<p style=““ class=“text-align-justify“>We are going back to a familiar theme in markets today, that being buy the dollar, sell everything else. This comes as we see traders digest the happenings this week and lean towards the possibility of a more hawkish/aggressive Fed. USD/JPY is now inching just above 135.00 as 10-year Treasury yields are threatening to move above the December highs of 3.90%:</p><p style=““ class=“text-align-justify“>Despite the dip buying in equities this week, <a target=“_blank“ href=“https://www.forexlive.com/news/are-the-cracks-finally-showing-up-in-the-market-20230217/“ target=“_blank“ rel=“follow“>which finally relented yesterday</a>, it looks to be a case where the bond market gets it right once again. Treasury yields have been trending higher through the week and have continued to pull higher after bond sellers drew the line when yields pushed up against the 200-day moving average (blue line).</p><p style=““ class=“text-align-justify“>The dollar is continuing to stay perky at the moment, keeping at the highs against the euro, yen, franc, aussie and kiwi while maintaining gains against the remainder of the major currencies. This comes as equities continue to stay pressured with S&P 500 futures still down 28 points, or 0.7%, currently.</p>

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

<p style=““ class=“text-align-justify“>You would think that with the BOC moving to the sidelines, the loonie would’ve struggled much more but against the dollar, it isn’t so much so the case as the greenback also experienced a weaker January mostly. But as the tides turn this week, we are seeing the pair bounce off a double-bottom pattern just below 1.3300 to run up against its 100-day moving average (red line) once again at 1.3515.</p><p style=““ class=“text-align-justify“>Buyers need to break above that and the 19 January high of 1.3520 in order to resume the upside push back towards 1.3700 again.</p><p style=““ class=“text-align-justify“>Otherwise, it might be a tough one from a technical perspective as the pair continues to trade in between both its 100 and 200-day (blue line) moving averages – with the November lows around 1.3225-35 also adding to key support for any look to the downside.</p><p style=““ class=“text-align-justify“>But for now, the price action mirrors that of most other dollar pairs as highlighted earlier in the day, that is we are seeing them run up against key technical levels but not quite breaking them just yet.</p>

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

<p>On the daily chart below, we can
see that the price has failed at the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 1681 as <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-bullard-finally-cracks-the-markets-resolve-20230216/“>Fed’s
Bullard</a> (hawkish, non-voter) signalled a possible 50 bps at the March meeting
and a higher terminal rate needed than the one projected in December 2022. </p><p>We can also see that the price
has been <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-relative-strength-index-rsi-20220426/“>RSI</a> at the resistance, so the
momentum was not there and since the fundamentals are now against further
upside, it’s unlikely to see higher highs. </p><p>On the 4 hour chart below, we can
see that the buyers will need to hold any of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> levels with the 61.8% having more strength as
there’s also a previous resistance that now may have turned <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. Given the fundamentals though,
we should see sellers in control for now.</p><p>On the 1 hour chart below, we
have a textbook divergence setup with a king’s crown pattern. What you will
generally see is the price making a higher high that is divergent with the
momentum indicator, in this case the RSI. Then you need to wait for the price
to break the low giving the first signal of a change in trend. </p><p>Finally, you wait for the price
to pullback to a Fibonacci retracement level, in this case we can see
confluence of the low with the 38.2% level and the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. This should be the entry for sellers. </p><p>The target is generally one of
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-utilizing-fibonacci-extensions-20220422/“>Fibonacci
extension</a> levels, so either 127.2% or 161.8%. Here we can see that 161.8% has
more value as there’s also previous resistance on the left.</p>

This article was written by ForexLive at www.forexlive.com.

<p>On the daily chart below, we can
see that the price is now getting closer to the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> zone at 1920. That will be the
last line of defence for the buyers as a break lower should give sellers
conviction that the sentiment is really turning. </p><p>The sentiment changed yesterday
as <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-bullard-finally-cracks-the-markets-resolve-20230216/“>Fed’s
Bullard</a> (hawkish, non-voter) acknowledged that he was open to the idea of
another 50 bps hike in February and he’s still open for it at the March meeting.
Moreover, he keeps his view of a higher terminal needed than what was projected
in December 2022. </p><p>A break lower of the 1920 support
will also turn the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> downward giving another signal of a change in trend. The target for the
buyers in case they manage to hold the line would be again the high at 2030 and
the first target for the sellers in case we see a break lower would be
1720.</p><p>In the 4
hour chart below, we can see that the price managed to break the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> but then went sideways as the
support at 1920 saw buyers defending the line. </p><p>We saw a
similar rangebound price action in other markets as there’s little conviction
from both sides on what’s next for the economy. It’s likely that we will see
the support holding today unless the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>Fed speakers today</a> sound very hawkish. </p><p>In the 1 hour chart, we can see
the recent catalysts and the absolute choppiness that’s been going on in the
markets for over a week now. The levels are set though: get below the 1920
support and we should see the sellers coming in aggressively, on the other
hand, get above the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 1970 and we should see the
buyers regaining strength. </p><p>On the fundamentals side, the
tides are turning. The moderation in <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ class=“terms__main-term“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa“ target=“_blank“>inflation</a> seems to be slowing. Economic
activity seems to have picked up. And the labour market remains secularly
strong. The market is sensing that the Fed will need to do more and the risk
that something will break at some point increases by the day. </p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>More often than not, the kiwi tends to move in tandem with the aussie. But from the charts, this isn’t so much so the case this time around. While the aussie is still not breaking down just yet, the kiwi is right on the cusp against the dollar after having seen its attempt to break above 0.6500 run into a brick wall.</p><p style=““ class=“text-align-justify“>I want to say that in part, markets are needing to reprice RBA expectations a little but to keep things simple, it’s all about the technicals at the end of the day.</p><p style=““ class=“text-align-justify“>And in the case of NZD/USD, the rejection at 0.6500 has since seen the pair push lower and is now reaching a potential breaking point for the kiwi to the downside.</p><p style=““ class=“text-align-justify“>The pair is now running into the January lows of 0.6190-00 and a break below that could set off the next downside leg. That said, sellers should not get too comfortable just yet as there are still some additional layers of support to work through.</p><p style=““ class=“text-align-justify“>The confluence of the 100 (red line) and 200-day (blue line) moving averages at 0.6158 and 0.6185 respectively will also be key levels to be mindful of, alongside the 38.2 Fib retracement level of the upswing since October at 0.6145.</p><p style=““ class=“text-align-justify“>I would argue that sellers will need to firmly break those levels as well to really vindicate a potential drop next towards 0.6000 again.</p>

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

<p>On the daily chart below, we can
see that the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4175 is still holding and the
buyers are having a hard time breaking it. You can feel the battle between
buyers and sellers as recently the soft-landing narrative changed into the no-landing
one where the Fed may have not done enough to depress growth and return
inflation back to the 2% target. </p><p>After the “wow” <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report, we saw the <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-cpi-64-yy-vs-62-expected-20230214/“>US
CPI</a> data
coming within expectations but those expectations were high with M/M readings
too high for a return to 2%. The disinflationary trend seemed also to have
slowed. </p><p>Yesterday we also got a big beat
in <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-retail-sales-30-vs-18-expected-20230215/“>Retail
Sales</a>, which is another bad signal for the Fed and may require a higher
terminal rate than they projected in December 2022. </p><p>In the 4
hour chart below, we can see that the constant knocking on the 4175 door
coupled with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> may form an <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>ascending
triangle</a> pattern. </p><p>The price
can break on either side of the triangle, as the buyers may have the strength
to break higher and lead to higher momentum or not enough strength exhausting them
and lead to a sell off as they cover positions and the sellers exacerbate the
downward momentum. </p><p>In the 1 hour chart below, we can
see more closely the recent catalysts and the market not doing much other than
chopping around. The price is basically in no man’s land and the best strategy
would be to wait for a clear breakout. </p><p>Today we will get the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>US Jobless Claims</a> data and although it’s likely
that we will see another round of choppiness after some volatility, big
surprises should move the market. </p><p>A big miss would again signal the
strength of the labour market, but a big beat would be less expected and
probably lead the market to speculate on weakening labour market going forward.
</p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>The high roughly 10 minutes ago hit 7,387.29, which eclipses that seen in January last year, and marks a new record high for France’s benchmark stock index. This continues to reaffirm that there really needs to be a distinction between European and US equities at the moment as the optimism in the former continues to run high.</p><p style=““ class=“text-align-justify“>The record high for the CAC 40 comes after we also saw a record high climb – which is continuing to run now – for UK’s FTSE 100 index. Next in line seems to be Germany’s DAX, which is now about 4.4% below its own record high. That seems like a stretch but so does saying that we could see a 12% move in seven weeks, which we are seeing since the turn of the year.</p>

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

<p style=““ class=“text-align-justify“>Risk sentiment is steadier so far in European trading and that is seeing the dollar keep slightly lower on the session. The retreat in the greenback isn’t anything too notable, ranging around 0.2% to 0.3% against the major currencies bloc. Even though we did get major economic data releases this week, it doesn’t seem to have been enough to trigger much appetite in dollar pairs.</p><p style=““ class=“text-align-justify“>I’ll let the charts do the talking once again but TLDR: Nothing much has changed since this post on Tuesday <a target=“_blank“ href=“https://www.forexlive.com/news/what-are-the-key-levels-to-watch-for-dollar-pairs-ahead-of-the-us-cpi-data-today-20230214/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>EUR/USD is still largely caught in a bind after the failure to get above 1.1000 on the January rally. The rejection there now puts key resistance at the figure level while key support lies closer towards the January lows closer towards 1.0500. For now, price action is sort of consolidating right in the middle of that range below 1.0800 and that suggests a lack of directional momentum in play.</p><p style=““ class=“text-align-justify“>As for GBP/USD, the pair saw gains last month stall at the December highs around 1.2443-46 and then made its way back towards 1.2000 again. We did see a retest of the figure level yesterday and so far, buyers are still holding on. That said, bids on that side are acting as a decent support before we get to the key one in the form of the 100 (red line) and 200-day (blue line) moving averages at 1.1892 and 1.1939 respectively.</p><p style=““ class=“text-align-justify“>Adding to that support layer will be the the January lows in the region around 1.1841 to 1.1900 on the daily chart.</p><p style=““ class=“text-align-justify“>Much like EUR/USD, price needs a break on either side of the resistance and support levels noted to really indicate the next momentum move in pair.</p><p style=““ class=“text-align-justify“>Moving over to the antipodeans, first we have AUD/USD which has seen its strong start to the year thwarted by the August highs at 0.7125-36. Since then, we are seeing a bit of a retreat back under 0.7000 with buyers failing to get back above the figure level in recent attempts.</p><p style=““ class=“text-align-justify“>That is keeping sellers interested but they themselves have struggled to firmly break below the 19 January low at 0.6870 – at least on the daily chart. That remains a key short-term support level to watch before the 200-day moving average (blue line) comes into play closer to 0.6800 currently.</p><p style=““ class=“text-align-justify“>Then, we have NZD/USD which has seen its upside momentum stall again at around the 0.6500 mark – as it did back in December. The recent climb down has seen price action be caught in a bit of a consolidation territory since the end of last year. Key support lies closer to the December and January lows around the region of 0.6200 to 0.6230.</p><p style=““ class=“text-align-justify“>But just below that will be the 200-day moving average (blue line) at 0.6185, so any real push to the downside will require some real gusto to break below said support levels before the momentum gets going.</p><p style=““ class=“text-align-justify“>As you can see, most dollar pairs are not really going anywhere at this point as price action is caught in between key support and resistance levels. In other words, there needs to be a stronger trigger for price to break out and for a new momentum play to come about for traders. And we are just not there yet.</p><p style=““ class=“text-align-justify“>The only decent mover on the week seems to be USD/JPY, partly driven by higher bond yields.</p><p style=““ class=“text-align-justify“>Buyers look to be breaking away from the sequence of lower highs, lower lows as price pushes above short-term support around 132.87 to around 134.00 yesterday. Still, key support lies closer to the late December and January highs around 134.50 to 134.77 but I would just pin that at 135.00 as one can expect offers lined up at the figure level.</p>

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

<p>Growth
and value are the two main techniques for <a target=“_blank“ href=“https://fxrevenues.com/signup“ target=“_blank“ rel=“follow“>investing in stocks</a>
and mutual funds. Growth investors look for businesses with substantial profit
growth, while value <a target=“_blank“ href=“https://fxrevenues.com/“ target=“_blank“ rel=“follow“>investors</a>
look for equities that seem to be undervalued in the market. </p><p>Together,
the two types can assist your portfolio in becoming more diverse because they
complement one another.</p><p>Growth
stocks are businesses that have recently experienced above-average earnings
growth and are anticipated to continue generating high-profit growth, though
there are no guarantees. </p><p>Enterprises
that are considered to be „emerging“ growth companies have the
potential to experience rapid earnings growth but lack a track record of doing
so.</p><p>Before
choosing to purchase a stock when investing in stocks, investors do so for two
reasons. First, we anticipate that the stock price will increase beyond the
date of acquisition. Second, because the shares will consistently pay
dividends. </p><p>Growth
Stocks </p><p>Growth
stocks do much better than value equities, the opposite of growth stocks.
Investors consider it an „excellent and costly“ stock (expand the
business and utilize significant investment). Some corporations do not pay low
cash flow and dividend yield or dividends. The following factors are considered
when determining which stocks are growth stocks.</p><p>·
Low dividend yield, below industry or market average.
For business growth, working capital needs to be set aside.</p><p>·
P/E Ratio is greater than the industry or market
average. These stocks have excellent sales and profitability. Therefore
investors are willing to pay a high cost for them. </p><p>·
P/BV Ratio is more significant than the industry
standard or the market average.</p><p>Value
Stock</p><p>Consider
the following when determining the factors that decide which stocks are value
stocks.</p><p>·
High Dividend Yield, above the industry average or the
market average</p><p>·
The P/E Ratio is below the industry average or the
market average, indicating that the company will do worse than its peers or
worse than predicted. </p><p>·
P/BV Ratio, below the industry or market average.</p><p>The
Risk and Return of Value Stocks</p><p>Value
companies are viewed as riskier than growth stocks despite their potential
upsides because of the market’s skepticism. Value stocks need to be perceived
differently by the call to become profitable because they are considered
riskier than emerging growth companies. A value stock is frequently more likely
than a growth stock to generate a higher long-term return due to the underlying
risk.</p><p>Investing
in both growth and value stocks</p><p>How should an investor proceed? </p><p>One
choice is to invest in both plans equally. Together, they broaden the equity
portion of a portfolio and provide opportunities for gains in either direction.</p><p>Because
the market moves in cycles of value and growth, assess your investing approach
and consider rebalancing your portfolio regularly to ensure that it maintains
your chosen allocation.</p><p>FINAL
OVERVIEW</p><p>It
could take a considerable time for a valued stock to recover from being
undervalued. Therefore, buying a value stock means that this emergence might
never occur.</p><p>Investors
who want to reach their financial objectives must fully comprehend the stock’s
fundamental characteristics and risk. The two most popular stock categories are
value stocks and growth stocks.</p>

This article was written by ForexLive at www.forexlive.com.

<p>To assist
you in creating a watchlist of <a target=“_blank“ href=“https://finaguide.com/“ target=“_blank“ rel=“follow“>possible investments</a>, we discussed
how to locate stocks that you comprehend, have meaning for you, and are
competitive in their industry in the previous chapter.</p><p>This is
where the research ends for the majority of individuals. They invest their
money in the market irrationally and pray for the best.</p><p>This
approach has flaws, chief among them being that it needs to assess a company’s
financial stability. Using economic measures to evaluate a company’s worth as
an <a target=“_blank“ href=“https://finaguide.com/Registration“ target=“_blank“ rel=“follow“>investment and potential for future profit</a> is crucial.</p><p>Why Stock
Metrics Matter</p><p>Stock
metrics are used to evaluate, contrast, and monitor stock performance. These
measures are recognized as a quantitative evaluation technique. Value investors
and financial planners also use them to create a picture of a stock’s
performance.</p><p>In addition,
equities may be frequently evaluated using this information to track their
performance and develop long-term investing plans.</p><p>When
selecting an investing plan, a wide range of stock measurements may be employed
to great advantage. These investment criteria have been created over time to
enhance effectiveness and adhere to industry norms.</p><p>THE KEY
METRICS TO VALUE A STOCK </p><p> By calculating these financial parameters, you
can determine if the company you are considering is reliable and capable of
generating excellent returns year after year.</p><p>1. Return on
Capital Invested</p><p>Return on
Invested Capital (ROIC) should be the first of the „Big 5 Numbers“
that you consider (ROIC). This is the annual return a company receives on the
money it invests in itself.</p><p>The ROIC
gauges how well a business uses the money to generate profits. It is the single
most significant indicator of how successfully a firm is doing, and it offers
invaluable advice on whether you should consider investing in that business.</p><p>2. Sales
Growth Rate</p><p>The Revenue
Growth Rate, often known as the Sales Growth Rate, is a relatively simple
concept. It is the pace at which a company’s overall revenue increases (or not)
year over year.</p><p>3. Growth in
Earnings Per Share</p><p>Earnings Per
Share, often known as EPS Growth Rate, is the third of the Big 5 Numbers. This
figure illustrates the trend in how much the company is making per ownership
share over a specific time frame.</p><p>Net profit
is divided by outstanding shares to determine earnings per Share (EPS).</p><p>4. Equity
Growth Rate</p><p>The equity
growth rate demonstrates whether and by how much a company’s equity has increased
or decreased over time.</p><p>Why is it
essential that a company’s equity is increasing?</p><p>The fact
that a company’s equity is increasing suggests that it has enough extra cash
(after paying its bills) to invest in equipment that will boost future sales.</p><p>5. Rate of
Operating Cash Flow Growth</p><p>The
Operating Cash Flow Growth Rate is the last financial indicator to consider.
This gauges the growth rate of operational cash, and the amount of money that
enters the bank due to company activities.</p><p>FINAL INSIGHT</p><p>Remember
that choosing a firm you enjoy is just one aspect of making a wise purchase. </p><p>Financial
metrics must be used to evaluate a company’s financial standing for you to feel
confident in its future performance and, consequently, the success of your investment.</p>

This article was written by ForexLive at www.forexlive.com.