EarnForex.com Monthly Newsletter
| | | | Hello traders! Welcome to the latest issue of EarnForex.com newsletter — May 2019. In this issue of EarnForex.com newsletter, I will remind you about the most important Forex-related events of the last month and will also show you the list of the site's latest updates. | | EDITORIAL: In Forex, New Chart Candles Don't Start on Time 🤔 | | If you expect new hourly candles to start exactly XX:00:00, then you will be disappointed when analyzing the actual charts. When looking closely at the chart candles (especially on lower timeframes — M1, M5, M15), the candles are strikingly misaligned. The open of the new candle often does not coincide with the close of the previous one. The reason is not just volatility. This happens because a new candle is added to the chart only when a new tick arrives in the new period. The scenario is pretty same for all timeframes (except weekly), but on hourly, it looks like this: - The hour ends and the old candle gets its final close.
- Immediately, a new hour starts.
- But, unless a new tick arrives the same moment, no new candle appears.
- A new tick arrives.
- A new candle is added to the chart.
The chances are, the new tick will carry completely different bid/ask quote, causing the new candle's open to deviate from the previous candle's close. Sometimes, it might even happen so, especially on M1 timeframe, that during slow market hours, the new period passes without any ticks, and a candle gets skipped altogether. This makes charts look rather weird sometimes. This also affects trading strategies that rely on candle's open coinciding with previous close. Additionally, it is not possible to predict the exact time of a new candle appearing on the chart, which means that indicators and expert advisors cannot rely on candle/time synchronization. However, for most traders, this should not be a big issue. | | Overview of the major currency pairs' performance in April | | EUR/USD — after rising somewhat during the first half of the month, the pair fell strongly and then corrected to near its opening rate. It was at the maximum at 1.1323 on April 12, at its minimum at 1.1110 on April 26, finishing the month at 1.1214. GBP/USD — was in a steady decline with a moderate correction during the final days of the month. The highest monthly rate was at 1.3196 on April 3, while the lowest — at 1.2865 on April 25. GBP/USD finished April trading at 1.3031. USD/JPY — was rising in a kind of an inclined double top pattern. The pair rose to as high as 112.40 on April 24, reaching a bottom at 110.80 on April 1 and closing the month with the 111.42 rate. AUD/USD — rose during the first half of the month, then dropped abruptly and then restored some of its losses in a correction. The monthly high was at 0.7205 on April 17, the monthly low — at 0.6988 on April 25. Trading ended at 0.7048 for this currency pair. USD/CAD — was going sideways during most of the month, posting a small inverted V-pattern near the end. The maximum level for this pair was 1.3520 on April 24, while the minimum — 1.3274 on April 17. The month's trading ended at 1.3387 for USD/CAD. | | Fundamental background of the past month | | In April, the US dollar was mainly affected by uncertainty about monetary policy of the Federal Reserve in the future. Domestic macroeconomic data, developments in trade wars, and the general market sentiment were also affecting the greenback. EUR/USD did not perform that bad in April considering the divergence between the neutral stance of the Fed and the dovish stance of the European Central Bank. Concerns about economic slowdown in the eurozone were also weighing on the currency. The Great Britain pound continued to react to Brexit news, though domestic macroeconomic data also affected the currency. While the Japanese yen was reacting to domestic news from time to time, the currency was mostly driven by the general market sentiment, specifically by fears of global economic slowdown. While the Canadian dollar was reacting to the market sentiment and moves of crude oil prices, the major event for the currency in April was the shift of the Bank of Canada towards more dovish bias. As it often happens, the Australian dollar was reacting to news from China. As for domestic events, the Aussie was under pressure from the shift of the monetary policy stance from hawkish to neutral. The same factors were affecting the New Zealand dollar - China's macroeconomic data and monetary policy stance of the domestic central bank. Gold was often reacting to the investors' sentiment, usually trading inversely to the US dollar. | | Interest rate changes in April | | Republic of India | 6.25% | -0.25% | 6.00% | You can see the current interest rates by the world's central banks in our interest rates table. | | Top five Forex brokers of the last month | | Until the next newsletter issue! | | That is all for the May issue of the EarnForex.com newsletter. If you have questions, comments or just want to see something else in the next monthly issue, please let us know. | | |
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