Copy Trading has seen a surge in popularity over the recent years as investors became more savvy and started to look for alternative ways to diversify their portfolio and look for additional streams of income.
Click here to open a live account with FXPIG, and start trade copying!
cTrader Copy: Introduction
cTrader Copy is a built-in copy trading solution in cTrader, providing users with a one-stop platform for all of our copy trading needs. cTrader Copy started off as cMirror but as the years went on, countless improvements have been implemented to make the platform more robust.
Based on my personal experience, cTrader Copy is one of the easiest-to-use Copy Trading solutions in the market and I will tell you why in the following sections.
The Advantages of cTrader Copy
Be In Full Control
As an investor, you can start, pause and stop following any strategy at any time. Funds can be transferred freely between your cTrader accounts. Deposits and withdrawals are also unrestricted* so your capital will not be tied up to any single investment.
Wide Variety of Public Strategies
Investors get to choose from a huge library of existing strategies provided by skilled and experienced traders from around the world. Different strategies with unique performance, fee structure, and trading styles cater to the needs of various investors.
Automated Profit Split
cTrader calculates performance fees and other fees automatically in a timely manner. A high water mark model is also employed to protect investors’ interests, preventing double charging of fees.
Total Transparency
Every strategy listed on cTrader copy has their own dedicated performance page. In these pages you will find detailed metrics and account strategy statistics, allowing you to understand the strategy better before you start copying.
Portfolio Management
New sub-account is created for each strategy that an investor decides to copy. This ensures that the performance of each strategy is well reflected in separate accounts and allows investors to manage and diversify their risks cleverly.
Equity-to-equity Copying Model
An equity-to-equity model is developed for accuracy, precision and exceptional risk management. Regardless of the investment amount, volume and trade size will be allocated based on the ratio between the strategy provider’s and investor’s equity.
Gallery
How Do I Get Started?
- Create a cTrader account with FXPIG
- Confirm your cTID details in the email from Spotware -cTrader
- Fund your Trading Account (Multiple methods available)
- Log in to your cTrader account at ct.fxpig.com
- Go to Copy Section on the left
- Select a strategy (s) and start copying
Click here to sign up for a Live Account with FXPIG and jump on our live chat to start trade copying!
Click here to download the FXPIG cTrader platform
Risk Warning:
Copy Trading and trading CFDs carry a high risk and may not be suitable for all investors. Consult your independent financial advisor if you need more advice regarding your own financial situation and investment objectives. Past performance does not guarantee future profits.
*Deposits and withdrawals are subject to Anti Money Laundering laws and rules set by the Regulatory Bodies.
Are you a skillful trader who pulls profits from the markets consistently? Would you like to grow your trading business and generate an additional source of revenue?
If you answered yes to both of the questions above, then look no more as we have the perfect solution for you at FXPIG.
We will be introducing cTrader Copy in this article, showing you its features and benefits and providing you with the exact steps to get you started.
Access cTrader now and earn performance fees when you trade!Click here to learn why FXPIG is the best partner for IBs
cTrader Copy: What is it?
cTrader copy is a built-in copytrading solutions in cTrader. It allows anyone to be a Strategy Provider and also anyone to be an Investor to copy different strategies. There are mutual benefits for both parties, strategy providers can earn performance fees while investors get to diversify their risks and generate passive income.
This article is specially written for those who wish to be a Strategy Provider.
If you want to learn how to copy strategies on cTrader Copy, click here.
Why choose cTrader Copy with FXPIG?
Easy To Start
✓ No special agreements needed
✓ Set up in a few minutes
✓ Can start with 0 existing client
The barrier to entry is almost non-existent. Just sign up for a live cTrader account at FXPIG and you can start trading and be a Strategy Provider.
Beneficial Features
✓ Flexible fees structure
✓Tools for Promoting your Strategy
You can charge management, volume and performance fees to your followers, generating additional revenue while you trade profitably. A dedicated link if provided which you can embed in your website to reach a wider audience. Your strategy will also rank higher on the Strategy List if it performs well.
Investors’ Confidence
✓ Investors have full control over their funds
✓ Advanced Analytics
Your followers have greater trust in you as your strategy page is publicly visible and they have complete control over their funds.
Hey! Opportunities don’t wait for nobody so Sign Up Now! See steps below.
Step By Step
- Log in to your cTrader account at ct.fxpig.com
- Go to the “Copy” Section on the left (circled in yellow) and click on the trading account you wish to provide your strategy with (in blue box)
- Click on “Become a Strategy Provider” on the top right corner (circled in yellow)
- Fill in the form and click on “Become a Strategy Provider”
Good-to-know
- Give your strategy a name, preferably one that represents your style of trading and stands out among the crowd.
- The Fees that you charge your followers will be credited to a separate account. This allows you to track your performance better and not interfere with your trading.
- Kindly hover your cursor over the 🛈 icon to see more detailed information.
- Your strategy is now published and you will see the “Provider” Label next to your trading account
- Continue to build your trading track record and compete to rank higher on the cTrader Copy strategy list
Strategy Visibility
A. Public
Once the setup is done, it’s now time to increase exposure for your strategy and start attracting potential investors.
Setting your strategy ‘public’ will make your strategy visible on the Strategy List on the main page of cTrader Copy.
Sharing Your Strategy
Click on the share icon (circled in yellow) and get the shareable link (See screenshot below)
You can send the link to your potential investors and it will redirect them to your strategy pages which displays all the useful information about your strategy.
B. Private
You also have the option to set your strategy as private if you want to keep it exclusive. If a strategy is set as private, only those with a one-time invitation link have access to viewing and copying your strategy.
To generate one-time invitation links, click on the same share icon as above and you can choose the number of links to be generated. The link will expire once someone starts copying your strategy with it.
Why Make a Strategy Private?
By setting a strategy private, you are only allowing certain individuals to gain access to view and copy your strategy. This can be very useful if:
- You do not want your strategy to be publicly visible
- You have your own group of clients
- You are a strategy provider + Introducing Broker. This ensures that you receive your IB commissions on top of your performance fees etc.
What’s Next
A lot of traders are currently looking for alternatives after MetaTrader’s Ban. cTrader is the top choice for most traders because it has been around for more than 10 years with an indisputable reputation.
As more traders adopt and move to cTrader, it provides tremendous benefits for you as a Strategy Provider. There will be more potential investors which means more potential funds copying your strategy!
Don’t miss out on this great opportunity. Take the initiative and elevate your trading career.
Click here to start your Journey as a Strategy Provider now with FXPIG!
Seasoned Introducing Brokers (IBs) in the retail trading industry have worked chiefly with MetaTrader in the past decade or so. However, it has had a significant impact on both IBs and retail traders ever since the MetaTrader Apps got removed from the App Store.
What happens next? Read on if you are finding alternatives for your trading business.
Click here to open a Live Account with FXPIG, and hop on our live chat to become an FXPIG IB!
Current Developments
The primary goal of IBs is to provide value to clients and have them trade continuously to generate commission based returns. Obstacles arose when clients couldn’t update their MetaTrader 4 and 5 on their Apple App Store. More importantly, IBs will not be able to onboard new clients that are using iOS devices.
Our team keeps track of the markets all the time and one trend we noticed is this – Everyone has started to shift their attention to cTrader, a platform previously overshadowed by MetaTrader, but the tide has turned due to Apple’s ban.
3 Big Reasons why cTrader is better than MetaTrader for Introducing Brokers
IBs Can Still Earn As Much
One of the biggest concerns of IBs when it comes to switching trading platforms for their clients is they might get a ‘pay cut’. Well, that is not the case, at least for IBs working with FXPIG.
By using FXPIG’s cTrader, you can earn the same commissions as you used to, or even receive a better deal from us!
FXPIG IB Payouts
- Rebates up to 75% of spread markup
- Dollar rebates per lot
- Flexible Plan
>GET IN TOUCH to discuss your customised payout structure.
Better Trading For Your Clients
The design and development of cTrader revolves around traders. Released years after MT4, cTrader was built upon the success of MT4 while adding more functionalities that users really wanted but are not getting from the former.
With a sleek design and plenty of built-in features, you can attract more clients to trade with you. Execution on cTrader is blazing fast and it feels comfortable while trading.
Client’s Adopting cTrader
With sophisticated functions and easy-to-use interface, traders will love it once they get their hands on cTrader. Be some of the first IBs to introduce cTrader to their clients and lead the pack.
>Find out what cTrader can do, read me.
>Click here to access cTrader and its award winning features! Gain access to FXPIG’s cTrader here!
More Ways to Earn
cTrader is not your ordinary trading platform. Yes, we can do advanced technical analysis on cTrader. The ability to place orders and manage trades are the basic tasks that it covers. But there is more to cTrader.
cTrader Copy
cTrader Copy is a built-in Copy Trading solution on cTrader that just works without the hassle of third party plugins.
With a cTrader account, everyone has the opportunity to be a Strategy Provider on cTrader Copy. By sharing your strategy and allowing others to copy your trades, you will receive performance fees by just trading as usual, on top of other revenues such as Management fees and IB rebates.
Learn more about cTrader copy for Strategy Providers
Individuals can also choose from a wide range of profitable strategies to copy. This helps with portfolio diversification and allows for better risk management.
Learn more about cTrader copy for Investors
Why is cTrader Copy important for IBs?
cTrader Copy is a major selling point to attract clients, regardless if they are traders or investors.
- If your client is an experienced trader, get him/her to be a Strategy Provider on cTrader Copy. The trader will receive lucrative performance fees and you will be counting your IB rebates. The more volume your Strategy Providers generate, the greater is your commissions.
- As for your clients who wish to copy others’ trades, get them on cTrader as well and they can browse through thousands of great strategies and select the ones that best suit their investment needs. Similar to the above, the more volume that your clients are copying trades, the more rebates you will receive.
Take Action Now.
Sign up now and start your IB Business with FXPIG!
Related articles
The Rise of cTrader amidst MetaTrader’s Ban
Both MetaTrader 4 and MetaTrader 5 have been removed from the Apple App Store recently, which you can read about it here. This restriction has caused inconvenience for those who are trading on their iOS devices, myself included.
The impact on my trading is minimal, however, as I have switched and carried out most of my trading activities on cTrader for over a year now. Let me share my experience and thoughts on cTrader as there are a lot of traders searching for alternatives.
If you’re interested in downloading and testing out cTrader yourself, click here
cTrader vs MetaTrader
The following sections will be segmented into 3 main aspects so we can make comparisons and highlight the key differences between the two most popular trading platforms.
- Accessibility & Availability
- Functionality
- User Experience
Accessibility & Availability
Considering the recent incident with MetaQuotes, MetaTrader 4 and 5 are already out of the discussion if we wish to trade on our iOS devices. Even if we already have them installed on our iphones, further updates will not be available to us. There are doubts that the apps can perform as efficiently without continuous updates and I personally would not risk my capital without the best infrastructure in place.
cTrader on the other hand is clear from these restrictions. cTrader Mobile is available on both App Store and Google Play. It can also be downloaded as a Desktop App, or you can access cTrader Web on any device (Trust me it is better than Desktop App).
| Devices | cTrader | MetaTrader 4 / 5 |
| iPhone/ iPad | ✓ | X |
| Android | ✓ | ✓ |
| Desktop App (Windows) | ✓ | ✓ |
| Web Trader (MacOS/ Windows) | ✓ | X |
To sum this section up, cTrader beats MetaTrader in terms of accessibility and availability. Having a competent mobile app means traders can monitor and manage their trading positions on the go.
Remember the days when you can monitor and manage your trades on your iPhones? If you wish to continue enjoying this practicality, you either need to get another Android device or switch to cTrader.
Switch to cTrader
Functionality
If I had to list out all the powerful features the cTrader platform has over MetaTrader 4 and MetaTrader 5, it would make this article 10 pages long. To save time, I am going to share the key functionalities that I liked about cTrader compared to MT4.
Data and Information
i. Clients’ Sentiment
ii. Trading Central – Analyst View
Clients’ Sentiment
cTrader allows users to access clients’ sentiment information from the platform itself. It is strategically located right under the Quick Trade Buttons so traders can access the data and make trading decisions swiftly.
Sentiment Analysis has been a huge part of my personal trading and I have shared my notes here.
MetaTrader does not have a built-in sentiment indicator. However, traders can install third-party plugins to obtain the data.
Trading Central
Being one of the best technical analysis providers out there, Trading Central equips traders with in-depth market insights and actionable trade signals, helping you to make decisions wiser and faster.
FXPIG’s clients can access multiple tools from Trading Central for free, including
i. Analyst Views
ii. Economic Insights
iii. Featured Ideas
Click here to open an account with FXPIG and access Trading Central tools for free
My personal favorite has to be Analyst View as it adds confluence to my trade ideas.
There is a dedicated section for Trading Central Analyst View on the right panel, showing you the analysis for the pair that you are trading.
Key Information includes but is not limited to:
- Buy or Sell Preference
- Distance till target
- Potential monetary gains
- Direct Buy or Sell Button
- One click TP and SL setting
- Support and Resistance levels
- Trade explanations
Trading Central is available on both cTrader and MetaTrader. However, on cTrader, it is cleverly integrated into the platform to make your trading hassle-free, while you need to install a separate file for MetaTrader to access Trading Central.
Sign Up Now to get access to our Full Trading Central Tools.
User Experience
cTID
cTID was love at first sight for me. With a single login credential, we can link multiple cTrader accounts to the same ID. This allows traders to trade with one or multiple brokers and still use the same cTID, making account management easier than ever.
Customised Watchlists
Traders are free to create numerous watchlists across 7 asset classes that FXPIG offers. This feature is especially useful for those who trade multiple strategies. I have created dedicated watchlists for London and New York sessions so I could focus only on the pairs that I trade during that time (See Image below)
That is not all. We can also view our Watchlists in “Tile mode”. It is visual and provides more quick functions such as client sentiment and one-click trading.
We do not get this feature on MetaTrader. On MT4, you can only show and hide instruments in the Market Watch panel which makes it a hassle as we only get a single watchlist on MT4.
User Interface
The User Interface was the first thing I evaluated when I decided to start trading with cTrader. As it is a newer platform, the user interface is sleek and modern-looking, with useful shortcuts and functions at strategic locations.
The overall structure is split into three main sections. On the left, you can switch between Trading, Copying strategies, Creating automated trading, and Analyse your trading accounts easily.
In the middle, you will find your charts with full charting capabilities, including tools that are not available natively on MetaTrader such as Dots chart, tick timeframe, and VWAP. At the bottom, there is the Trading Terminal where we can manage our trading positions and get an overview of our account status.
Finally, we can find various intuitive blocks on the right. Placing orders, Trading Central, Symbol information, DOM, and many more are segmented in a clean manner. We can also hide the blocks that are not in use.
To protect your eyes, you can also switch between light and dark modes. Full customizations are available for your charts and templates. You can finally trade your way.
Compared to MetaTrader 4, the cTrader interface is miles better. It gives you a 21st-century vibe compared to Windows 95-styled MT4. You just need to invest a few days to learn and adapt to cTrader and you can then utilize it for the rest of your trading journey.
Performance Analysis
cTrader allows us to track our trading performance without connecting to any third-party platform. With its built-in Analyze function, traders can easily get detailed metrics on their trading history.
Statistics include but are not limited to:
- Win/Loss comparison
- Profit factor
- Equity Curve
- Volume traded per symbol
- Max balance drawdown
- Sharpe Ratio
This is by far the best tracking system that I have encountered. I get to reflect on my past trades, figure out what worked and focus on fixing my mistakes. This is severely underrated and I hope more traders can enjoy this feature.
More Ways to Earn: cTrader Copy
Wow! There are so many useful functionalities being built right into the cTrader Platform, even Copy Trading!
For those that are unfamiliar with Copy Trading, it is a simple way for traders to copy the trades of another trader. We can copy profitable strategies from an extensive list of strategies made available by the best traders worldwide.
A portion of the profits made, also known as the Performance fees will be paid to the Strategy Provider as an incentive for them to keep up their excellent performance, thus creating a win-win situation for everyone.
Another good news is – Anyone can be a Strategy Provider on cTrader as long as they have a cTrader account. This is a great way for you to elevate your trading career while generating additional revenue.
Check out the Strategy Provider guide here > How to be a Strategy Provider on cTrader Copy
Want to copy a strategy? Read this > How to Copy a Strategy on cTrader Copy
For the Advanced Traders
Seasoned traders demand the best trading conditions such as..
Execution speed and latency
cTrader is a newer platform and is built on the programming language C#, one of the most sought-after languages as of late. Try googling the best programming language to learn in 2022 and you will see C# on the list consistently. It is highly versatile and fairly easy to learn.
With lower latency, the execution speed on cTrader is comparatively faster compared to MT4. Do note that latency can depend on multiple factors including your physical location, devices, type of internet connection, etc.
FIX API
Traders employing High-Frequency Trading (HFT) may require FIX API. FXPIG’s cTrader caters to that and provides FIX API Connections for our clients. Traders can simply go to Settings and obtain the credentials, or just come on our Live Chat and we will assist you.
Conclusion
All in all, cTrader is hands down the best trading platform I have used with zero complaints. It is evident that cTrader put traders as their core focus. We can see the effort that the cTrader team is putting into their platform as they roll out updates after update consistently and the latest 4.4 version will be made available shortly.
Currently, there are only a handful of brokers offering cTrader but traders at FXPIG have been embracing the power of cTrader for the past 7 years. What are you waiting for?
Make The Switch.
PCE Price Index m/m on Friday came out slightly higher than expected, 0.6% vs. 0.5%, while the annual metric stands at 4.9%, beating expectations by 0.2%, underpinning the consistent growth in strength in the US Dollar.
It is a heavy week filled with news events to kick off the final quarter of 2022.
Monday
US manufacturing PMI is in focus, scheduled at 10 am EST
Tuesday
RBA cash rate, analysts are expecting a 50bps hike to 2.85%.
ECB Lagarde to speak at 11am EST.
Wednesday
NZD cash rate, expect a 50bps rate hike as well
OPEC Meeting – potential reduction of 500,000 barrels per day to 1 million BPD to support oil prices
ADP Nonfarm employment change
Thursday
BOJ Kuroda is to give a speech tentatively. It will be interesting to see what the Japanese has to say as USDJPY is slowly undoing their intervention and creeping up to 145 again as we speak.
Friday
NFP – 315k previous versus 265k forecast, market is expecting a slight slowdown in the labour market
Highlight for the day
The UK is reversing its Mini Budget plan. Kwarteng stressed that the chaotic market last week was due to a global issue, and not his plan. Markets are pricing in a lower rate hike from the BOE after this was announced, down from 200 basis points on 26th September to below 125 basis points now.
Let’s have a look at how Cable is reacting to the U-turn by the UK government.
GBPUSD
GBPUSD Daily
GBPUSD M30
The pair has recovered almost all of its losses since it first plunged to its all-time low last Monday.
On the thirty-minute timeframe, consecutive higher lows have been formed and there was a crossover of the 50 and 200-period simple moving average, signaling bullish intentions. Adding to the confluence is the slope of the bullish trendline is getting steeper, indicating an increase in buying pressure in the short term.
The pair is attempting to break through 1.1200 resistance right now as the European session is getting ready for Q4 2022 while adjusting to the latest update on UK’s fiscal policy. If the price closes above the resistance successfully, we may be looking at GBPUSD going back to the 1.1300-1.1400 range.
USDJPY
USDJPY H1
The dollar is slowly but surely rising against the Yen and it looks like a break above 145 is imminent, considering the longer-term bullish trend and also the fundamental factor working in USD’s favor.
USDJPY Daily
Using Analyst View from Trading Central, we receive a bullish confluence on our view. The immediate resistance to watch out for are 147.00, 152.00, and 155.00 as marked up on the chart.
Energies
USOIL
USOIL H1
US Crude is up 2.36% since Asia open in anticipation of a production cut that will be finalized in the OPEC meeting on Wednesday.
The pair is now on a minor rally, trying to close above 82.30 resistance. If that is successful, 86.35 will be our first target. Note that the global economic slowdown amidst rising interest rates is still limiting the upside and we are still in a bearish market structure from a bigger picture point of view.
Ru Yi
Trader, Technical Analyst
________________________________________________________________________________________
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Economic Calendar
| Day | Events |
| Monday | ECB President Lagarde speaks |
| Tuesday | Fed Powell speaks |
| Wednesday | Fed Powell speaks |
| Thursday | – |
| Friday | Core PCE Price Index |
FX
GBPUSD
GBPUSD H1
The Cable was sent into the ground in early Asian trading and we could have made 850 pips if we engaged in a short position as discussed in our previous analysis last Friday.
Weakness in Cable is largely attributed to the strength in the US dollar coupled with the new mini budget by UK’s new chancellor. The markets also believe that this is a policy error, hence the sharp fall in GBP. The BOE raising just 50bps while the Fed raising 75bps and promising more to come surely doesn’t help.
The pair has since recovered from its record low of 1.03565 and is trading 360 pips above that low.
Our preference is to wait for a retest of the 50% Fibonacci retracement and look for short opportunities from there.
There is also massive volatility in GBP across the board.
GBPJPY M30
GBPJPY has fallen by more than 630 pips during Asia but also recovered nearly 590 pips at the time of writing.
USDJPY
USDJPY H1
Following up on USDJPY, it is apparent that the dollar is gaining back momentum to push to the upside again. The pair has recovered almost 400 pips of the 543 pips crash. The only thing standing in the way is the broken trendline, acting as short-term resistance.
Once it breaks to the upside of the trendline, we will be looking for buy opportunities.
The Japanese government intervened last week but it is insufficient to ignite strength in JPY, whereas USD strength is prevailing. We are not going to shift our bullish sentiment unless the Japanese authority does something significant to their currencies again.
Precious Metals
Gold
XAUUSD H4 Source: TradingView
XAUUSD M30 Source: TradingView
Gold declined sharply, falling by $15.50, -0.95% during the early Tokyo session but has since recovered most of the losses. After falling to a 29-month low, gold is clinging on to its dear life near $1640.
A super hawkish fed is no good news for the safe haven. In an environment where hawks are dominant and interest rates are on the rise, the opportunity cost for holding gold increases because of its non-yielding nature. Investors would much rather keep their money in the bank, earning themselves lucrative returns. This will further suppress gold prices.
With that being said, our preference for gold in the short term is bearish.
We build our case based on a few confluences including
- Gold is in a bearish market structure. It is now trading in a bearish channel which is very much intact (Image 1). We are expecting a continuation of the higher timeframe trend.
- There were two bullish fakeouts as shown in Image 2 before a breakout to the downside. The fakeouts trapped some buyers and they are now stuck in their long positions if they haven’t been stopped out already.
- The bearish breakout from the consolidation was decisive. Even with the sharp recovery, the gold price is still trading well below ($15 away) the consolidation box.
- Macroeconomics- Rising interest rates and an ever stronger greenback.
Alternative Scenario
If prices close above the pivot at $1667 (the midpoint of the consolidation range), we may expect the price to continue rising until it meets the $1680 key resistance area.
US Stocks Markets
SP500
SP500 Daily
The stock market did not have an easy week either, losing 4.9% in the previous trading week. Certainly, tight monetary policies are not conducive for stock market performance. 3605 is our next key support and if it breaks, we may be looking at a further decline to 3250 support while fulfilling the descending triangle formation.
Ru Yi
Trader, Technical Analyst
________________________________________________________________________________________
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Here are some of the major events that took place this week
- FOMC
- Japan’s Intervention
- BOE rate hike
- SNB rate hike
- Fed Chair Powell speaks at 2 pm EST to end the week
The Fed raised interest rates by 75bps to 3.00-3.25% with the Fed Fund Futures signaling a terminal rate of 4.6% in 2023. FOMC is still debating between a 100 and 125-bps rate hike to end the calendar year. A hawkish stance is still firmly maintained, with the Fed reiterating that inflation is still rampant and they will continue to hike rates aggressively until inflation is contained.
On the other hand, BOE raised its interest rates for the 7th time, and this time it is a 50bps hike, bringing the interest rate to 2.25%. However, they have reduced their inflation forecast from 13% by the end of the year to under 11% and there are fears that the UK economy is already in a recession.
Swiss National Bank raised its interest rate by 75bps to 0.5% yesterday, ending the era of negative rates. This is a response to the heightened inflation rate in Switzerland, which hit a three-decade high of 3.5% last month. The bank is not ruling out further rate hikes.
Japan couldn’t withstand the increasing pressure that was put on their currency and as a result intervened yesterday. This was after the Bank of Japan stood firm on their loose monetary policy. Not a good timing, especially when the Fed had just in the previous day delivered a third straight 75bps hike and promised more to come. It is a significant event because the last time Japan did this was back in 1998 but the intervention can only be seen as a minor halt to the prolonged slide in Yen. Japan needs to tap into its $1.3 trillion foreign reserves to support the Yen.
USDJPY
USDJPY H2
USDJPY plunged by as much as 543 pips as the news of Japan’s intervention broke out. A minor recovery was seen and the pair is now trading near the 142.30 area.
From a technical point of view, USDJPY made a fakeout to a high of 145.90 before it sank. The drop also caused another fakeout to a low of 140.34. This is the reason why volatility is both good and bad for traders and we should always stay updated on current news events.
Fundamentally, a hawkish Fed and a dovish BOJ will only lead to a continued rise in the greenback against the Yen. Thus, we will be looking for long opportunities should the pair find support near 141.50 area.
GBPUSD
GBPUSD H1
BOE raised rates for 7 times this year. It did nothing to save the GBP from sliding against the US Dollar.
At the time of writing, GBPUSD is trading at levels that we have not seen in 35 years. 1.1400 was the major support that we all hoped for it to hold but it didn’t.
Provided that the Fed is going to continue raising rates, we will be looking for opportunities to go short when the pair retest any of the resistance zone marked.
Gold
XAUUSD H4
Gold has been consolidating in a $25 range for a week now but we did witness two fakeouts above $1680. Those can be seen as added confluences for our bearish outlook on gold with the next target near $1650. Powell speech later may influence how gold close for the week.
Stocks Market
SP500
SP500 H4
The SP500 did not fare well in an environment where borrowing costs are rising steadily. Capital is being pulled out from risk assets and flows into safer investment avenues like bank savings etc. as the opportunity cost is getting higher for not doing so.
With that being said, 3750 is a major support that will decide if the index is going to continue its fall or not. The index is currently in a bearish market structure – an expanding triangle formation.
Cryptocurrencies
BTCUSD H4
Bitcoin is flirting with 18500 key support as we observe a few minor bounces from this area. As mentioned earlier, it is getting less lucrative for investors to put their funds in risk assets, and from that, we can formulate a bearish outlook for Bitcoin.
If this support does break, there is a big space for Bitcoin to free fall with the next significant support near $13600.
Welf
Trader, Technical Analyst
________________________________________________________________________________________
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To recap this trading week…
OPEC+ on Monday decided to cut oil production by 100bpd in October to support the declining oil prices due to fears of economic slowdowns and renewed China’s lockdown.
RBA increased its interest rate by 50bps, matching market expectations. RBA maintained that more rate hikes will be coming as inflation is expected to peak at the end of the year, but these decisions are not on a pre-set path.
Canada goes big to tame inflation. BOC raised its interest rate by 75bps to 3.25% as forecasted. From a low of 0.25% in March to a 14-year high at 3.25%, BOC is by far the most aggressive central bank with their tightening and they are not done yet, with further rate hikes expected in the next meetings.
ECB added a whopping 75bps to its main refinancing rate to 1.25%, the highest level since 2011 in a similar effort to tackle inflation. ECB Lagarde also signaled more incoming rate hikes as inflation soared to 9.1% last month. However, the Euro may be affected more by gas prices.
ECB Lagarde is expected to give a speech in an hour. EU Economic Summit is taking place today to end the trading week.
Forex
EURUSD
EURUSD Daily
EURUSD had a nice recovery after it reached a low of 0.9865 and is currently trading 100 pips above parity. Investors are eyeing Lagarde’s speech. A firm hawkish stance from ECB may give some boost to the pair, but the energy crisis is still a major factor to consider.
Immediate resistance at 1.0115 which might be broken, but will soon be met by the descending trendline. Key support at parity.
USDJPY
USDJPY H4
Governor Kuroda finally say something about the jumbo moves in USDJPY. He told the reporters that BOJ will watch the exchange rate moves carefully after a meeting with the PM. The Finance Minister of Japan also stated that the government is keeping the door open to any options to help contain the rapid movement in its currency.
As a result, USDJPY has fallen 265 pips from its high of 145 at the time of writing. However, this may be seen as a minor retracement before a continued move up, at least testing the 145 levels again.
Short-term resistance stays at 145 while support is in the 141.50 area.
Energies
Crude Oil
USOIL H4
Although crude oil broke out from its bearish channel, it is still lingering around the channel from the other side. It did make a small bounce from the 82.20 support, but recessionary concerns are keeping the bulls in check. China’s covid curbs are also putting some pressure on oil prices. Production cuts in October may play a minor role to bolster oil prices.
Short-term support is the recently tested 82.20 while resistance is at $87.
Cryptocurrencies
Bitcoin
BTCUSD Daily
Bitcoin bounced off from its major support at 18500 and in the last 8 hours, we observed a rally of as much as 7.5%. This move may be relatively larger compared to its most recent price movements but it is still not much if we look at the major slump of 42% from 7 June to 18 June.
We may see Bitcoin continue to range between 22400 and 18500 in a risk-off market provided that most attention are being directed to interest rates, inflation, and tightness in energy supplies.
Welf
Trader, Technical Analyst
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Forex
The RBA is pretty much expected to raise rates by 50 basis points on Tuesday, investors will pay close attention to the possibility of further aggressive 50bps hike in October and November.
The Bank of Canada on the other hand, is looking for 75 bps on Wednesday, While it looks unlikely that BoC will continue to hike interest rate given Inflation appears to have peaked in the region.
The European Central Bank is expected to raise rates again by at least 50 basis points at its upcoming meeting. Euro inflation of 9.1% in August is well above analysts’ expectations and noticeably higher than the 2% target pressuring the ECB to curb it with aggressive rate hike. The rapid rise in cost of living is leading the markets to speculate a rate hike of 75 basis points this coming Thursday.
EURUSD
H4 Chart
EURUSD has been on a downtrend for months, sellers should be cautious on the limited upside on Dollar and market might be forming a bottom at parity (psychological level), forming buy pressure ahead of ECB rate hike on Thursday. ECB’s hawkish shift suggests we might see euro gain.
DXY
Dollar Index Daily Chart
Federal Reserve chair Jerome Powell is due to speak on Thursday, traders are to look for whether the Fed is inclined with another 75 basis point hike or if 50 basis point hike is also an option. A hawkish Fed will further push the dollar to 110-115 trading range.
While the dollar’s aggressive rate hike is pressuring other currencies, most of the Fed members expected to see rates well above 3% by the end of the year.
Commodity and Energy
XAUUSD
Gold has been trending down the 3rd week consecutively. Gold is looking to rebound to 1730s with weakening job growth and higher unemployment rate of 3.7% instead of the forecasted 3.5%. The main deciding factor for gold price in the coming weeks would be the FED’s decision on imposing a third straight rate hike of 75 basis point on 21st Sept. Investors should take note where higher yield increases the opportunity cost of holding gold, making gold unattractive to investors.
US OIL
Supply side shortages will likely keep Oil prices above 85.5. OPEC is due to meet on monday with high probability of production cuts talks which might push oil back to last week’s high.
The uncertainty over the demand outlook from sluggish economic growth and Covid curbs by China keeps oil prices in check. If a strong selloff does happen, oil will find value buyers at $78 range.
Gilbert
Trader, Technical Analyst
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With a lot of uncertainty about the Fed’s imminent monetary policy decisions, the non-farm payrolls report will be pivotal and stays in the spotlight until the end of the week. New jobs for August were expected to decline by almost half after a stellar performance in the previous print, with the consensus being 295k versus 528k in July.
Let’s shift our focus to how this event will steer the direction of the USD, and the different assets that are related to the dollar.
If the actual comes out lower than the forecast, we can expect the Fed to be less aggressive and raise interest rates by 50bps in their next meeting. On the flip side, if the actual print beat expectations by a significant margin say 350k+, it may swing the argument in favor of a 75bps hike. Furthermore, if the average hourly earnings m/m comes out higher than the expected 0.4%, it may seal a 75bps hike from the Fed.
Precious Metals
Gold
XAUUSD Daily
After going through an extended loss amounting to approximately $100 since its previous swing high formed in mid of August, gold is now trading near a critical support zone ($1680-$1700). Gold did make a minor recovery (+0.40%) since today’s open amid NFP and it is highly dependent on the upcoming data.
If we disregard fundamentals and look from a technical point of view, gold is poised for further losses with the momentum in the bears’ favor. 1680 is the last hope for gold buyers and if it breaks, gold may continue to slide until 1650 psychological level. Confluences for sellers include the widening gap between the two moving averages and the solid bearish channel.
The client sentiment collected from various sources points to a bearish outlook for gold with more than 84% of traders currently net long. It serves as a powerful contrarian indicator to back our technical analysis.
Please trade with caution as you may still get stopped out due to heightened volatility even if you are right on the eventual direction
US Stocks Market
SP500 Daily
SP500 found support yesterday near the 3950 area after an extended losing streak. There were not many movements in pre-markets as all eyes are on NFP. We do not expect 3950 to hold should the job reports come out stronger than forecasted as the Fed may hike more aggressively which is generally not conducive for the equity markets.
Forex
USDJPY
USDJPY Daily
USDJPY broke 140 key resistance with conviction before NFP thanks to the ever-stronger dollar. Considering the strong underlying bullish momentum, we can expect a spike to 141.50 area during NFP even if it doesn’t end the week above that level.
Energies
Crude oil
USOIL H4
Oil bounced off the $87 support on the expectations that OPEC may discuss output cuts during their meeting on 5 September. On the other hand, China’s Covid curbs may come back into play, limiting further price gains.
Welf
Trader, Technical Analyst
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