Posted by
NigelGee on October 29, 2009 |
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In the year 2007, all the FOREX traders were introduced to a very new kind of trading option which is known as FOREX online option of trading in order to simplify the procedure of trading in the market of foreign exchange and even to lower down the risks that are associated with this kind of trading, so that all the traders can deal easily in the market of foreign currency. While all the options of trading dealing with FOREX futures remains really very popular, trading options really decrease the level of risk that a trader can face in future and it also increases the level of profitability in the foreign market of exchange.
Most of the FOREX brokers who are present online offer all their customers various FOREX options. These are the options which are very much similar to the options that are traded in the terms of stocks. Investors are the people who actually make a deal in the market of FOREX options. All the traders who think of doing this kind of trade will need to have a clear cut idea about various types of symbols that are present in the chains or charts of FOREX market. This is really very true in the case of foreign currencies because they have their own codes which are presented via the option of FOREX trading.
There are several advantages that are associated with the option of FOREX online trading. For one person, the risk is which is associated with it is much lower as compared to the risk which is associated when an investor is trading solely in the area of currencies. The price which is actually paid for trading an option is the only amount that is at stake or at risk, and all this depends on the trader that whether he or she wants to exercise an option or not. This is the actual thing that secures the trader’s position for a much longer frame of time and that too in the case of a volatile environment that is known as the market of foreign exchange.
In the terms of FOREX trading, cross currency generally refers to specific pairs of currencies which do not include the currency of U.S. which is U.S. dollar. It is really very common in FOREX market to exchange any foreign currency with U.S. dollars before you start the procedure of trading. In the case of cross currency, there is no need for a trader to go through all that.
With the help of all this, a FOREX traders can actually make a large number of trades in the field of different currencies without even relying on the sudden fluctuation that arises in the price of U.S. dollars.
Tags: Forex Trading, fx trade, Trading Forex
Posted by
BettyBoop on October 28, 2009 |
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USD/CAD:
We have noted several times a formation we refer to as a Step pattern. More commonly this is identified by Lower Lows and Lower Highs and vice versa. We picked up on this pattern emerging on a 4 hours chart. We identified the possible start of this pattern shortly after the BOC publicly declared it’s sentiment for a “weak Canadian Dollar”. We assured you that there would still be time to catch this move even if you could not trade the actual news.
We suggested that you wait for the Step to appear and buy on the dip which was a confirmation of our pattern formation. On the graph that it is depicted near the 3 and a yellow circle. The exit for taking PNL we had at 1.0660 a prior support resistance point.
INSERT GRAPH
EUR/USD:
The Squeeze Play. We talked about this move where we are seemingly forced into a breakout. In one of our earlier pieces we mentioned that our experience told us not to bet on the Squeeze Play, meaning trade against the direction of the existing trend. I must admit we got carried away by the hoopla of crossing 1.50.
So the question you all should pose” is why in this case do you bet against the trend when one of the number one rules of technicians is never bet against the trend”. The answer is based on the number two rule of technicians and that is; trade for the outcome that has the highest statistical probability of occurring. To explain this further lets pose a question. Why didn’t the market make this move a while ago similar to the recent strong moves in CHF & AUD?
INSERT CHART
The answer is the Strength of the move was deteriorating in advance of 1.50. Every trader had their eye on 1.50, but obviously no one was a real buyer (for now) otherwise at 1.4830 when momentum started to stall we would have had traders continuing to bid up the EUR. Lastly, when price action was negligible on the big cross of 1.50 that should have been another tip that there were no big orders lined up to continue buying north of 1.50.
We added a MACD to indicate when the momentum started to wane. There are number of overbought tools on your platforms that you can use, from Stochastics and Oscillators to something as simple as the RSI.
Analysis by http://www.golearnforex.net
Tags: daily technical analysis, forex analysis
Posted by
NigelGee on October 28, 2009 |
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USD Dollar (USD)
The Dollar strengthen during yesterday trading session as Confidence among U.S. consumers unexpectedly fell in October for a second month. The Conference Board’s confidence index dropped to 47.7 from a revised 53.4 in September. NASDAQ decreased by 1.2% and Dow Jones slightly rose by 0.14%. Crude oil rose by 1% closing at 79.55$ a barrel after a volatile trading session as investors wait for the oil inventories today. Gold (XAU) weakened by 0.7% closed at 1035.4$ an ounce. Today, Core Durable Goods Orders are expected at 0.6% vs. -0.3% prior, New Home Sales are expected to rise from 429K to 443K.
EURO (EUR)
The Euro weakened versus the Dollar for the third day in a row on concern a rally in stocks and commodities can’t be sustained. M3 Money Supply came out worse than expected at 1.8% vs. 2.1% forecast. Overall, EUR/USD traded with a low of 1.4770 and with a high of 1.4926. Today, German Prelim CPI is expected at 0.1% vs.-0.4% previously.
EUR/USD – Last: 1.4811
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Resistance
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1.4824
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1.4927
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1.5046
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Support
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1.4770
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|
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British Pound (GBP)
The Pound strengthened against the Dollar after the Confederation of British Industry\’s distributive trade\’s survey reported sales balance rose to +8 in October from +3 in September, better than economists\’ forecasts of a rise to +5. This is the fastest pace of growth since December 2007. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6438. No economic data expected today.
GBP/USD – Last: 1.6358
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Resistance
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1.6438
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1.6636
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1.6693
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Support
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1.6286
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1.6250
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Japanese Yen (JPY)
The Yen rose against the Dollar for the first time in 6 days as a plunge in Treasury yields after the record $44 billion auction in two-year notes made the Dollar less attractive to Japanese investors. USD/JPY traded with a low of 91.70 and with a high of 92.32. Retail sales came out at -1.4% vs. -1.5% forecast. No economic data expected today.
USD/JPY-Last: 91.18
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Resistance
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91.57
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92.19
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92.32
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Support
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90.77
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90.48
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Canadian dollar (CAD)
The Canadian Dollar appreciated from a three-week low, gaining for the first time in four days amid speculation its decline was too big to be sustained after it reached a key technical level. Overall, USDCAD traded with a low of 1.0626 and with a high of 1.0716. Today, BOC Gov Carney Speaks.
USD/CAD – Last: 1.0664
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Resistance
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1.0696
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1.0717
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|
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Support
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1.0630
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1.0500
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1.0450
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Research by http://www.ufxbank.com
Tags: Daily Forex Review, daily review
