Comment: Trading in the foreign exchange market is really a challenging business. Knowing where exchange rate may go next appears to be straightforward however escapes virtually all people. The main reason for this is that they often fail to take into consideration all the details that is available. Purely mastering indicators and graphs just gives only half the picture. To obtain an advantage on the market information is king and understanding how to find it is actually essential. We try to give everyone the most vital content that will help you make smarter trading decisions. This informative article, Forex Forecast: Pairs In Focus – Sunday, April 29 will give you the most recent information regarding where professionals feel price will go giving you a chance to be a little more profitable with your trading
The difference between success and failure in Forex trading is very likely to depend upon which currency pairs you choose to trade each week, and not on the exact trading methods you might use to determine trade entries and exits. Each week I am going to analyze fundamentals, sentiment and technical positions in order to determine which currency pairs are most likely to produce the easiest and most profitable trading opportunities over the next week. In some cases it will be trading the trend. In other cases it will be trading support and resistance levels during more ranging markets.
Big Picture April 29
In my previous piece last week, I forecast that the best trade would be long WTI Crude Oil. After initially rising, WTI Crude Oil fell slightly to end the week down by 0.21%.
Last week saw a resurgence in the U.S. Dollar, while almost every other currency fell in their relative values against the greenback. The U.S. Dollar Index made a new 4-month high price, while the U.S. stock market (represented by the S&P 500 Index) is showing a little life but remains trapped between a bearish trend line and the 200-day moving average. Crude Oil has continued to rise to new long-term high prices, making a new 3-year high.
The major economic data releases last week were U.K. GDP which came in significantly weaker than expected at 0.1%, while U.S. Advance GDP data came in a little higher than expected, at 2.3%. The major political drivers are the prospect of peace in the Korean peninsula, and tension over what will happen regarding the Iran deal as U.S. sanctions policy against Iran comes up for renewal on May 12.
Fundamental Analysis & Market Sentiment
Fundamental analysis tends to support the U.S. Dollar; and this seems to be increasingly supported by sentiment. The 10-year yield remains close to 3% but GDP looks strong. Sentiment has turned sour on the British Pound as new data shows its economy is barely growing. Monthly policy events from the European Central Bank and the Bank of Japan last week had little impact.
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Disclosure: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.
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