Posted by
BettyBoop on November 2, 2009 |
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GBP/USD:
The Pound has been range bound for some time. It is trading between 1.6650 and 1.61. Price action above or below those levels has lead to a number of false breakouts. Interestingly enough, if you draw a Fibonacci Retracement from the Pound’s high at 2.1160 in 2007 to the Pound’s low just below 1.35 in 2009, you will notice that the 38.2% Fibonacci level is at 1.6422.
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That level is significant because over the last 6 months we have had more candles extend through this level than above or below it. On the Chart is the 50 day MA in yellow which also had been hovering along the same Fibo line. In October the 50 day MA dipped below the 38.2% Fibo level but price has since recovered in the last week.
Typically price will either trend and break through various Fibonacci levels, or it will range in between 2 Fibonacci levels as it searches for direction. When price hugs a level for a considerable time you expect to see a breakout. We expect to see a shift in this pattern that will cause price to break free of the 38.2% Fibonacci level at 1.6422.
EUR/USD:
The EUR has been holding support at a level equal to its 50 day MA since April 30th. The EUR is now in range to test that level of support. Here is what we are looking for as confirmation of a real move lower.
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We want to see at least a whole candle including its wicks fall between the 50 day and 100 day MA. Additionally, the last lower low we had was at the 1.45 handle. If we break that level we would increase the short position.
If the short entry presents itself we would take PNL at the 1.4225 handle and reevaluate the markets and our positions at that time.
GoLearnForex Fundamental Analysis 2-11-2009
Global Equity Markets were net losers last week. In the U.S the DJIA slid nearly 250 points on Friday. Financials were hit the hardest, lead by concerns over CITI’s balance sheet and CIT’s inability to repay debt and probable bankruptcy filing. An additional behind the scenes market mover was Friday’s fiscal year end for many Mutual Funds.
The Dollar finished the week gaining on 8 of the G-10 currencies with Kiwi the big loser, down 3.96% for the week. Gold finished the week up less than 1% while silver dropped by 4.56%. Oil closed the week at $77 a barrel, roughly $4 off its high.
There are a number of important economic data releases due out this week. 4 major Central Bank will meet this week; the FED, RBA, BOE, and ECB. Only the RBA is expected to raise rates. All eyes will be watching the accompanying statements of Central Bankers. For Monday, ISM Manufacturing numbers in the U.S are set to print. The market is anticipating a slightly higher read for October at 53 versus 52.6 in September.
Upcoming Forex Events for November 2, 2009
CHF SVME PMI Forecast 55.10 Previous 54.30
EUR Manufacturing PMI Forecast 50.70 Previous 50.70
USD ISM Manufacturing Index Forecast 53.00 Previous 52.60
AUD Interest Rate Decision Forecast 3.50% Previous 3.25%
Analysis by http://www.golearnforex.net
Tags: daily analysis, daily fundamental analysis, daily technical analysis, forex analysis
Posted by
BettyBoop on November 2, 2009 |
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In this article we will discuss about what is Forex trading strategy? Forex is a great currency exchange market. Strategy is a skill used to make a plan for the achievement of goal. Therefore, Forex strategy is a graph of actions to achieve goal in foreign trading market. Plans are needed as great risks and tricks are involved in Forex trading market. AS Foreign exchange market is full of currencies so there traders purchase as well as sell currencies to gain huge profits. This business of currencies needs much patience and even money. It may take several years to become a winning trader in the trading market so there must be a Forex trading strategy to become a winning trader.
There are various kinds of traders. They may be short-term, long-term and medium term. Short term traders are named as scalper. Generally many Forex traders prefer to use medium term strategy that needs less investment.
The Forex strategies must be basic, advance and complex. A basic Forex trading strategy assists newbie to do trading business successfully. In basic strategies, some rules are defined for newbie so that they come to know how to trade. Simple Forex trading strategies are not designed for experienced traders; they are especially designed for skilled newbie. Simple Forex trading strategies define the techniques of Forex trading business. Other trading strategies such as advance and complex guide different Forex traders in their trading business.
Before start trading business, one needs to first practice with trading software. These trading software are helpful for the newbie and given them rough idea about trading market and even about trading business. It is also best for newbie to enhance their trading skills by “Mini Forex trading”. Forex traders must make use of Forex trading strategy for making wise investment decisions. These trading strategies educate many Forex traders and as a result they get big profits in trading business.
Now let us have a look at different types of Forex trading strategies. There is still no golden rule for a trading strategy to be 100% correct all the time. Hard work is needed along with best Forex trading strategy. To survive in the trading market, one requires long-term investors, who have huge economy as well as banks. Forex strategies include two components that are technical analysis and fundamental analysis. Technical analysis is based on analysis of Forex charts. It will be more helpful if traders make an analysis of the boom as well as depression region of the trading market. In order to do analysis of movement of market, mathematical formulas are used. The economics of number of countries are analyzed in fundamental analyses. Both these types of trading strategies are very necessary to make profitable trades.
Tags: Forex Trading, fx trade, Trading Forex
Posted by
NigelGee on November 2, 2009 |
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Forex market is identified as one of the leading platforms of exchange market today. The number of people joining Forex trading is increasing continuously. Because of its nature of offering profits instantly, it is gaining wide attention from traders. However, to make instant profits one should also be familiar with the right moves. It is a known fact that Forex market is awake and works on a 24/7 schedule. That is the reason behind the constant rise in the volume of amount being invested in this particular trading.
One of the advantages of trading online is that it frees you from worrying about commission fees. Forex trading being global, one is not bound by unwanted restrictions and can enjoy the benefits of profit opportunities regardless of the market conditions. No matter how big or how small the capital is, you will always be welcomed to trade online. As global Forex trading offers handful of opportunities for every trader, capital is never a constraint. Not only big investors but also people who want to play it safe by investing smaller capital can also benefit from Forex trade.
Trading on Forex platform is gaining extreme popularity among full-time traders as well as part-timers. As trading is considered a potential money-making machine, everybody wants to give it a shot. However, it is important that both experienced traders as well as beginners do their homework and come prepared with a thorough analysis of markets. In fact, one can opt for a Forex e-learning course that provides them with some basic understanding of the tools which can assist them in trading.
You will definitely want to know a few simple points that can help you know the fundamentals of trading. Here are a few:
Analysis is very important for any trader before entering the market. One should have the minimum understanding of where one is investing the money and what the logic is behind one’s potential investment.
Brush up your knowledge on currencies. If you understand the pasts and potential values of the currencies correctly, you will leave the other traders way behind you.
Always be cautious of the moves you are making with your potential investment. You will actually start learning only when you get into the process. So take cautious steps by keeping track of current market flows, possible exchanges etc.
As regular subjects have, market of Forex also has its own terminology. Make efforts to understand the Forex language as that will be very useful for a trader while trading.
As a trader you should always observe the market movements carefully. This will help you to make the most favorable decisions and you will be able to play confidently.
Tags: Forex Trading, fx trade, Trading Forex
