- Benefits of Trading In Forex Market
- Use Effective Trading Strategy to Make Money
- Understanding the Term Forex Hedging
- Beginners Guide to Trade Forex
- Forex Trading: Get the Best Trading Strategy While Hiring the Perfect Broker to Trade Forex
- Three Basic Steps to Trade While Using Forex Swing Trading Strategy
- Trading Under the Guidance of Forex Mentor
- Take a Glance on Forex Day Trading Strategy
- Get the Education Though Demo Trading
- Managing Account Properly With Managed Forex Account
Archive for October, 2009
Daily Review 30/10/2009
USD Dollar (USD)
The Dollar fell against most of its counterparts after better than expected GDP increased investor\’s appetite for risk. The Gross Domestic Product was released at 3.5% vs. the 3.1% expected. Initial Jobless Claims came out slightly worse than expected at 530K. After 4 straight days of drops Wall Street headed for a steep rise after the GDP showed that the U.S. economy expanded at a 3.5% annual pace in the 3Q and fueled stocks. Dow Jones jumped by 2.05% to 9,963 and the NASDAQ rose by 1.84%. Crude oil jumped by 3.19% closing at 79.93$ a barrel as the surprising US economy expansion signaled for a potential increase in oil demand. Gold (XAU) trades at $1,047. Today, Personal Spending is expected at -0.4% vs. 1.3% previously and Employment Cost Index is expected unchanged at 0.4%.
EURO (EUR)
The Euro continued towards its fourth monthly rise against the Dollar as the U.S.’s return to growth renewed optimism a global recovery will quicken, aiding demand for higher-yielding assets. German Unemployment Change came out better than expected at -26K vs. expected 15K. European markets rose more than 1%. Commodities recovered from previous losses and posted important gains. Overall, EUR/USD traded with a low of 1.4682 and with a high of 1.4857. Today, European CPI Index is expected at -0.1% vs. -0.3% previously.
EUR/USD – Last: 1.4830
|
Resistance |
1.4880 |
1.4925 |
1.4970 |
|
Support |
1.4770 |
1.4720 |
1.4680 |
British Pound (GBP)
The Pound climbed against the Dollar for a fourth day after reports showed U.K. mortgage approvals increased more than forecast last month and the U.S. returned to growth in the third quarter. Overall, GBP/USD traded with a low of 1.6337 and with a high of 1.6602. Today, Nationwide Housing Price Index is expected at 0.7% vs. 0.9% previously.
GBP/USD – Last: 1.6560
|
Resistance |
1.6640 |
1.6700 |
1.6765 |
|
Support |
1.6475 |
1.6410 |
1.6350 |
Japanese Yen (JPY)
The Japanese currency fell during the European session and continued its plunge after the release of a government report that showed Japan’s jobless rate unexpectedly dropped for a second month, reducing demand for the relative safety of the Japanese currency. Overall, USD/JPY traded with a low of 90.24 and with a high of 91.60. Today, The Bank of Japan (BOJ) Press Conference is expected. The interest rate is expected unchanged at 0.1%.
USD/JPY-Last: 91.30
|
Resistance |
91.80 |
92.20 |
92.30 |
|
Support |
91.05 |
90.83 |
90.50 |
Canadian dollar (CAD)
The Canadian Dollar climbed from a 3 week low against the Dollar as stocks and commodities rallied after the US GDP report showed the American economy grew in the third quarter for the first time in a year. Overall, USD/CAD traded with a low of 1.0654 and with a high of 1.0820. Today, Canada\’s The Gross Domestic Product (GDP) is expected at 0.1% vs. 0% previously.
USD/CAD – Last: 1.0670
|
Resistance |
1.0750 |
1.0820 |
1.0865 |
|
Support |
1.0630 |
1.0585 |
1.0545 |
Research by http://www.ufxbank.com
FOREX currency trading system
The actual FOREX trading system which deals with FOREX currency is the kind of trading system, which lets all its FOREX traders to buy one specific currency and to sell out the other one simultaneously. This is a real good platform which is available for trading. It is actually that are of trading where you can always participate in the great game of currency trading and you can even make lucrative amount of profits just by purchasing and selling various pairs of currency.
According to some of the very basic rules of trading systems which deals with FOREX currency, when the monetary value of a specific currency falls down then that particular currency should always be purchased and when its price rises up, then the currency should always be sold off. However in order to be a successful trader, you must know details about some of the basics of FOREX trading. You need to have full fledged information about the trading system before you start using the trading system of FOREX currency. The trading system which is used for dealing with FOREX currency is relatively the new venture into the big financial world. Trading in the FOREX market with the help of FOREX currency trading system, is so big that near about three trillion dollars of transactions take place here and that too on everyday basis in the
Different pairs of currency are used while using the trading system of FOREX currency and these currencies are usually traded and quoted with a very specific price of ‘bid’ and ‘ask’. The ‘bid’ is defined as the price at which the broker is very much willing to buy a pair of currency and in the same way ‘ask’ is defined as the price at which he or she is willing to sell.
There are actually more than 60 pairs of currency that are available in a FOREX currency trading system in order to trade on. However, there are only four pairs of currency that usually dominate the trading system of FOREX currency. These are as follows:
EUR/USD: European dollar vs. U.S. Dollar
GBP/USD: British Pound vs. U.S. Dollar
USD/JPY: U.S. Dollar vs. Japanese YEN
USD/CHF: U.S. Dollar vs. Swiss franc
These are the pairs of currency which are used to generate around 85% of the overall volume that is generated in the FOREX market.
The concept of base/counter currency helps in illustrating that what is actually happening in a FOREX transaction. This gives you an opportunity to short-sell the specific currency with no restrictions. In the trading system where traders are dealing with FOREX currency, short-selling is the thing which happens you sell a stock or currency at first and then you try to buy it back at a much lower price later.
GoLearnForex Daily Technical Analysis
AUD/USD:
The AUD continues its recent retrace. Many traders use different time frames for different currency pairs. The longer the time frame the more valid the pattern you are charting is. Moving Averages are basic tool that even the most sophisticated trader needs to always be cognizant of. The markets tend follow the moving averages generated off of the daily charts.
In Chart below I use a moving average from an 8 hour chart. I strongly encourage traders to be vigilant of at least checking a weekly, daily, 8 and or 4 hour chart and then any time frame less than 4 hours that you may want to look at.
INSERT CHART
You can see that the yellow line representing the SMA 50 was breeched and prices continued a steady fall (The Red line is the 100 SMA). There are also a number of near candle formations that support this price depreciation.
Circled in blue is a near Falling Three Candle pattern. Typically you have a red candle followed by 3 or so small green candles that are contained by the original red candle. Following the last green candle is another red candle with price closing below the original red. The Falling Three pattern is nearly followed by Three Black Crows. This candle pattern forms when you have the candles each open in the midsection of the proceeding candle but also close lower than the proceeding candle. This pattern nearly forms between the 2 white lines.
GBP/USD:
This pair has been range bound since May. When a pair trades in a range, price is confined to a narrow margin of highs and lows. In the Chart below the 2 red lines represent the range support and resistance lines.
The 2 red boxes indicate when minor breakouts have occurred. The tops and bottoms of the boxes would be your absolute stops depending on the handle you entered the trade at. Another point of consideration is the 50 SMA and 100 SMA. You can see that the SMA’s are also moving sideways. Price typically pops when it passes above/below a significant SMA. With SMA moving into a sideways march we are approaching congestion on this pair and that should signal another breakout. Obviously if the dollar continues to strengthen as it has GBP should be headed south.
INSERT CHART
Analysis by http://www.golearnforex.net
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