Posted by
BettyBoop on November 9, 2009 |
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Daily Technical Analysis By GoLearnForex
USD/JPY:
The Dollar Yen has been relatively volatile as of late. On the chart below there are levels of support and resistance indicated by the bright green horizontal lines. We have now tested 89.90 twice on the close.
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Additionally, the 50 day MA is closing in on that level. If an entire candle sits above the 50 Day MA then we would expect price to move towards the next resistance level at 92.00. However, if the price closes below 89.90 then we would expect a further drop to the next level of support at 88.00.
Lastly, one additional chart to look at is the correlation between the DXY (which is an indexed weight of the dollar, based on a basket of currencies) versus the Yen. What you see since April is that as the DXY has depreciated the JPY has appreciated. If you have a negative dollar bias than you will want to go Long the Yen as we approach S&R.
INSERT CHART
USD/CAD
The Canadian Dollar is in a very vulnerable position at this juncture. Fundamentally, the CAD has come under pressure from its own Central Bank as well as recent poor economic data. It completely retraced its mover lower towards Dollar parity.
I looked at the CAD over a number of different tenors from a 4 hour to a Daily to a Weekly. On each of those charts there were technical indications that the CAD maybe in trouble. I will focus on the weekly chart, although I do not trade from a weekly but rather use it for confirmation of trends.
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Based on the chart above there are 3 points that get my attention even before we look at any additional oscillators or indicators or the like. 1) The red rectangular box shows levels congestion or S&R for the CAD. 2) The red lines that make up the ‘v’ shows a complete retrace of the previous move 3) In the square red box you have a “Hammer” shaped candle (although it more so resembles a mallet). A trader who purely uses candles would have closed out his Long CAD position after the formation of the Hammer on a weekly chart.
Looking at the daily chart the CAD is also closing in on the 50 day MA. It is very possible that on poorer than expected economic news from Canada or a firmed greenback that the CAD will touch 1.10 this week.
G-20 Decides Economic Stimulus Will Continue By GoLearnForex
Equity Futures are mostly negative tonight suggesting a slightly lower open. This weekend saw the board of governors from the G-20 assemble. Although a number of important topics were discussed there was agreement amongst the board that economic stimulus should not be removed until further signs of a steadied economy are present.
We closed out last week with a bang as U.S Unemployment printed worse than expected to 10.2%. This obviously concerns investors that if unemployment does not at least bottom it could derail the already fragile economic recovery.
There was a slightly quieter week this week on the data front. We will be watching the Canadian Housing Starts for October. Although we do not expect any surprises here, nonetheless the CAD is quite volatile these days.
Upcoming Forex Events for November 9, 2009
CAD Housing Starts Forecast 155.00K Previous 150.00K
JPY Bank Lending (YoY) Previous 1.60%
GBP RICS House Price Balance Forecast 29.00% Previous 22.00%
AUD NAB Business Confidence Previous 14.00
Analysis by http://www.golearnforex.net
Tags: daily forex analysis, forex analysis
Posted by
BettyBoop on November 9, 2009 |
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There has to be awareness between newcomers and people who wish to establish themselves in the Forex market. Forex Market structure states that the trading system itself to be operated creates complicity. Profit can be earned by following the trade structure. One should not be educated and should not bother about the complicated physiological issues.
Further, that no mathematics should be taken to determine the ratio reward ratio. Forex Trading psychology should also be taken into consideration to look for Forex mistakes. Most of us relate a trading mistake to the outcome (in terms of money) of any given trade. The truth is, a mistake has nothing to do with it, and mistakes are made when certain guidelines are not followed. When the rules you trade by are violated.
There is absolutely no correlation between the outcome of the trade and a mistake. The most catastrophic mistake even has a positive trade outcome, made money, but this could be the beginning of the end of the trader’s career. As we have already stated, mistakes must only be related to the violation of rules a trader trades by. All these mistakes were directly related to the signals given by a system, but the same is applied when getting out of a trade. There are also mistakes related to following a Forex trading plan. For example, risking more money on a given trade than the amount the trader should have risked and many more. Most mistakes can be avoided by first having a trading plan. A trading plan includes the system: the criteria we use to get in and out the market, the money management plan: how much we will risk on any given trade, and many other points. Secondly, and most important, we need to have the discipline to follow strictly our plan. We created our plan when no trade was placed on, thus no psychology barriers were up front. So, the only thing we are certain about is that if we follow our plan, the decision taken is on our best interests, and in the long run, these decisions will help us have better results. We don’t have to worry about isolated events, or trades that could had give us better results at first, but then they could have catastrophic results in our trading career.
Define the mistake, find out what caused the mistake, and try as hard as you can to effectively see the nature of that mistake. Finding the mistake nature will prevent you from making the same mistake again. More than often you will find the answer where you less expected. The Forex trade guide can be one option in order to clearly demarcate the benefits and the mistakes in the Forex Market.
Tags: Forex Trading, fx trade, Trading Forex
Posted by
NigelGee on November 9, 2009 |
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It goes without saying that is necessary that you know what your responsibility is at what time entering the Forex market. There are a number of options for those who desire to add to their knowledge about this market. Some of these options are difficult the systems that you will be using, tutorials, trading strategies and meaningful the terminology.
Most of the traders fail since they can’t take behind and are expressively not ready for the fact that losses are always going to happen. Even the best traders will misplace at some time in their trading vocation. But, instead of getting angry, aggravated and giving up they need to learn from these setbacks and then accept the losses and most highly, keep these losses small and under control.
Tags: Forex Trading, fx trade, fx traders, Trading Forex
