US Dollar Losing Control Below 93.00

In terms of the US dollar index (DXY), the dollar continues to fall and is now breaking below the key support at 93.00.

US dollar offered despite data

Dollar optimism following the announcement of the White House's tax reform proposal faded quickly, prompting sellers to move in and out of the USD.

In addition, S.Mnuchin's comments that the government is committed to obtaining fiscal legislation at the end of the year also appear to have been insufficient to shore up the upward bias in DXY.

In addition, in today's keynote address, KC Fed E.George (aggressive 2019 voter) also found it appropriate to have further gradual rate hikes, adding that the US economy will continue to grow in the coming years. As for the prospects for an additional adjustment, the CME Group's FedWatch tool now sees the probability of a December rate hike above 76%.

In the US data space, the August trade deficit narrowed more than expected, while the third quarter GDP review now sees the economy expand by 3.1%, improving consensus.

Relevant levels of the US dollar

At this time, the index is losing 0.31% to 92.98 compared to immediate support at 92.48 (SMA of 10) followed by 92.33 (SMA of 21 days) and finally 91.53 (minimum of September 20). On the upside, a break above 93.66 (28 September high) would open the door to 94.03 (23.6% Fibo of the fall of 2017) and finally 94.14 (16 August high).

Forex Market Regulation: Why and How?

The forex market (FX) is the largest and most liquid market in the world, with about $ 5300 million traded daily. Day trading is quite common among forex traders, but most investors depend on the creation of trading accounts and the execution of their trades through the Forex brokers.

There are hundreds of Forex brokers and new brokers constantly open their doors to the public. This makes it difficult to choose the best broker and leaves traders at the mercy of the broker when it comes to honesty and transparency. Despite its enormous size, regulation in the Forex market is scarce and there is not a single global body to monitor it 24/7.

There are no accurate statistics, but the number of forex brokers and binary options that work under a regulatory authority is minimal (an estimated 5 percent) and that gives many companies the ability to take advantage of their clients and engage in abusive practices without consequences.

The Risk of Non-Regulation

For forex retail traders, the biggest disadvantage of the lack of regulation of the forex market of most brokers is the illegal activity or absolute fraud, as well as losses in a market increasingly dominated by speculative activity and the great institutions.

After a series of scams related to the forex market during the period between 2001 and 2008, the CFTC created a special working group to deal with the problem and introduced tight forex regulations several years later to protect retail traders currency.

Under the Commodity Trade Act (CEA), the CFTC assumed jurisdiction over leveraged Forex transactions offered to retail customers in the United States. This Act only allows regulated entities to act as counterparties to forex transactions with US retail clients and requires all forex brokers in the United States online to be registered and comply with the strict financial rules applied by the National Futures Association (NFA).

At the institutional level, banks, which are responsible for 95 percent of the daily currency trade, are heavily regulated. The US Federal Reserve and the US Treasury Department are very attentive to the regulation of the Forex industry and carefully monitor brokers for evidence of manipulation.

Forex Regulation: Why?

Why is Forex regulation so important? The aim of regulation is to ensure fair and ethical business behavior. Under current regulatory contracts, all forex brokers, investment banks and signal traders are required to operate in strict compliance with the rules and regulations set by forex regulators or their activities may be considered illegal. These agencies must be registered and authorized in the country where they base their operations, which ensures that the quality control standards are met. Brokerage houses are subject to audits, reviews and periodic assessments that force them to maintain industry standards. In addition, regulated Forex brokers must maintain a sufficient amount of funds to be able to execute and complete the currency contracts made by their clients and also to return the funds of the clients in case of bankruptcy.

If a regulator finds a broker in violation of its guidelines, it can use a wide range of powers - criminal, civil and regulatory - to protect consumers and take action against companies or individuals that do not meet acceptable standards.

It can publish notices that are important to ensure the transparency of the decision taken by the authority and inform the public, thus maximizing the deterrent effect of enforcement action.

Some regulators issue alerts on financial services companies and individuals both abroad and in their local areas.

Of course, there can be no assurance that any action taken by a regulatory agency, such as the FCA in the United Kingdom, will result in payment or refund of funds or securities, even when formal disciplinary action is taken and sanctions are imposed.

Many of the measures taken by regulatory agencies against brokers covered by their authorities may also apply to unregulated brokers who find themselves in similar situations by the police and other coercive agencies, but their mandate is limited and less likely that is imposed, thus leaving investors with few resources in case of fraudulent practices.

Forex regulators operate within their own jurisdictions, but often work together to look for suspicious activity. In fact, in the European Union, a single Member State license covers the entire continent.

Over the years, regulators around the world have tried to organize some sort of universal regulatory body. The MiFID (Financial Instruments Markets) Directive was introduced in the United Kingdom in 2007 and has been the cornerstone of Europe's financial regulation regime ever since.

The MiFID Regulation is being revised to improve the functioning of financial markets in the wake of the financial crisis and to strengthen investor protection. The changes came into force on 3 January 2017, although discussions are being held between the European Commission, the European Parliament and the Council of the European Union on the possibility of delaying implementation. The new legislation is known as MiFID II and includes a revised MiFID and a new Financial Instruments Market Regulation (MiFIR).

There are, however, powerful voices working to exert pressure for the wholesale forex market to have a broad regulatory base. The European Financial Markets Association (AFME), a body in the sector, has opposed the strict rules of MIFID II and has recently published a document stressing that "unforeseen consequences" could lead to excessive regulation of the Forex sector that would prevent brokers from serving their traders comfortably.

The five steps required to navigate the forex market with consistent earnings

The goal of achieving consistent forex earnings is a long and often confusing process. With a new flow of information that has no end, sometimes what you need is to return to the fundamental principles.

This is why we have decided to place five steps that will help you establish a strong foundation for success.

1. Choose your currency pairs
2. Prepare your graphics
3. Explore in search of favorable setups
4. Place the operation
5. Track your results

US Dollar Boosts Momentum

The rise of the US dollar lost momentum about 91.80

The US Dollar (DXY), which measures the dollar against a basket of its main competitors, has managed to cut some losses and is now flying above the 91.70 / 80 zone.

Lowest US Dollar on Data Performance

The index is on track to close the week in negative territory, reversing the previous advance while at the same time encountering strong resistance around the SMA of 200, today at 92.76.

Collaborating with the fall, the US 10-year benchmark yields keep trading close to daily lows, reversing a 10-day positive streak but closing on the positive side for the second consecutive week.

As for US data, Markit's preliminary manufacturing PMI came in at 53.0 for the current month, while services lost at estimates of 55.1. More news saw Kentucky Fed chairman E. George arguing that the economy could be working full employment, adding that weak inflation readings do not seem to be related to the weak economy.

Relevant levels of the US dollar

When writing, the index goes back 0.46% to 91.72 and a break below 91.53 (September 20 low) would open the door to 91.01 (low September 8) and finally 87.63 (low 16/12 2014).

At the top, the initial obstacle is aligned at 92.22 (SMA of 21) followed by 92.69 (maximum September 20) and then 93.26 (SMA of 55).

**FOREX NEWS REALTY

Forex Weekly Seasonality Strategy

The seasonality of the Forex Market is a neglected aspect of the operation with legitimized uses on the part of the operators of speculation, and this article tries to highlight some dynamics and to create a strategy apart from the key trends of the Market. Let's discuss a new generation of trading techniques and understanding about a key facet of the Forex Market.

What is seasonality in the Forex Market?

The seasonality of the Forex Market is the tendency of currencies to move around in repeatable and relatively predictable patterns over time. When discussing seasonality, most guides will refer to certain monthly trends that occur during the calendar year. A relevant example is the Japanese Yen's tendency to revalue at the end of that nation's fiscal year. Even so, these patterns are quite difficult to operate since they are somewhat unpredictable and have a reduced legitimized use by the operator in the short term.

Instead we will examine a trend that is much more useful in the short term: The behavior of currencies to set maximum and minimum levels in a weekly context. The relative predictive ease is obviously what interests us as Forex traders; if something repeats itself, in theory it is easy to speculate from such repetition.

Forex Trends and Weekly Trends

Years of reporting on the Forex Market show that currencies will quite likely set their maximum and minimum levels at the beginning and end of the trading week. Intuitively, this makes sense: If a currency is in a fairly consistent uptrend, chances are that its Monday low will hold until Friday and the opposite should also be correct. In addition, the representative currencies of Europe and North America also have the tendency to show great movements in the price towards the end of the week.

Of course this is quite interesting in all its dimension, but the first question we ask ourselves is: How do we use this in our operation?

Parameters of the seasonal strategy in the Forex Market

If we wanted to speculate that Monday's highs or lows could be maintained, we would probably be estimating that the currency will continue in one direction during the subsequent week of operation. There are some ways to do this, but sometimes the simplest solution is best for operating strategies.

Entry Parameter: On Tuesday, establish a purchase order entry order on the Monday maximum level, a sales stop entry order on the Monday minimum level. We will keep these income orders with buying and selling stops throughout the week except that we have already taken long or short positions with the exchange rate respectively.

Stop loss: The order of entry with the opposite stop will take us out of a certain position and establish an operation in the opposite direction. This will be what happens unless an order to the other direction was already activated during the previous week of operation.

Profit Sharing: None

Output Parameter: Close if possible before Friday at any rate.

Results of the seasonal strategy in the Forex Market

If we use this weekly strategy in the frequently volatile and noticeably fast exchange rate to generate trends like the British Pound against the Japanese Yen, the results are somewhat impressive.

Despite notable periods of poor performance, in a hypothetical context the strategy performed fairly well with the GBP / JPY going back to the beginning of 2001. Although past performance is never a guarantee of future results, such parameters Simple and intuitive operations are equally promising in other exchange rates.

Uses for each day of operation

Now that we know of the tendency for currencies to develop their maximum and minimum levels at the beginning and end of the week, we can use this as a class filter for our own trading strategies. If a trend-based trading system is used, an trader may wish to evidence whether a currency has broken its maximum or minimum level at the beginning of the week and adopt an operation in that direction. If an operator uses a more range-based trading system, he can also look for the ability of the currency to set a particular address after a break at the maximum or minimum level at the beginning of the week.

Although nothing is perfect, research shows that an operator is likely to have a better chance of success if it operates with general seasonal trends.

Small and simple rules to follow in Forex

There are some simple and practical rules to keep in mind when investing in Forex. The largest and most liquid market in the world has its own rules that we must understand in order to operate successfully.

A small investor must take into account some of these simple aspects to be able to increase the success of your investment in a few weeks, yes, you must have good information and be constant in the study and analysis of the market.

Small rules to follow in Forex

Currencies are what mark the success or failure of our investment in the Forex market. Currency pairs will only move us to good results when we can trade a pair of currencies in which equilibrium reigns, that is, a strong currency versus a weak currency. In order to choose them, it will be necessary to consult the market trends so as to proceed with more success in our choice.

Although Forex works with currency pairs, each currency is traded separately. Coin pairs consist of a base and a secondary coin. When making technical analyzes of the currency pair you have chosen, it is important to do them individually to detect the possible risk points of each currency, and where their strengths and weaknesses are found, in order to be able to act quickly and consistent in our operations.

Learn and study Forex indicators. Many investors have failed to reach their targets because they did not know the basic construction of a pair of currencies. It is not difficult to access Forex trading, the tricky thing is to stay in a profit and loss equilibrium, where the balance inclines more to the first than to the second.

Winslow Forex Strategies and How They Work

The Winslow strategy was carried out in 1949, and is often very common and famous in Forex, so much so that its creator "Alfred Winslow", a sociologist who worked for Fortune magazine, became a billionaire only by giving courses and seminars throughout the world.

History of the Winslow strategy

The investment community welcomed a new and unique way of investing known as long / short. Although the Winslow strategy was created to invest in hedge funds, we can also use it to operate on all currency pairs in major time frames, both medium and long term, with daily or weekly charts.

The Winslow strategy is relatively simple and can be configured on any platform. The Winslow strategy also allows us to take long steps to keep ourselves immune to bearish trends, we do not have to depend on the secular cycle of the stock market, but we will be able to obtain profitability in any environment that offers us the market.

The key that Winslow initiated in 1952, after launching a hegde fund with initial capital of $ 100,000, is to diversify investment by protecting capital, in this way we protect ourselves against the most undervalued currencies, putting us at length, and favoring us before the overvalued ones , putting us in this case to shorts.

The Winslow strategy consists of three distinct phases and determined by a moving average of 800 periods, this average will be the reference to enter into one of the following phases: YUMA phase, TUCSON phase and FLAGSTAFF phase, which will operate with the objective of reaching the moving average of 200 periods.

Basic Forex Beginner Tips

Anyone can make money on Forex? The Forex market is open to any investor as long as you have proper training.

Training in the Forex market is one of the most important aspects so that we can achieve our investment objectives and stay away from possible mistakes and away from making big losses.

Training is not only basic for beginners in Forex, you need to upgrade through training, from novice investors to more experienced investors, is a way to take advantage and to anticipate the very unpredictable events of the forex market.

The best way to start rolling and training in the Forex system, is through the demos that can be found on many Forex platforms. Beginning investors have a thrill at the beginning that can lead to a misstep in their early hours in the Forex market.

To keep our real operations away from the initial impulses, we can practice with demo accounts, where we can plan our strategies and movements, applying the information and knowledge that we acquire in the complementary training with courses, seminars and other types of training offered by specialized companies.

Make sure you know how the market moves, and that the training you receive is the right one to benefit you by entering this market, which is the largest in the world and the one that moves the most money.

Pros and Cons of Investing in Forex

There are pros and cons in the Forex. Despite being the biggest market in the world and moving so much money in it on a daily basis, there are aspects that you must take into account when starting.

• The Forex market is the largest and the most liquid in the world, but it is also a very volatile market, so if you are sufficiently prepared, you are likely to receive significant losses in few trades.
• To participate in the Forex market you need to access through a broker, who is the intermediary between your money and the market. Be sure to choose a good broker that is regulated and with which you understand well, that is, have a good customer service and an easy to use platform.
• In the Forex you can earn a lot of money in a short time, but also lose it at the same speed. They are the consequences of the great volatility of the market.
• Do not invest in Forex if you have some risk aversion, surely it will not be your type of investment.
• Unlike stock investing where you can choose hundreds of stocks to invest in, you will only trade with a few currency pairs.
• You can sell and buy 24 hours a day through the electronic platforms, which gives you a lot of flexibility when it comes to trading, but you can also get obsessed if you're not prepared enough.

Market maker and ECN: types of brokers in Forex.

A very important aspect in investing in Forex is the choice of a good broker, because depending on whether we choose a broker or another, we can turn our daily trading into a quiet operation or a real hell.

Differences between Market Maker and ECN

There are 2 types of brokers:" the market maker and the ECN".

On the one hand, brokers Market Maker, or brokers with trading desk, are brokers in which transactions with the purchase and sale of currencies are not made directly on the exchange market, but remain on the work table of the broker.

These brokers make an internal market for their clients, in which all the transactions they make, are married to each other, in fact, the same broker can make counterpart in the operations of its clients. This type of broker, by its way of operating, can create conflicts of interest between the broker and its customers.

The advantages of these types of brokers is that they allow you to open an account with fewer resources, its platforms are easier to use and allow you to do more leverage.

ECN brokers are "no dealing desk" brokers, that is, they allow their clients' orders to interact with one another. They provide a kind of market where they allow all participants: banks, brokers market makers or individual operators to operate against each other by sending very competitive purchase and sale prices within the system.

Participants within this market system get the best quotes available at any given time.

Your profits are always commissions. There is no conflict of interest and participants can operate freely.

Features that differentiate the Forex market

The term Forex means "exchange of currency". In the past, it was a very tight market with a very small number of operators, it is now a completely open market in which they operate from banks to small customers who can trade only with a computer with an Internet connection.

Forex Market Keys

The most significant feature of the Forex and which gives off most of its advantages is that it is an over-the-counter (OTC) market, that is, it is a global market that does not have a physical location and some defined trading hours.

The Forex market is located anywhere in the world with a simple mobile device. Where two people exchange currency through electronic means, is the Forex market.

The foreign exchange market is a business with derivatives, where the strength of its operations are speculative, with the sole purpose of making profits.

Today the Forex market is an investment market, the largest and most liquid in the world, even above any stock market where more than 3 trillion dollars are traded daily.

In the Forex market there is a daily trading volume so great that it is impossible for a single trader to influence price formation. That is to say, that a great broker can not move the price of the currencies as it happens with the stock markets.

In addition, you can trade the 24 hours, what an investor in Forex, you can adapt your trading sessions to your personal and professional life.

Forex Fundamental Analysis

This is a type of analysis widely used by traders, who consider trading for a long time. The forecasts basically consist of the analysis of current political and economic situations. Traders analyze economic news and target events that can influence financial markets. These can be changes in a country's policy styles, economic situations or publications of different indicators, among others. The fundamental analysis considers all kinds of information, from rumors to anticipations.

That is, this type of analysis depends entirely on external and internal factors that affect the world economy. To obtain an effective analysis it is necessary to be able to see both direct and indirect relationships. For example, strengthening or weakening the economy of a major country may affect not only the price of its national currency, but also the exchange rate of allied countries.

The fundamental analysis is carried out using an economic calendar, lens of financial news, reports of various governmental and non-governmental organizations and analysis of different indicators of the state of the economy among others. There are companies that specialize in this type of analysis. For example, in the FxWirePro news lens, you can always find the most up-to-date data on financial markets.