Commodities versus cross pairs with iForex

[Kelune]

If you see technicals on the Euro index, it’s outlook remains uncertain. Maybe it is a bit early to jump on a long trade, I think one more retracment would happen before the bulls would take over. While the fundamentals are promising better days for the euro, historically august has not been a month where it’s performance shines. In europe especially august is considered as a slow month, so I would wait for the newswet economic releases and if they show even better imporvments of the erusozone economic, then I will be more confident to go long in september.

[Nuathris]

Guys, September has come, have you checked the EUR/USD chart now? I think I was right when I signalled that the EURO will give us some nice trading opportunity in August. I wish I entered a short position on EUR/USD last time we discussed the euro sentiment…. It would bring me some sweet profits. However, that’s water under the bridge, let’s talk about the present time. What do you think, will this downtrend on EUR/USD continue, or it is too late to enter a trade now?

[Kelune]

As I wrote last time, It was the right decision to wait for more signals or news. Now we have a more clear picture of the Euro sentiment. As you can see on the EUR/USD pair, even though there was good economic news about the Euro, the bulls couldn’t take control of this pair. Actually, I can’t see any trend if we are looking at a 1D chart. The market is still ranging. I guess you are seeing the 4H chart, am I right? On the 4H chart, there is a nice downtrend, but if you ask me it’s kind of too late to enter now. Unfortunately, you missed this opportunity. However, it’s crucial to see the chart in different timeframes to see the whole picture, some timeframes might give you wrong signals for a trend, as it is the case now. Let me give you some advice, If you hold your trades for a couple of days, then look at the 1D chart, If you are a day trader, then you should look at 4H or smaller timeframes.

[Deliniel]

As I wrote last time, It was the right decision to wait for more signals or news. Now we have a more clear picture of the Euro sentiment. As you can see on the EUR/USD pair, even though there was good economic news about the Euro, the bulls couldn’t take control of this pair. Actually, I can’t see any trend if we are looking at a 1D chart. The market is still ranging. I guess you are seeing the 4H chart, am I right? On the 4H chart, there is a nice downtrend, but if you ask me it’s kind of too late to enter now. Unfortunately, you missed this opportunity. However, it’s crucial to see the chart in different timeframes to see the whole picture, some timeframes might give you wrong signals for a trend, as it is the case now. Let me give you some advice, If you hold your trades for a couple of days, then look at the 1D chart, If you are a day trader, then you should look at 4H or smaller timeframes.

Yep, I would agree with your point of view. We can not talk about the downtrend at this moment. There is a bullish sentiment, but the price can change direction really quickly. At this moment I would trade only a day-long trade on EUR/USD. There are no clear signals that the price would be trending which would allow us to keep the trade open for a longer period and award our patience with some nice profits. Still, in the 4H timeframe, there were pretty good opportunities. And let’s give credit to Nuathris, he was right about the volatile period the Euro has been through in August.

[Arcanebringer]

Guys, I may stray a bit from the usual topics we discuss here, but I really appreciate the opinion of real traders and I know that in this little forum of ours, I will get useful and real information.
I usually use bank cards for transfers, but I see that crypto transfers are becoming popular and my broker iForex offers this option. Withdrawal of $1000 using a bank card, usually costs me around $30-$35 in fees, which is not a considerable amount of money, but if you do it frequently it adds up. Do crypto transfers really save money or is it not worth the hassle?

[Agajurus]

I had the same dilemma a couple of months ago. I read many comments that using crypto saves you a lot in transfer fees, but when I did the maths it was more or less the same. To be more precise, it is a cheaper option than using a bank card payment method, but for me, it wasn't worth it. I needed to go to a crypto exchange shop to exchange that money into fiat currency and it was too much work.

[Gholbizel]

To sum extent Agajurus is right, but he was not clear enough 😀 I understand his point of view, but let me elaborate a bit more on that.
If you use a bank card as a payment method for the amount you mentioned the $30 transfer fee will be the total amount you will pay to get your money in your account.
If you use crypto as a payment method there is almost a zero fee for transfers. There is a small fee that you need to pay as a gas fee, which goes up to approximately $1.5 for a $1,000 equivalent amount in crypto, but you still don't have the money in fiat currency. Then you need to find an exchange office to sell your cryptocurrency for dollars. They will charge you a conversion fee + you will pay a gas fee for the transfer. Again for $1000 the standard conversion fee is around $15. So, the total difference is about $15. You decide what it is worth.

[Nuathris]

This was a great practical example that Gholbizel gave. However, if the amount is much higher than $1000 then the difference in the cost-effectiveness of the crypto transfers goes higher too. Meaning, that for more significant amounts of money, the conversion fee goes lower, while for the bank cards, it stays the same.

[Kelune]

Hey, has anyone been tracking the US30 lately? It seems like it's been on a rollercoaster ride due to the recent economic reports and events. It’s been a long time since the last time I traded the Dow Jones, so I am kinda rusty. Anyone found some pattern or strategy that works well with it?

[Deliniel]

Absolutely, Kelune. The Dow Jones is indeed quite volatile, as always. Well, good luck with the patterns If you delve deep and find something interesting, please share it with us. I am not going that deep with the US30, but from time to time I check if there is a nice trading opportunity, especially during some important news releases. The last trade I took was like a week ago I guess, during the last FED meeting when they announced that they won't increase the interest rate. Usually, the US30 reacts to the FEDs meeting especially when something interesting is coming out as a piece of news, like it was the case with the last meeting and the price immediately went into a bullish trend.
Bottom line, I only trade the US30 in combination with some important news releases and don’t have any pattern strategy.

[Nuathris]

I concur, Deliniel. Additionally, I've observed that during periods of heightened global uncertainty, which were plenty in the last couple of years and the world doesn’t failed to create new ones 🙂 US30 often experiences sharp movements, either upward as a safe haven asset or downward due to market jitters. But probably we are taking about the same trading strategy, connected with important news. If we observe the price movement with technical analysis, I would advise looking for key support and resistance levels. Dow Jones is known as an instrument that respects the major support and resistance levels. WHenever the price approaches historical resistance levels, there's often a significant pullback. Combining this with trendline analysis can provide a robust strategy.

[Kelune]

Hey, guys! The Gold hit an all-time high and we didn’t comment on this significant event. From this perspective, What do you think caused this price surge?

[Deliniel]

Indeed, Kelune. Generally speaking, It seems the spike is largely attributed to growing concerns about the current geopolitical landscape, particularly the Middle Eastern crisis and the ongoing war in Israel. The inflation concerns are fading away, and there were no major economic events.
Must be honest, I didn’t expect this crisis to trigger the price to that level and frankly speaking, I entered a short trade 🙁 thank god I put a stop-loss at the previous all-time high, otherwise my losses would be even larger.

[Nuathris]

Sorry to hear about your loss, but I'm in line with your observations. In addition to that, it looks like central banks globally are continuing to buy gold as a reserve asset. Just recently I read a news article about the amount of gold the banks from Turkey and China bought in December and the numbers were staggering. Anyway, I am not sure if this is a consequence or if this fuels the price rally… this is important to know because if this fuels the rally, then the price might get even higher.. right!?

[Agajurus]

Absolutely, Nuathris. Your dilemma is similar to the age-old question of which came first, the egg or the chicken? Even if the reaction of the Central banks is a response, with their actions they fuel the price rally. So yeah, to make proper trading decisions in the coming days I would watch closely what central banks are doing.