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Posts Tagged ‘currency online’
The Euro Posts Gains Versus the Dollar
Due to bad US job reports and after the forex trading pair reached a new high level ever since May, the euro was able to post gains versus the dollar. As for the German Industrial Production, it came out at -0.6%, which was worse than the anticipated 0.9%. The German Trade Balance is anticipated to go up from the prior 10.6B to 12.4B. The EUR/USD exchanged at a minimum of 1.3156 and a maximum of 1.3333. Because the pair is able to post results above the 1.3130 support level, the momentum for the EUR/USD pair can be considered positive.
The British pound was also able to post some gains versus the dollar due to the negative US job reports. However, the Manufacturing Production posted a result of 0.3%, which was worse than the anticipated 0.5%. The PPI was anticipated at -0.4%, but it came out at -1%. The GBP/USD forex pair exchanged at a high of 1.5995 and a low of 1.5838.
The Euro Hits a Three-Month High
As the euro bounces back from its abysmal numbers that were posted earlier this year, forex trading activity has been a buzz. The euro just posted a three-month high against the dollar, showing that the euro is indeed on its way to recovery. Investors still have reasons to worry, though, as debt problems continue to threaten another fallout for the euro. For now, at least, the EUR/USD pair is threatening to push past the 1.3200 mark, as it traded at a high of 1.3195 and a low of 1.3055 on August 3rd.
The strengthening of the euro is also due in part to the weakening of the US dollar, which is currently suffering from a slow down in US economic growth. Gold only posted minimal gains of 0.1% to close at $1,185.4 per ounce, while crude oil increased by up to 3% to close at $81.34. As for the stocks market, Dow Jones gained by 1.99% and NASDAQ by 1.80%.
Trading With the Trend in the Forex Market
Trading in the Forex market has to be done methodically. The first step is to choose which currency pairs you want to trade. It is after this that you have to consult the technical analysis of the market. This is to identify trends of the chosen currency pairs and trade with them as far as possible. This is the way an investor can profit from trading currency online.
Trading with trends or identifying trends sounds rather simple. Neither of these two activities is really that simple. It takes experience, patience and knowledge to identify trends that emerge from time to time in the Forex market. To identify trends investors can get help from technical analysis charts which are available for different time spans. Trading can be categorized as long term, intermediate and short term. Trends also correspond with these time spans. Different factors impact the outcome of trends and investors should trade take note of these factors when trading currency in the Forex market. For example, a long term uptrend indicates that the trader should purchase the currency pair. A downtrend on the other hand indicates that the trader should sell the currency pair. Most long term trends that we see are dominated solely by interest rates.
Trading with the trend is the best for anyone interested in profits from the trade of currencies. This actually takes a lot of time and patience since it is an art that has to be cultivated by traders. One fascinating fact about the Forex market is the ability that a trader has to profit from upward trends, downward trends and even from the sideways trends. The secret is to follow a trend or go along with it as that is where the money is. Going against a trend is never recommended as the cost of losing can be quite high.
In the case of intermediate trends and the short term trends they are impacted to a lesser degree with changes in the interest rates and are more dependant on the changes as can be seen in the fundamental analysis. Even if you are trading for the short term you should keep an eye on the long term trends in the market so as to get a better feel for the trade. Sometimes, you will see different indications which are contrary to each other when looking at different time spans. The best times to enter the market are shown by charts when all three charts for the different time spans aligns in the same general direction. This can also be used to confirm a trend when you see one.
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