Posted by
BettyBoop on November 16, 2009 |
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EUR Struggles to Break 1.50 Handle by GoLearnForex
EUR/USD:
The EUR continues to struggle to break the 1.50 handle. Last week, the EUR on a daily chart, completed the formation of a double top just above resistance at 1.50 [shown in the red boxes in the chart below]. The 50 day SMA continues to hold support for the EUR at 1.4764. We have not had an entire candle appear below the 50 SMA since April, however, we have bounced off this MA support nearly 15 times since then.
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If an entire candle appears below the 50 SMA that would be a good indication to open a near term EUR short position. On the flip side if we breach R1 we would resume a long EUR position. You can also see the formation of an ascending triangle when using the 50 SMA as the slope and R1 as the top side. Although trading becomes thin towards year end and a a result the market can appear a little more volatile we anticipate the 50 SMA will move in a more parallel form to R1.
GBP/USD:
Last week the Pound broke top side resistance at 1.6750, striking 1.6843 before retracing and barley closing above R1. The Cable has been moving sideways since June bouncing off S&R with near predictability. As a trader you want to decipher when the current short term trend near S&R is fading. It not only allows one to time the market but it also can limit your losses. By setting Stops just north or south of S&R after a reversal appears to be forming a trader will limit their losses should the actual breakout occur.
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In order to time the reversal correctly we suggest using candle patterns in conjunction with at least an additional indicator such as an RSI or even a Stochastic oscillator which will highlight over bought/sold points. On the Graph above you can see the candle pattern referred to as a Hangman (red arrow on graph) which indicates a reversal. On the lower part of the graph you can see the RSI headed down from its near breach of 70. Combine that with price at its current R1 level and you have a nice short entry point. Remember you limit your risk by placing a stop loss just above your point of entry in case a breakout really occurs.
Dollar Ends Mixed Across G-10 Commodity Currencies by GoLearnForex
The Dollar ended the week mixed across the G-10 with commodity currencies advancing while the remaining G-10 currencies suffered minor losses. Global Equity Markets finished the week in positive territory although Futures are pointing towards a slightly lower open.
Gold finished the week ahead at 1,118.70 while Oil lost a little over $3 a barrel to close at 76.35. The Bond Market capped a stellar week with the U.S Government auctioning an additional $81 billion in notes and bonds.
In Japan, GDP figures are set to print Sunday night. Forecasters are looking for a slight increase in Annualized GDP figures. On the docket for tomorrow we have Retails Sales set to publish in the U.S. This may be a real market mover, as traders will use this as a barometer for the impact unemployment will have on the economy. Additionally, this will shape expectations for the popular Holiday season Forecasts.
Upcoming Forex Events for November 16, 2009
USD Core Retail Sales (MoM) Forecast 0.40% Previous 0.50%
USD Retail Sales (MoM) Forecast 1.00% Previous -1.50%
USD Fed Chairman Bernanke Speaks
GBP MPC Member Sentance Speaks
Analysis by http://www.golearnforex.net
Tags: daily forex analysis, forex analysis
Posted by
BettyBoop on November 16, 2009 |
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Many people wonder when they come to know that most of the Forex traders lose their money in the Forex market and only a few can gain profits. You also might be thinking of what the reasons are why most traders cannot make money and what strategies you should follow to earn money. In this article, we will discuss about a simple strategy following which, you can easily gain huge profits from the Forex market.
The strategy we are about to discuss has already been used by many successful Forex traders and has also proved its effectiveness. It is the choice of many professional Forex traders, though only a few novice traders have used it. The strategy is simple and effective and does not require you to have that much a deep understanding of the Forex market.
Now, let’s see what the Forex strategy is all about. In the Forex market, it has been found that most currency price trends tend to start by breaking to new market highs and continue to stay for a certain period of time. In order to make good use of this common trend, you need to buy and sell breakouts to new chart highs and lows. If you find that the price of a particular currency is in a bull trend, you need to trade it. You should always try to hold the currencies for big profits and should also base your strategy on trading breakouts.
One thing you should know that if you can buy the best breakouts, it would be easier for you to gain huge profits from the Forex market. You will also be able to get in on all the big trends and make money. Now, let’s see why many Forex traders do not use this strategy in spite of its being quite logical and successful in making money.
The main reason behind this is that most Forex traders think that they can easily predict the market highs or lows and thus make their calls at the right time. However, this is almost impossible in reality as trying to predict the highs and lows is simply hoping and guessing. Such activities can ruin your Forex trading career as you are most likely to lose your money in the Forex market.
The best breakouts in the Forex market include numerous tests before the break occurs. You need to have patience and be selective when you trade breakouts and should also look for areas the other traders and the news feels are important. It is better to look for at least 4 tests before you decide to trade a potential breakout. Indeed, breakout trading is one of the easiest ways for you to gain huge profits from the Forex market.
Tags: Forex Trading, fx trade, Trading Forex
Posted by
NigelGee on November 16, 2009 |
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A Forex online trading system lets traders to participate in the trade directly in trading currencies from any part of our world. Nowadays the trade in Forex trading armlet is considered as one of the biggest trading businesses in the world, with an average everyday turnover of $3.2 trillion value of currency exchange as a means making investment. In observing how a Forex trading online system assists you in making money, it is crucial to observe few key advantages of online Forex trading.
Now let us have a look at the advantages of online Forex trading. An online Forex trading system provides traders unparalleled suppleness. Unlike the stock trading markets, Forex trading markets are organized through advanced telecommunication devices and let traders to make trades for twenty-four hours a day and five day a week. This allows you to participate in different trading activities by sitting at your own home even during leisure hours after finishing your day work. This flexibility lets users to earn a lot without sacrificing their day job. In another words, we can say that if they are successful in Forex trading business. They are able to earn a dual paycheck.
Furthermore, many online Forex trading systems provide you a complete range of trading investment tools as well as resources that are required to get you started. Just by simply opening an online Forex account with your broker, you have given full access for an important data like analyst reports and workshops relating to Forex trading that you can attend.
Still in most of the cases, you are able to get access for an entire range of charting software to allow you to make use of technical analysis to guide you in taking next investment decision. Such technical abilities are vital to allow trader to tome their precise entry as well as exit the trading markets. These resources as well as tools are tremendously crucial where the Forex trading is concerned. Having access for such trading software lets traders to start earning money through their trades.
Many Forex trading systems provide people a demo account with which, they are able to make use of from time to time. These Forex accounts use paper credits while permitting you to trade in actual time in the Forex trading market. This is significant as you can practice whatever trading strategies you may have developed along the way before entering the trading markets with actual money.
You can select to enter the trading market only when you are confident of consistent success as well as gains. The ability to practice and sharpen your trading market strategies before entering the market will surely let users to have great potential to earn a lot. The advantages that are provided by a Forex trading systems are plenty.
Tags: Forex Trading, Trading Forex
