Commodities versus cross pairs with iForex

[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.

[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.

[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]

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.

[Deliniel]

I could share your view, Nuathris! The euro has been in the spotlight lately. Earlier with the decision of the ECB to coninue the interest rate hike and the statment the the inflation is not over yet, made me concern about the overal performance of the Euro. But recenlty, when other important economic data have been released, such as CPI of 0.6%; GDP Growth rate YoY (Q2) of 0.6%; and finally the lateset Inflation rate of 5.3 which was lower than the previous of 5.5% shows that the economy of the Eurozone countries have been recovering. I think the next month these numbers will show even better outcomes, and I am pretty sure that the bulls will take over the Euro. In fact, everyone is expecting from the Euro to get back to his old track and that would be another factor that better days are coming.

Totally agree about the strange ECB decision from the last month. I am curious to see what would be the next one, but I think they will not make another desicion of continuing the interest rate hiking, and it’s too early to expect from them that they will decrease the rate. I am not certain that there are enaugh factors to triger a bulish performance of the Euro, probably everybody is waiting for the newest ECB signals, but for sure we can expect more volatility in euro pairs. I would rely more on technical analysis thish month when the euro is in question, rather than fundamental.

[Agajurus]

Guys, we skipped commenting on the latest ECB rate decisions. What are your thoughts on the latest developments with the euro? There have been some significant economic reports and policy decisions that might make Eure goes bullish. Would you agree with my point of view?

I could share your view, Nuathris! The euro has been in the spotlight lately. Earlier with the decision of the ECB to coninue the interest rate hike and the statment the the inflation is not over yet, made me concern about the overal performance of the Euro. But recenlty, when other important economic data have been released, such as CPI of 0.6%; GDP Growth rate YoY (Q2) of 0.6%; and finally the lateset Inflation rate of 5.3 which was lower than the previous of 5.5% shows that the economy of the Eurozone countries have been recovering. I think the next month these numbers will show even better outcomes, and I am pretty sure that the bulls will take over the Euro. In fact, everyone is expecting from the Euro to get back to his old track and that would be another factor that better days are coming.

[Nuathris]

Guys, we skipped commenting on the latest ECB rate decisions. What are your thoughts on the latest developments with the euro? There have been some significant economic reports and policy decisions that might make Eure goes bullish. Would you agree with my point of view?

[Gholbizel]

While commodities do offer stability, I believe cross-pairs can also present profitable opportunities during a recession. The currency market tends to react swiftly to economic news, and cross-pairs allow traders to capitalize on the volatility. By carefully analyzing the economic indicators and central bank actions, one can identify potential trends.

[Kelune]

Indeed, the mixed signals from bank officials create a challenging environment. In such uncertain times, commodities could serve as a reliable investment. Their tangible value and potential for hedging against inflation make them an attractive choice.

[Deliniel]

I've been closely following the statements from the bank officials last week, and it seems they are not confident that the recession has ended. Their cautious approach reflects the uncertain economic conditions. I believe it's crucial for traders to keep a close eye on these indicators and adjust their strategies accordingly.

[Agajurus]

There is some sense, but risks are very high. We don't know how CNY will react if something big will happen. Currency is affected by politics and it is not the best time for politics now.

[Nuathris]

Still it promises a big profit. Maybe there is sense to purchase some. I am not talking about big stakes, but gradual buying can help to accumulate a nice amount with tasty price.

[Agajurus]

The only thing I am pretty sure is CNY will be a great asset to accumulate, but the investing horizon stays unclear.

Agree. The currency itself is a fine one, but with the latest news from China and all this confrontation with the United States makes it a risky asset in my opinion.

[Gholbizel]

By the way, many traders are pretty sure that CNY is a better choice to stack. Any ideas?

The only thing I am pretty sure is CNY will be a great asset to accumulate, but the investing horizon stays unclear.

[Deliniel]

By the way, many traders are pretty sure that CNY is a better choice to stack. Any ideas?