How the professional traders will trade the year 2017 -trading CFDs
The year 2016 has given many trading opportunities to the traders even through trading was extremely difficult. The forex market suffered from an extreme level of uncertainty in the global market due to the pending interest rate hike decision by the FED.There dollar gained its first bullish momentum in the market during the U.S presidential election held on 8th November 2016.Most of the traders were very much worried about Mr. Trump winning and thought the dollar will lose its strength in the global market. But during his victory speech, Mr. Trump surprised the whole world by saying that they are going to increase the fiscal spending and going to implement tax cut policy in the state. This creates an extreme level positive attitude in the U.S consumer and pushed the dollar up against its all major rivals.
In the last FOMC meeting minute the FED also hike their interest rate on the basis of 25 points and this gave the green bucks the strongest boost of the year. The dollar index rallied high to its 14 years highs. During that event, trading CFDs was extremely difficult as most of the traders experiment extensive volatility in the market. To be precise the last two-month performance of the U.S economy was significantly great and it made the dollar broadly stronger against its all major rivals. But traders are thinking that all the dollar might lose its strength in the global economy. In the next year since most of the bulls will take rest for a while. The energy sector was pretty unstable in the year 2016 since the price of oil sharply dropped in the global economy. However, the oil found its first support in the global market after OPEC announced a production cut in oil. After the announcement, the price of oil sharply rallied in the global market showing a nice bullish momentum in the market.
The year 2017 is going to extremely crucial for the traders. Most of the traders are currently confused about the ongoing strength of the US dollar and they are thinking that the dollar bulls might fail in the near term future. Most importantly all the currency pair in the global market is trading near a critical support level and if the dollar weakens in the near future then we will see a strong bullish rally in the market against the green bucks. However, traders should be extremely cautious about selling the dollar at the current moment as FED has projected three rate hike in the next year. The central bank will also pressure the FED for at least two rate hike before the month of November 2017 so that they can adjust their current inflation rate. Adjusting the inflation rate is extremely important since a higher inflation rate affects the economic performance of the country in a negative way.
So fundamentally the dollar is still holding its ground in the market and it’s ready to start its bullish momentum again. Most the investors in trading CFDs are also worried about the next year the market has not given any clear clue to the traders rather all the pairs are no trading at a critical zone in the marketing the eyes of trained professional the beginning of the year 2017 will be extremely difficult for the traders but if the traders manage to ride the trend then they will make a decent profit in the next years. All the investors are currently staying the sideline to make sure that they trade market with the best setup. Professional price action traders are looking to buy at the retracement in the EURUSD pair but many leading analysts is suggesting it as an aggressive attempt from the traders.
The market has ceased its movement to great extent due to the Christmas holiday. Most of the traders are now currently staying the sideline to make a decent profit in the market. The overall sentiment still remains bullish for the USD for the next year but there might be a slight bearish retracement in the USD index. In the last trading week, the USD index fell from its 14 years high in the market and traders are thinking that its prior indication of losing the bullish strength of the dollar. Most of the leading economist researcher are thinking that it might be a bear trap for the green bucks. Most to the novice trader will be trying to buy the EURUSD and GBPUSD pair or in another word will sell the green bucks. Technically the green bucks are little bit weak at the current moment but if you look at the fundamental sector then you will notice that it has strong bullish potential in the market.
The price of gold is also trading near a critical support level. The current support level is extremely important for the traders since if the price breaks these level then we will see a strong bearish move in the precious metal price. However, if the dollar fails to hold its momentum in the market the will see a strong bullish rally in the gold market.to be precise there is strong bullish or bearish run is waiting in the gold market. So if you are looking to trade the gold make sure that you buy after the release of negative U.S economic data. But if the FED manages for through rate hike in the next year then we will see a major drop in the price of gold. On that event, those who are trading CFDs will have a good trading opportunity in the market. But the extreme level of care should be taken since the market sentiment is mixed at the current moment.
Creative writing by Samantha Jones
Samantha Jones | Writer & Editor
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