for August which were reported at 3.5%.
• Australian Employment Report: The Australian Employment Change for August was reported at -3.9K. Economists predicted a figure of 15.0K. Forex traders can compare this to the Australian Employment Change for July which was reported at 25.3K. The Unemployment Rate for August was reported at 5.6%. Economists predicted a reading of 5.7%. Forex traders can compare this to the Unemployment Rate for July which was reported at 5.7%. 11.5K Full-Time Positions were created in August and 15.4K Part-Time Positions were lost. Forex traders can compare this to the loss of 46.1K Full-Time Positions and the creation of 69.6K Part-Time Positions which were created in July. The Labor Force Participation Rate for August was reported at 64.7%. Economists predicted a reading of 64.9%. Forex traders can compare this to the Labor Force Participation Rate for July which was reported at 64.9%.
• Australian Motor Vehicle Sales: Australian Motor Vehicle Sales for August increased by 0.1% monthly and by 2.9% annualized. Forex traders can compare this to Australian Motor Vehicle Sales for July which decreased by 1.4% monthly and which increased by 1.3% annualized.

Here are the key factors to keep in mind today for US Dollar trades:

• US Advanced Retail Sales: US Advanced Retail Sales for August are predicted to decrease by 0.1% monthly and Retail Sales Less Autos are predicted to increase by 0.2% monthly. Forex traders can compare this to US Advanced Retail Sales for July which were flat at 0.0% monthly and to Retail Sales Less Autos which decreased by 0.3% monthly. Retail Sales Less Autos and Gas for August are predicted to increase by 0.3% monthly and Retail Sales Control Group are predicted to increase by 0.4% monthly. Forex traders can compare this to Retail Sales Less Autos and Gas for July which decreased by 0.1% monthly and to Retail Sales Control Group which were flat at 0.0% monthly.
• US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of September 10th are predicted at 265K and US Continuing Claims for the week of September 3rd are predicted at 2,150K. Forex traders can compare this to US Initial Jobless Claims for the week of September 3rd which were reported at 259K and US Continuing Claims for the week of August 27th which were reported at 2,144K.
• US Industrial Production and Manufacturing Production: US Industrial Production for August is predicted to decrease by 0.2% monthly and US Manufacturing Production by 0.3% monthly. Forex traders can compare this to US Industrial Production for July which increased by 0.7% monthly and US Manufacturing Production which increased by 0.5% monthly. Capacity Utilization for August is predicted at 75.7%. Forex traders can compare this to Capacity Utilization for July which was reported at 75.9%.
• US Business Inventories: US Business Inventories for July are predicted to increase by 0.1% monthly. Forex traders can compare this to US Business Inventories for June which increased by 0.2% monthly.

Should price action for the AUDUSD remain inside the or breakout above the 0.7425 to 0.7450 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.7450
• Take Profit Zone: 0.7775 – 0.7825
• Stop Loss Level: 0.7350

Should price action for the AUDUSD breakdown below 0.7350 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.7325
• Take Profit Zone: 0.7150 – 0.7200
• Stop Loss Level: 0.7425

 

[PaxForex]

Analysis on Apple 15.09.2016

The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.

If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 113.00
• Take Profit Level: 118.50 (550 pips)

If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 110.50
• Take Profit Level: 109.50 (100 pips)



GOLD
Possible short position in the breakdown of the level 1318

USDJPY
Possible long position at the breakout of the level 101.90

USDCHF
Possible short position in the breakdown of the level 0.9700

GBPUSD
Possible short position in the breakdown of the level 1.3130

 

[PaxForex]

What is Forex Copy Trading

Unlike mirror trading, a method that allows traders to copy specific strategies, copy trading links a portion of the copying trader's funds to the account of the copied investor. Any trading action made thenceforth by the copied investor, such as opening a position, assigning Stop Loss and Take Profit orders, or closing a position, are also executed in the copying trader's account according to the proportion between the copied investor's account and the copying trader's allotted copy trading funds.

These days, most decent traders would have their performance displayed for the world to see and better yet, for anyone to copy. There are 2 main groups of forex traders, the first are those who like to attendforex trading seminars and attempt to trade currencies manually on their own. The second group are those who just want to make money with as little learning as possible. For the latter group trade copying or mirror trading is the perfect solution.

The way copy trading is conducted can be widely variable on the platform you choose. However, the basic principle remains the same. You invest a part of your portfolio in a certain trader and copy all their trades in a percentage-based manner. In the interest of diversification, most sites wouldn’t allows you to invest more than 20% of your portfolio in the hands of a single trader. This is a very good policy because sometimes traders seem better than they are or they simply hit a bad streak. When that happens, you don’t want to have invested too much in them.

If you can explore various trade copy services you can find out some key challenges when utilizing such websites: You will realize that many of the traders on such sites are punting and betting that their trader is successful once they begin copying their trades, and have absolutely no idea how or what the trader is trading. There is habit of a herd mentality with the assumption that a trader with many followers should be good. There is often insufficient information on such sites for anyone to make an informed decision as to whether or not to invest in such systems.

At the end of the day, it is still a human at the other end managing trades. Even if you are copying an expert advisor, there is a person who is ensuring the EA stays online. Since the person you are copying is often half way around the world, there is always the chance that he or she makes a mistake which wipes out the account. In other words, you can’t really know who you are investing with.

 

[PaxForex]

NZDUSD Fundamental Analysis – September 16th 2016

Here are the key factors to keep in mind today for New Zealand Dollar trades:

• New Zealand ANZ Job Advertisements: New Zealand ANZ Job Advertisements for August increased by 3.1% monthly. Forex traders can compare this to New Zealand ANZ Job Advertisements for July which increased by 1.4% monthly.
• New Zealand ANZ Consumer Confidence: New Zealand ANZ Consumer Confidence for September increased by 2.8% monthly to 121.0. Forex traders can compare this to New Zealand ANZ Consumer Confidence for August which decreased by 0.4% monthly to 117.7.

Here are the key factors to keep in mind today for US Dollar trades:

• US CPI and Core CPI: The US CPI for August is predicted to increase by 0.1% monthly and by 1.0% annualized. Forex traders can compare this to the US CPI for July which was reported flat at 0.0% monthly and which increased by 0.8% annualized. The US Core CPI for August is predicted to increase by 0.2% monthly and by 2.2% annualized. Forex traders can compare this to the US Core CPI for July which increased by 0.1% monthly by 2.2% annualized.
• US Michigan Consumer Confidence: US Michigan Consumer Confidence for September is predicted at 90.6. Forex traders can compare this to US Michigan Consumer Confidence for August which was reported at 89.8.

Should price action for the NZDUSD remain inside the or breakdown below the 0.7275 to 0.7325 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.7300
• Take Profit Zone: 0.6875 – 0.6925
• Stop Loss Level: 0.7400

Should price action for the NZDUSD breakout above 0.7325 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.7350
• Take Profit Zone: 0.7475 – 0.7525
• Stop Loss Level: 0.7300

 

[PaxForex]

Analysis on Alibaba 16.09.2016

The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.

If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 105.00
• Take Profit Level: 108.50 (350 pips)

If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 102.20
• Take Profit Level: 101.20 (100 pips)



GOLD
Possible short position in the breakdown of the level 1308

USDJPY
Possible long position at the breakout of the level 102.30

USDCHF
Possible long position at the breakout of the level 0.9790

GBPUSD
Possible short position in the breakdown of the level 1.3115

 

[PaxForex]

Analysis on EURUSD 19.09.2016

The price is below the moving average 20 MA, indicating the downward trend.
Average in the MACD is below the zero level.
The oscillator Force Index is below the zero level.

If the price rebound from resistance level, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.1145
• Take Profit Level: 1.1045 (100 pips)

If the level of resistance is broken, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 1.1180
• Take Profit Level: 1.1240 (60 pips)

GOLD
Possible long position at the breakout level 1317

GBPUSD
Possible short position at the breakdown level 1.2985

USDJPY
Possible short position at the breakdown level 101.90

USDCHF
Possible long position at the breakout level 0.9820

 

[PaxForex]

Analysis on GBPNZD 20.09.2016

The price is below the moving average 20 MA and 200 MA, indicating the downward trend.
Average in the MACD is below the zero level.
The oscillator Force Index is below the zero level.

If the price rebound from resistance level, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.7700
• Take Profit Level: 1.7400 (300 pips)

If the level of resistance is broken, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 1.7800
• Take Profit Level: 1.7880 (80 pips)

GOLD
Possible long position at the breakdown level 1318

GBPUSD
Possible short position at the breakdown level 1.2990

EURUSD
Possible long position at the breakdown level 1.1215

USDCHF
Possible short position at the breakdown level 0.9750

 

[PaxForex]

Disadvantages of Forex Backtesting

Backtesting is a term used in oceanography, meteorology and the financial industry to refer to testing a predictive model using existing historic data. Backtesting is a kind of retrodiction, and a special type of cross-validation applied to time series data. In a trading strategy, investment strategy or risk modeling, backtesting seeks to estimate the performance of a strategy or model if it had been employed during a past period. This requires simulating past conditions with sufficient detail, making one limitation of backtesting the need for detailedhistorical data.

Backtesting has historically only been performed by large institutions and professional money managers due to the expense of obtaining and using detailed data sets. However, backtrading is increasingly used on a wider basis and independent web-basedbacktesting platforms have emerged. Backtesting, like any other modeling is limited by potential overfitting. This means that it is often possible to find a strategy that would have worked well in the past, but will not work well in the future.

Backtesting is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk. If the results meet the necessary criteria that are acceptable to the trader, the strategy can then be implemented with some degree of confidence that will result in profits. If the results are less favorable, the strategy can be modified, adjusted and optimized to achieve the desired results, or it can be completely scrapped.

That price patterns repeat themselves is a basic principle of technical analysis. By interpreting this principle to imply that the past performance of a trading strategy can guarantee or at least validate its returns in future markets, backtesting aims to weed out the less profitable tools and filter the most promising ones to be used in trading. But while it is popular, backtesting is made a questionable tool by the chaotic, and constantly changing nature of the markets. Not only does the quote change, but even the rules that define the quote also change, ensuring that a method valid today may not be very useful after the passage of a short while.

The belief that backtesting can help identify strategies with potential is common, but it is unsubstantiated byevidence or experience. The best way of testing a strategy is by testing its actual performance, which means that we should evaluate the actual gains and losses registered by using it, instead of hypothetical successes and failures in past situations. As long as the sums that are used for this purpose are small and leverage is sensible, the losses that may result are affordable, and even advisable as part of the learning process: a trader must surely learn how to lose, if he plans to have any chance of making profits.

 

[PaxForex]

Analysis on Verizon 21.09.2016

The price is below the moving average 20 MA and 200 MA, indicating the downward trend.
Average in the MACD is below the zero level.
The oscillator Force Index is below the zero level.

If the price rebound from resistance level, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.7700
• Take Profit Level: 49.50 (150 pips)

If the level of resistance is broken, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 52.00
• Take Profit Level: 51.20 (80 pips)

GOLD
Possible long position at the breakdown level 1323

GBPUSD
Possible short position at the breakdown level 1.2940

EURUSD
Possible short position at the breakdown level 1.1120

USDCHF
Possible short position at the breakdown level 0.9750

 

[PaxForex]

GBPUSD Fundamental Analysis – September 22nd 2016

Here is the key factor to keep in mind today for British Pound trades:

• UK CBI Trends Total Orders and CBI Trends Selling Prices: UK CBI Trends Total Orders for September are predicted at -5 and CBI Trends Selling Prices are predicted at 10. Forex traders can compare this to CBI Trends Total Orders for August which were reported at - and to CBI Trends Selling Prices which were reported at 8.

Here are the key factors to keep in mind today for US Dollar trades:

• US Chicago Fed National Activity Index: The US Chicago Fed National Activity Index for August is predicted at 0.13. Forex traders can compare this to the US Chicago Fed National Activity Index for July which was reported at 0.27.
• US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of September 17th are predicted at 261K and US Continuing Claims for the week of September 10th are predicted at 2,143K. Forex traders can compare this to US Initial Jobless Claims for the week of September 10th which were reported at 260K and US Continuing Claims for the week of September 3rd which were reported at 2,143K.
• US Existing Home Sales: US Existing Home Sales for August are predicted to increase by 1.1% monthly to 5.45M. Forex traders can compare this to US Existing Home Sales for July which decreased by 3.2% monthly to 5.39M.
• US House Price Index: The US House Price Index for July is predicted to increase by 0.3% monthly. Forex traders can compare this to US House Price Index for June which increased by 0.2% monthly.
• US Leading Indicators: US Leading Indicators for August are predicted flat at 0.0% monthly. Forex traders can compare this to US Leading Indicators for July which increased by 0.4% monthly.

Should price action for the GBPUSD remain inside the or breakout above the 1.3050 to 1.3100 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.3075
• Take Profit Zone: 1.3900 – 1.4000
• Stop Loss Level: 1.2750

Should price action for the GBPUSD breakdown below 1.3050 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.3000
• Take Profit Zone: 1.2700 – 1.2750
• Stop Loss Level: 1.3050

 

[PaxForex]

What is Negative Interest Rates Policy

An interest rate, or rate of interest, is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed . The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed. Anegative interest rate policy (NIRP) is an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.

Interest rates are generally assumed to be the price paid to borrow money. For example, an annualized 2% interest rate on a $100 loan means that the borrower must repay the initial loan amount plus an additional $2 after one full year. On the other hand, a -2% interest rate means the bank pays the borrower $2 after a year of using the $100 loan, which is a lot to wrap your head around. While negative interest rates are a great incentive to borrow, it's hard to understand why anyone would be willing to pay to lend considering the lender is the one taking the risk of a loan default.

Negative yields mean that if an investor places a deposit with a bank at maturity the investor receives back an amount less than the original investment. In effect, the depositor pays to place money with the bank. In the case of bonds, negative yields mean that investors accept an economic loss, as the price paid by the investor is greater than the present value of the interest payments and principal repayment for a security. Negative real rates entail return on the amount invested but loss of purchasing power because inflation rates are greater than the return. Negative nominal rates involve a guaranteed loss of capital invested.

Theoretically, targeting interest rates below zero will reduce the costs to borrow for companies and households, driving demand for loans and incentivizing investment and consumer spending. Retail banks may choose to internalize the costs associated with negative interest rates by paying them, which will negatively impact profits, rather than passing the costs to small depositors for fear that otherwise they will move their deposits into cash.

While negative interest rates may seem paradoxical, this apparent intuition hasn't kept a number of European central banks from giving them a try. This is no doubt evidence of the dire situation that policymakers believe is characteristic of the European economy. Though fears that bank customers and banks would move all their money holdings into cash did not materialize, there is some evidence to suggest that negative interest rates in Europe cut down interbank loans.

 

[PaxForex]

Gold Fundamental Analysis – September 26th 2016

Here are the key factors to keep in mind today for Gold trades:

• Japanese Leading Index and Japanese Coincident Index: The Final Japanese Leading Index for July was reported at 100.0. Forex traders can compare this to the first Japanese Leading Index for July which was reported at 100.0. The Final Japanese Coincident Index for July was reported at 112.1. Forex traders can compare this to the first Japanese Coincident Index for July which was reported at 112.8.
• German IFO: The German IFO Business Climate for September is predicted at 106.3. Forex traders can compare this to the German IFO Business Climate for August which was reported at 106.2. The German IFO Current Assessment for September is predicted at 112.9. Forex traders can compare this to the German IFO Current Assessment for August which was reported at 112.8. The German IFO Expectations Index for September is predicted at 100.1. Forex traders can compare this to the German IFO Expectations Index for August which was reported at 100.1.
• UK BBA Loans for House Purchase: UK BBA Loans for House Purchase for August are predicted at 37,100. Forex traders can compare this to UK BBA Loans for House Purchase for September which were reported at 37,662.
• US New Home Sales: US New Home Sales for August are predicted to decrease by 8.3% monthly to 597K new homes. Forex traders can compare this to US New Home Sales for July which increased by 12.4% monthly to 654K new homes.
• US Dallas Fed Manufacturing Index: The US Dallas Fed Manufacturing Index for September is predicted at -3.0. Forex traders can compare this to the US Dallas Fed Manufacturing Index for August which was reported at -6.2.

Should price action for Gold remain inside the or breakdown below the 1,333.00 to 1,337.00 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1,335.00
• Take Profit Zone: 1,200.00 – 1,210.00
• Stop Loss Level: 1,350.00

Should price action for Gold breakout above 1,337.00 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1,340.00
• Take Profit Zone: 1,370.00 – 1,375.00
• Stop Loss Level: 1,333.00

 

[PaxForex]

Analysis on J&J 27.09.2016

The price is below the moving average 20 MA and 200 MA, indicating the downward trend.
Average in the MACD is below the zero level.
The oscillator Force Index is below the zero level.

If the price rebound from resistance level, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 117.20
• Take Profit Level: 115.10 (210 pips)

If the level of resistance is broken, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 120.00
• Take Profit Level: 120.80 (80 pips)

GOLD
Possible short position at the breakdown level 1327

GBPUSD
Possible short position at the breakdown level 1.2915

USDJPY
Possible short position at the breakdown level 100.00

USDCHF
Possible long position at the breakdown level 0.9720

 

[PaxForex]

Analysis on USDJPY 23.08.2016

The price is below the moving average MA 200 and 20 MA, indicating the downward trend.
The MACD is below the zero level.
The oscillator Force Index is above zero level.

If the level of support is broken, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 100.00
• Take Profit Level: 99.00 (100 pips)

If the price rebound from support level, you shall follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 100.90
• Take Profit Level: 101.60 (70 pips)


GOLD
Possible long position at the breakout level 1321.80

GBPUSD
Possible long position at the breakout level 1.2900

EURUSD
Possible long position at the breakout level 1.1240

USDCHF
Possible short position in the breakdown of the level 0.9680

 

[PaxForex]

What is Forex Margin Trading

Although most trading platforms calculate profits and losses, used margin and usable margin, and account totals, it helps to understand how these things are calculated so that you can plan transactions and can determine what your potential profit or loss could be. Most forex brokers allow a very high leverage ratio or, to put it differently have very low margin requirements. This is why profits and losses can be so great in forex trading even though the actual prices of the currencies themselves do not change all that much.

Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is a good faith deposit that a trader puts up for collateral to hold open a position. More often than not margin gets confused as a fee to a trader. It is actually not a transaction cost, but a portion of your account equity set aside and allocated as a margin deposit. When trading with margin it is important to remember that the amount of margin needed to hold open a position will ultimately be determined by trade size. As trade size increases your margin requirement will increase as well.

Margin is the amount of money needed as a “good faith deposit” to open a position with your broker. It is used by your broker to maintain your position. Your broker basically takes your margin deposit and pools them with everyone else’s margin deposits, and uses this one “super margin deposit” to be able to place trades within the inter-bank network. For example, in forex, to control a $100,000 position, your broker will set aside $1,000 from your account. Your leverage, which is expressed in ratios, is now 100:1. You’re now controlling $100,000 with $1,000. The $1,000 deposit is “margin” you had to give in order to use leverage.

Margin is usually expressed as a percentage of the full amount of the position. Based on the margin required by your broker, you can calculate the maximum leverage you can wield with your trading account. Aside from “margin required”, you will probably see other “margin” terms in your trading platform. Used margin: The amount of money that your broker has “locked up” to keep your current positions open. Usable margin: This is the money in your account that is available to open new positions.

Margin call: You get this when the amount of money in your account cannot cover your possible loss. It happens when your equity falls below your used margin. If the market moves against a trader resulting in losses such that the trader lacks a sufficient amount of margin, there is an automatic margin call. The forex dealer closes the trader’s positions and limits the losses for the client because this stops the account from turning into a negative balance.

 

[PaxForex]

Analysis on Intel 29.09.2016

The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.

If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 38.00
• Take Profit Level: 39.00 (100 pips)

If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 36.50
• Take Profit Level: 36.00 (50 pips)



GOLD
Possible short position in the breakdown of the level 1317

USDJPY
Possible long position at the breakout of the level 100.00

USDCHF
Possible short position in the breakdown of the level 0.9680

GBPUSD
Possible short position in the breakdown of the level 1.2970