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Chinese Yuan Devaluation Creates Forex Trading Opportunities
Today in forex news the Chinese Yuan devaluation created strong movement and trading opportunities for forex traders. The Chinese Yuan (CNY) was allowed to appreciate 2% against the US Dollar (USD). The People’s Bank of China made this move due to the recent economic slowdown there, but was still very sudden and unexpected. This was the biggest one day drop in the value of the Yuan in 20 years. Chinese Yuan devaluation against the US Dollar by 2% is hoped to boost the Chinese economy.
This devaluation caused a strong reaction in the forex market. Currencies in the Asian region and currencies of Chinese trading partners were affected by the devaluation. The Japanese Yen (JPY), the Australian Dollar (AUD), and the New Zealand Dollar (NZD) were all affected by today’s devaluation. Most of the price movement and opportunities for forex traders today resulting from the Chinese Yuan devaluation were on these three currencies.
Chinese Yuan Devaluation, Impact On Traders
The AUD and NZD both tumbled on the Chinese Yuan devaluation news, but the Euro (EUR) also strengthened. This produced strong movements in the EUR/AUD and EUR/NZD pairs. The EUR/CAD also moved up strong as all commodity based currencies reacted to the devaluation news.
The impact of the devaluation news can produce intraday or trend based trading profits for forex traders. As you can see below, the trading opportunities on the AUD pairs alone was significant. The live indicators shown below, The Forex Heatmap® indicated buy signals on the EUR/AUD, EUR/NZD and EUR/CAD for intra-day or potential longer term buys. All three of these pairs are currently in up trends. This is a valuable lesson on how scheduled or unscheduled forex news or global events can bring profits to any trader. Using this type of real time signal system is highly beneficial.
The movements shown are significant intraday price movements. A 1.69 percent movement in the AUD/USD is about 120 pips, and a 0.79% movement in the EUR/AUD is about 135 pips. Since the EUR/AUD is trending up on the higher time frames, traders can use the Chinese Yuan Devaluation news as and entry point into the trend. Traders can also move their stops to break even, thus preserving their upside potential for even more pips. All traders should consider using The Forex Heatmap® in their trading tool set, along with some simple forex trend indicators.
Currency Devaluations and Interventions
It is important to remember that government interventions and devaluations have been tried many times in the past with various currencies. These devaluations and short term price fluctuations are artificial, and usually short term, due to the high liquidity of currency markets. The overall market forces like the larger time frame trends and interest rate direction will always be the strongest guide for the direction of currencies like the Chinese Yuan, plus the 8 currencies we follow with our trading system.
Forex Alert System AUD Weakness
Today in forex trading The Forex Heatmap® had a trade alert for AUD weakness and the AUD (Australian Dollar) pairs. The AUD weakness drove significant price movement on all pairs in the AUD group. There was also some US Dollar (USD) strength in the market. The AUD/USD had a very strong movement to the downside. This pair is currently ranging and should continue down to the next major support area at 0.6700, which is just below the current price. The visual alert system you see below is The Forex Heatmap®, which provides visual forex trading alerts for 8 currencies and 28 currency pairs total.
Forex Trading Charts EUR/CHF Analysis
This is an analysis of the EUR/CHF trading charts using the D1 and H4 time frames, and the principles of multiple time frame analysis. With multiple time frames you always check the higher time frames first, then drill down to the smaller time frames for trade entry confirmation in the same direction.
Use these easy to set up exponential moving averages as your trend indicators for all nine (9) of the time frames, M1 to MN. In this case the D1 trend above is stalling at resistance. Traders should be looking for a new down trend to form on the D1, assisted by reading the smaller time frames like H4 and H1.
You can see that the H4 time frame is now pointing down. So wait for the first breakout point to be breached at a price of 0.9570 on the EUR/CHF (yellow line), then you can look to sell this pair. When the price alert is breached make sure the EUR is weak or the CHF is strong, or both, using our visual tool called The Forex Heatmap ®. Below the 0.9570 breakout point this pair has lots of room to drop on the D1 cycle, so the money management ratio is excellent on this pair on the sell side.
Monitoring the support breakout point of 0.9570 is easy using audible price alerts. Then conform the sell with the heatmap to ensure your risk is low on entry. combines with trading in the direction of the trend.
If forex traders ues multiple time frame analysis consistently on the higher time frames, like the H4 and larger, they would have more success trading while avoiding choppy market conditions. Pairs like the EUR/CHF along with the top 28, most liquid pairs becomes a reality with these simple techniques.
Currency Strength Indicator AUD Strength
Today in currency trading the AUD (Australian Dollar) strength drove strong price movement and profit opportunities for forex traders.
The AUD/USD and AUD/CAD moved up strong after the Asian session interest rate news from Australia. These movements continued overnight and into the main session. These movements were strong but the longer term trends on these two pairs are still pointing down. So we scale out lots and take some profit. The currency strength indicator you see below is The Forex Heatmap®, which is an excellent visual map of the forex market that provides live buy and sell signals for 8 major currency groups, including the AUD pairs. The heatmap also has a real time push alert system to notify traders of consistent movements across 8 currencies and 28 pairs total.
Currency Trading Signals EUR Strength
Today in currency trading the Euro (EUR) strength drove price movement on all EUR pairs. The EUR/USD moved strongly higher, this pair is somewhat choppy but it is starting a new trend on the D1 time frame, and it has upside potential from here. The EUR/JPY also moved strongly higher, this pair has a strong uptrend in place and should continue to the next resistance at 129.50. Since both pairs are in uptrends on the higher time frames, we will continue to provide written forex trading plans to buy these pairs going forward.
The live trading signals you see below are from The Forex Heatmap®, which provides buy and sell signals for 28 currency pairs including the EUR pairs and 7 other currency groups. Having a strong trade entry management system like this allows traders to scale out lots and move stops to breakeven, creating consistent trading profits. Momentum based trade entry systems are superior to all others.
Forex Trends USD/CAD
The USD/CAD is trending lower on the largest time frames, like the D1 time frame trend shown below. The W1 time frame is also trending down. This pair has now at the critical 1.4000 support area, noted in yellow. There is no nearby support past this price the next support is hundreds of pips away.
We will continue to follow this trend going forward, setting sell plans and looking for sellsignals. If you see a sell signal on the USD/CAD with The Forex Heatmap® in the main trading session, we would strongly consider selling this pair. The trend charts you see below are 5/12 exponential moving averages we apply to all 9 time frames on metatrader.
Forex Trend Charts NZD/USD 7-15-2015
The trend charts on the larger time frames show that the NZD/USD is currently in a downtrend. The current price is around 0.6550, you can set a price alert here to notify you of any movement. When the alert hits look for sell signals on The Forex Heatmap® to confirm the sell trade. The overall pip potential is excellent, possibly down to the 0.5500 support area, or even lower, which is around 1000 pips below the current support. No significant nearby support levels below the current price. The chart you see below is for the MN time frame, which is the largest time frame we use when conducting multiple time frame analysis on the 28 pairs we monitor.
Forex Trading Signals NZD Weakness
Today in forex trading the NZD (New Zealand Dollar) was weak on all pairs, and we saw live trading signals for these pairs on The Forex Heatmap®. The NZD weakness drove significant price movement. Many of the NZD cross currencies were neutral or slightly strong. So the combined pip totals on the NZD pairs was in the hundreds of pips today. The NZD/USD broke short term support levels and the overall pip potential remains strong as this pair is trending down larger trends and time frames. The GBP/NZD broke short term resistance to the upside and is also trending on the larger time frames and trends, we see ongoing potential here as well in the uptrend. The real time trading signals you see below are from The Forex Heatmap®, which provides live trading signals for 8 currency groups and 28 pairs.
The chart setup you see below is the best in the forex industry. We use the metatrader profiles to set up the charts to match the forex heatmap for trade entries. The metatrader profiles can also be used for overall market analysis and trend analysis on the higher time frames with our forex market analysis spreadsheet tool. Using a chart setup like this will improve your trading and pip totals. You can navigate 7 charts at a time on any time frame from currency to currency just by pressing hotkeys on your keyboard. Any available pips will always be on your screen with this best in class chart setup.
CLICK ON THE CHARTS TO VIEW FULL SCREEN
Forex Trend Analysis AUD/USD 7-8-2015
The AUD/USD trend analysis shows that this pair is in a down trend on the larger time frames. The image below is the MN time frame and trend. This pair has a current support level at 0.7370, shown by the red line, you can set a price alert here. When the price alert hits you can check The Forex Heatmap® signals to verify any sells. Overall potential is excellent, down to as low as 0.6300, noted by the red lines. This is over 900 pips of potential, so this is excellent risk/reward ratio for a trade. Better risk management is what forex traders need, trade after trade.
Where Can I Get Accurate Forex Signals?
Accurate and easy to understand real-time forex signals are available from Forexearlywarning.com. These signals are hedge fund quality and the best in the business. The live trading signals from Forexearlywarning are in the form of an easy to interpret real time visual map called The Forex Heatmap ®. The signals can be used by all forex traders, even beginner traders, who want the highest quality professional alerts and signals.
The heatmap works for 8 currencies and the top 28 most liquid pairs. All pairs comprised of the USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD currencies are included on one single webpage for easy viewing and market overview in 60 seconds or less. Look at the example signals below. This live signals shows the GBP and JPY pairs on the heatmap. In one trading session, the GBP/JPY moved nearly 250 pips in one trading session because one currency was consistently strong and the other currency was consistently weak. Very powerful !
Here is another example of our real-time trading signals. With consistent AUD (Australian Dollar) strength signals, trading this group of pairs is also possible. The AUD strength drove the EUR/AUD down abround 100 pips in one trading session. If the EUR/AUD is trending down on the larger time frames you can stay in the trade for even more pips.
If you would like to look at more example trade entries using the forex heatmap signals click on the link for 10 more example buy and sell trades on different pairs. In some of the examples you can see how to monitor 7 pairs at once using the metatrader profiles. The chart setup will match the heatmap configurations. So you can monitor all of the GBP, JPY or AUD pairs at once on one screen. Then navigate from currency to currency using the hotkeys on your keyboard.
How do you know when to get in front of the computer to use these forex trading signals from the heatmap? Use some professional forex alert systems like our desktop and mobile app push alerts on the Telegram app. You get a push alert sent to any or all of your devices when one or more currencies have consistent momentum, then you can make trade decisions farly fast from the heatmap signals.
Where Do Traders Currently Get Their Signals From?
Right now Forexearlywarning is the clear leader in giving forex traders professional alert systems and accurate forex signals. But most of the other signals providers we have seen have very low quality signals based on one pair with buy and sell arrows or faulty off the shelf technical indicators that look like the ones below. High risk low return of just a few pips.
These forex signals are nothing more than pretty pictures, mostly “stock photos” used by many websites. None of these websites actually have any real signals at all or offer some type of trade copier program. There is no description of how these signals are generated and these signals are for scalpers with very poor money management. Just a few pips of potential profit for risking a trade entry a larger stop order.
On the other hand, the signals from The Forex Heatmap® are logical and it makes data driven trading decisions possible. Momentum based trade entry signals with strong movement cycles allow traders to move thir stop to break even then manage the pips in their account by scaling out lots. This is far superior to the other signal systems which have poor money management characteristics.




















