The laggard on the day is the Swiss franc, following the softer-than-expected inflation report here. USD/CHF is up 0.6% to 0.8806 now, running into a test of its 100-day moving average at 0.8807:

Besides that, the only other mover on the session has been the pound. GBP/USD is up 0.3% to 1.2660 after the UK jobs report earlier here. That said, the pair remains rangebound in the bigger picture as it settles back into the range between 1.2600 and 1.2800.

Elsewhere, EUR/USD and USD/JPY are both flattish at around 1.0774 and 149.38 respectively currently. The former continues to rest in and around the technical channels outlined here while the latter is waiting to see if there is any spark to ignite a test of the 150.00 mark.

It all comes down to the US CPI data later in the day now. That will be the key driver for trading sentiment in the sessions to come.

In other markets, stocks are down as traders heed some caution ahead of the main event. S&P 500 futures are lower by 20 points, or 0.4%, currently. Meanwhile, the bond market is rather lethargic with 10-year Treasury yields flat at 4.167%. Despite the slow mood there, things should pick up after the data release with eyes on the ceiling at the 4.20% mark potentially.

This article was written by Justin Low at www.forexlive.com.

Japanese
Candlesticks have been a crucial tool for Forex traders for many years. These
charting patterns offer valuable insights into market trends and price
movement, enabling traders to make well-informed decisions. Our article will
provide a comprehensive guide to understanding Japanese Candlesticks, including
the various common patterns and their practical application in Forex trading
strategies.

Fundamentals of Candlesticks

Prior to
going into the world of Japanese Candlesticks, it is needed to grasp their
historical background and inception. Candlestick charting has its roots in
Japan, dating back to the 18th century. It gained widespread recognition thanks
to the contributions of financial analyst Steve Nison.

The idea
behind candlestick patterns is to visually illustrate price movements during a
particular timeframe. Every candlestick holds crucial data regarding the
opening, closing, high, and low prices of a trading session.

A
candlestick is made up of three main parts: the body, upper shadow (wick), and
lower shadow (wick). The body shows the range between the opening and closing
prices, while the shadows indicate the high and low prices. Through careful
analysis of these elements, traders can acquire valuable insights into market
sentiment and possible price reversals.

Reversal
patterns can indicate a shift in trend direction, while continuation patterns
indicate a brief consolidation or retracement before the trend continues.
Through precise identification of these patterns, traders can make necessary
adjustments to their trading strategies.

Types of Common Candlestick
Patterns

There
are two main categories of Japanese candlestick patterns: single candlestick
patterns and multiple candlestick patterns. Traders should be aware of both
bullish and bearish patterns that may signal potential buying or selling
opportunities.

Therefore,
we put together a selection of the most popular candlestick patterns that we
believe will be valuable to you in forex trading. These patterns can
effectively indicate price reversals and breakout points in the market.

Single Candlestick Patterns

Single
candlestick patterns provide quick indications about the market sentiment. Some
notable examples include:

• Doji: Doji is well-known for its ability to balance between buyers and
  sellers, resulting in a candlestick that has an almost coincident open and
  close. A small, horizontal line on the chart represents the moment of
  market indecision, indicating a Doji’s appearance.
• Hammer: A hammer candlestick is a unique pattern that technical analysts
  use to indicate a possible bullish reversal in the trading of a financial
  security. A bullish reversal pattern formed by a small body and a long
  lower shadow. Its dependability becomes apparent when it emerges following
  a long period of decline and lines up with established price support
  levels.
• Shooting Star: A shooting star candlestick is a price pattern that occurs when the
  price of a security opens, rises, and then falls back down to a level
  close to the opening price. Shooting star candlestick patterns indicate a
  potential shift in price direction, suggesting a possible bearish trend.
  Shooting star candlesticks consist of a compact body, an extended upper
  tail, and a brief lower tail.

Multi-Candlestick Patterns

Multi-candlestick
patterns are formed by a combination of two or more consecutive candlesticks.
These patterns offer valuable insights into market reversals and continuations.
Examples of popular multi-candlestick patterns include:

• Engulfing Pattern: A bullish engulfing candlestick is a type of candlestick pattern
  characterized by a green candlestick that opens lower than the previous
  day’s close and closes higher than the previous day’s opening. One way to
  identify a potential trend reversal is by observing a small red
  candlestick followed by a larger green candlestick the next day. A
  reversal pattern where the second candle completely engulfs the prior
  candle.
• Three White Soldiers: This candlestick pattern is commonly used by traders to identify
  potential trend reversals or the continuation of an existing uptrend. A
  series of three candlesticks with minimal shadows at the top or bottom
  close at progressively higher levels, creating a distinct pattern.
• Evening Star: The Evening Star is a candlestick pattern that indicates a potential
  bearish reversal. It is formed by three candles: a large bullish
  candlestick, followed by a small-bodied candle, and finally a bearish
  candle. Evening Star patterns indicate that a price uptrend is approaching
  its conclusion. Contrary to the Evening Star, the Morning Star pattern is
  considered a bullish reversal candlestick pattern.

Applying Candlestick Patterns in Forex
Trading

Utilizing
Japanese Candlestick patterns in Forex trading can significantly enhance your
trading strategy. However, it’s essential to understand how to effectively
apply these patterns to maximize their benefits and mitigate risks.

• Timing Trades with Candlestick Patterns

One of the primary advantages of candlestick patterns is
their ability to help traders identify potential trade setups and market
reversals. By mastering the timing of trades using candlestick patterns,
traders can improve their entry and exit points, leading to more profitable
trades.

To effectively time trades, it’s crucial to combine
candlestick patterns with other technical indicators and price action analysis.
For example, if you spot a Hammer candlestick pattern forming after a prolonged
downtrend, you may wait for confirmation from other indicators, such as a
bullish divergence in the RSI or a bullish engulfing pattern on higher
timeframes, before entering a long position.

• Recognizing Price Levels

Another valuable aspect of candlestick patterns is their
ability to identify important support and resistance levels on the price chart.
By analyzing candlestick patterns near these key levels, traders can anticipate
potential reversals or breakouts, providing valuable trading opportunities.

For instance, if you observe a Doji pattern forming near a
significant support level on the EUR/USD chart, it could indicate indecision in
the market and a potential reversal in the downtrend. However, it’s essential
to wait for confirmation from other technical indicators or price action
signals before entering a trade to ensure higher probability setups.A personal
anecdote underscores the significance of patience when trading with Japanese
Candlestick patterns. Once, I noticed a Doji pattern forming on a major
currency pair, signaling potential market indecision and a reversal. While I
was tempted to enter a trade immediately, I exercised caution and waited for
confirmation from other technical indicators.

Ultimately,
my patience paid off as the Doji pattern was followed by a prolonged bearish
candle, indicating a continuation of the downtrend. By resisting the urge to
rush into a trade and carefully analyzing the market conditions, I avoided a
potentially costly mistake.

• Risk Management Using Candlestick Patterns

Effective risk management is crucial for long-term success
in Forex trading. While candlestick patterns can offer valuable insights into
market sentiment and potential price movements, they should always be used in
conjunction with proper risk management techniques.

Traders can manage risks using candlestick patterns by
setting stop-loss orders based on the pattern’s reliability and their risk
tolerance. For example, if you enter a trade based on a bullish engulfing
pattern, you may place your stop-loss below the low of the engulfing candle to
limit potential losses if the trade goes against you.

While
candlestick patterns provide valuable insights into market sentiment and price
movements, it’s essential to consider the broader market context when making
trading decisions. Factors such as economic news, geopolitical events, and
market sentiment can influence the reliability of candlestick patterns.

Ignoring
the larger market context may result in misleading signals and potential
financial losses. Therefore, traders should always assess candlestick patterns
in conjunction with other technical indicators, fundamental analysis, and
market trends to make well-rounded trading decisions.

In
conclusion, mastering the application of Japanese Candlestick patterns in Forex
trading requires a combination of technical analysis skills, risk management
strategies, and patience. By timing trades effectively, recognizing important
price levels, and considering the broader market context, traders can harness
the power of candlestick patterns to improve their trading performance and
achieve consistent profitability.

This article was written by FL Contributors at www.forexlive.com.

It’s a slight drop compared to December with it being the 25th straight month below the 50-year average of 98. There are lingering concerns surrounding the economy and inflation but small business owners are hoping for a soft landing still.

This article was written by Justin Low at www.forexlive.com.

USD

• The Fed left interest rates unchanged as
  expected while dropping the tightening bias in the statement but adding a
  slight pushback against a March rate
  cut.
• Fed Chair Powell stressed
  that they want to see more evidence of inflation falling back to target and
  that a rate cut in March is not their base case.
• The latest US GDP beat
  expectations by a big margin.
• The US PCE came
  mostly in line with expectations with the Core 3-month and 6-month annualised
  rates falling below the Fed’s 2% target.
• The US NFP report
  beat expectations across the board by a big margin.
• The ISM Manufacturing
  PMI
  surprised to the upside with the new orders index, which is considered a
  leading indicator, jumping back into expansion. Similarly, the ISM Services PMI beat
  expectations across the board with the employment sub-index erasing the prior
  drop and prices paid jumping above 60.
• The US Consumer
  Confidence report came in line with expectations but
  the labour market details improved considerably.
• The market now expects the first rate cut in May.

CAD

• The BoC left interest rates unchanged at
  5.00% as expected and dropped the language about being prepared to hike if
  needed.
• The latest Canadian CPI beat expectations across the board with
  the underlying inflation measures remaining elevated.
• On the labour market side, the latest report beat
  expectations but we saw a contraction in full-time employment and a fall in
  wage growth.
• The Canadian PMIs improved in
  January although they remain both in contractionary territory.
• The market expects the BoC to start
  cutting rates in June.

USDCAD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that USDCAD remains
stuck in a big range between the 50% Fibonacci retracement level and
the resistance around
the 1.3540 level. There’s not much to do here other than waiting for a breakout
but in the meantime, traders can “play the range” by buying at support and
selling at resistance.

USDCAD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the pair recently
bounced on the 61.8% Fibonacci retracement level of the entire US NFP rally.
The sellers will want to see the price breaking lower to increase the bearish
bets into the 50% Fibonacci retracement level. The buyers, on the other hand,
will keep on stepping in around the 61.8% Fibonacci retracement level to
position for a rally into the 1.3540 resistance targeting a break above it.

USDCAD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the price
has been diverging with
the MACD
falling into the 61.8% Fibonacci retracement level. This is generally a sign of
weakening momentum often followed by pullbacks or reversals. In this case, it
might be a signal of an impending reversal, but the price will need to break
above the 1.35 handle to confirm it. In the meantime, we could have another
smaller range here.

Upcoming Events

Today we have the main event of the week, that is,
the US CPI report. On Thursday we will see latest US Jobless Claims figures and
the US Retail Sales. Finally, on Friday, we conclude the week with the US PPI
data and the University of Michigan Consumer Sentiment survey.

This article was written by FL Contributors at www.forexlive.com.

Registration is now live for Finance Magnates African Summit 2024 (FMAS:24), the year’s largest professional event bridging the B2B and B2C space. The landmark event is returning for its second year this May 27-29, helping connect regional and local providers with global brokers, brands, and much more.

2024 looms as a key year for Africa, boasting an impressive resume of companies, startups, and overall potential. These factors have led to an enormous amount of hype and interest from the online trading industry, culminating in the hosting of several notable events, including FMAS:24.

Register Today for FMAS:24 to Unlock Africa’s Potential!

Following last year’s inaugural event, FMAS has quickly developed itself into a household name as one of Africa’s largest events. The marquee event returns to Sandton City, a growing financial hub in South Africa. FMAS:24 will once again be held at the prestigious Sandton Convention Centre in Johannesburg.

This year’s event is expected to also draw a sizable attendance, including leading talent, the biggest local providers and names, and many other noteworthy experts yet again from around the world. Attendees can expect to take a deep dive into multiple verticals represented at length, such as the online trading, payments, digital assets, and fintech space.

With only a few months to go until the doors of this event swing open, the time to reserve your seat is now and can be done by accessing the following link.

What to Expect from FMAS:24?

FMAS:24 is a can’t miss event that starts with professionalism and includes a diverse range of individuals available for doing business with. Attendees can expect to network, engage, and connect face-to-face with the following participants:

• Forex/CFD Brokers
• Institutional Brokers
• Affiliates & IBs
• Traders & Investors
• Educators & Market Experts
• Fintech & Payments Brands
• Crypto & Digital Assets Businesses
• Technology & Liquidity Providers
• Press/Media
• Regulators
• Start-ups
• Investors/VCs

In terms of content, FMAS:24 has got you covered featuring a robust slate of panel discussions, webinars, workshops, keynote speeches, and much more. These informative sessions provide the ideal forum and platform for traders and industry professionals to learn and gain valuable insights into new trading techniques, technologies, and trends in Africa and beyond.

Look for the event to attract upwards of 2,000+ attendees, 70+ exhibitors, and 50+ speakers, making FMAS:24 one of the largest events in Africa in 2024. The summit kicks off with its annual Networking Blitz Party.

This premier networking party in South Africa represents an opportunity to engage and meet top-level leaders, speakers, and the biggest brands across multiple industries. Furthermore, the Blitz Party will showcase all the luxury that Sandton as well as everything that South Africa has to offer.

Prospective attendees can also explore last year’s event highlights, which featured parties, sessions, and many other things. This year will be no different, with the event providing no shortage of entertainment and networking opportunities for all attendees.

Stay tuned over the next month for more updates on FMAS:24, including the rollout of the detailed agenda, and more!

This article was written by FL Contributors at www.forexlive.com.