Posted by
BettyBoop on December 8, 2009 |
No comments
What If the Dollar Takes Off? By GoLearn Forex
NZD/USD:
We are not suggesting the Dollar bulls are running wild, however, every rally in hindsight has a defining moment. Every trader on the street is aware that when the Dollar bulls get set free they are going to come charging. Even if you are a skeptic to the end just the mere massive unwinding of the carry trade would rocket the Greenback.
Our pick would be the NZD and here 3 reasons why:
Performance – Going back to March 9th, 2009 through December 7th, 2009 the top performing G-10 currency (on a percentage basis) against the Greenback has been the Kiwi. It is up 47.24% which is quite shocking given the New Zealand economy is not among the largest of the G-10. To put some perspective on it the EUR is only up 19.59% and the GBP 20.57%
INSERT CHART A
Technical – There are 2 obvious technical reasons that stand out to us. A) A pattern we look for are lower lows and lower highs and vice versa. In the chart below we have depicted the initial emergence of this pattern. B) The Kiwi is already trading below its 50 day MA and on the verge of taking out its 100 day MA, a more significant breakout level than the 50 day MA, which many other G-10 currencies have yet to crack.
INSERT CHART B
Commodities – The Kiwi benefits from rising commodity prices as it is a commodity currency. Commodity prices are quoted in USD so as the Dollar strengthens commodity prices cheapen. If commodity prices cheapen so will the NZD.
Combine these three factors and you may see significant price action on this pair. Of course if the Dollar rallies all currencies will be on their heels but as a trader you are looking for the best trade, and this may be it. We define the best trade as the one with the best risk to return ratio.
Market Flat on Monday by GoLearn Forex
Global Equity Markets were off slightly Monday. A combination of light volume and a lack of any real economic data releases left markets essentially flat as traders continue to be risk averse heading into year end. The Dollar had looked to continue its rally until Fed Reserve Chairman Ben Bernanke’s comments regarding U.S rates remaining low for an “extended period of time” and his seemingly unimpressed manner regarding unemployment put the rally on hold.
The Dollar held its gains from Friday as the DXY closed down only a couple points to 75.757. Gold finished modestly lower to 1,158.10 while Oil gave up a little over a 1.50 a barrel to finish the day at 73.93.
The CAD moved into positive territory as Building Permits jumped 18%. This once again reaffirmed that Canada is in the midst of substantive recovery. This news comes on the heels of the BOC Rate decision today. Mark Carney, Governor of the BOC, has already expressed his commitment to keep rates on hold at least through mid 2010. In Japan, GDP figures are set to print and in the U.K. Industrial Production number are due out. We expect a good amount of volatility in the market today given recent events and today’s prints.
Upcoming Forex Events for December 8, 2009
CAD Interest Rate Decision Forecast 0.25% Previous 0.25%
GBP NIESR GDP Estimate Previous -0.40% 
JPY GDP (QoQ) Forecast 0.90% Previous 1.20%
AUD Home Loans (MoM) Forecast -1.80% Previous 5.10%
Analysis by http://www.golearnforex.net
Tags: daily forex analysis, forex analysis
Posted by
BettyBoop on December 8, 2009 |
One comment
Understanding Forex trading charts correctly is a proven way of getting big profits. However, many traders do not make use of them rightly. In this article, we will discuss about key points to help traders in making great profits. Now let us have a look at these key points to do more profitable technical analysis with Forex trading charts. When you look at Forex charts, you will see there large trends, which can last for several months. Most large trends begin and continue from breakouts to new highs as well as lows on the Forex chart. You should go with these breaks that many traders do not.
They wait for the pullback and never come therefore, they left behind. You need to be patient when making use of Forex trading charts. You do not get rewarded for your attempts and how many times you have traded. There are many traders, who only trade for a month and still get triple digit profits. If you have a market trend that you want to hit, you need to check whether the price momentum is on your side or not. You should make use of momentum indicators, which show price acceleration in the direction you want to trade. There are two trading indicators that you can learn only in thirty minutes such as RSI and stochastic.
These two trading indicators will increase your success odds by turning odds on your side. Do not try to predict things and only trade the reality of price. When you are making use of Forex trading charts, you should use simple Forex trading method. Simple trading method tends to be vigorous and have some elements to break as compared to complicated ones. Forex trading charts provide you the price reality and you are able to spot areas of over valuation and under valuation.
You are also able to ride market trends, however you will see big price spikes and history will tell you that they do not last long and taking trades divergent to the majority is very gainful. Charting is not a science. It is an art that you need to practice. The captain of a ship also makes use of charts to navigate securely. He knows very well that using it incorrectly will drown them. It is similar situation in Forex trading also. The Good news is that they are able to learn Forex charting only in two weeks and pilling up great profits in thirty minutes a day spotting high odds trades and enjoying huge gains. Another good thing is that Forex trading and doing technical analysis is a learned skill. You can get mastery in these skills with little practice.
Tags: forex charts, Forex Trading, fx charts, fx trade
Posted by
NigelGee on December 8, 2009 |
No comments
Every trader wants to have a perfect Forex Trading System. But the question is what makes a forex trading system perfect. There are two ways in which you can find the best trading system. You can put a forex trading system under a test for months using a demo account. Or else, just go out and take risks in the market without verifying the trading system. But there is a better way to find the best forex trading system. This article will tell you about it.
There are number of systems existing in the forex market and also there is loads of information. Traders get confused about what to do. There are indicators, ebooks on various strategies and automated software. In order to select the best, you need to check for 3 important things in every strategy and system.
The first thing to check is whether a strategy or a system follows a trend or not. Though, there are other ways to make money in the forex market but it is the simplest one and suggested for beginners. It will not take much of your time and consuming just about 15-20 minutes in a day, you can make a trade. You don’t have to waste your time in front of your computer to monitor the prices and you can utilize this time getting to know more about the market.
As a beginner, always look for a system which is simple and easy to understand. It is a well known fact that simple system is the most profitable ones. Lot of traders incorporate tons of indicators in their system which makes their system very complicated. As a beginner, incorporate 2-3 indicators in your system. This will help you to take a decision quickly and there will be less confusion.
Also, after using the indicators, the system has to be apparent and to the point. The system should be such that if the given conditions are satisfied then the trade should be made. The values of order amount, position size amount, when to place the stops should be well defined in the guidelines. In order to avoid the losses, it is advisable for you to prepare a system and have it in front of you before making any trade.
When we are talking about trade, how can be not talk about profits? Every trader should make this thing clear that they cannot have 100% success rate. There should be a place for a loss when you are planning a system. But you should not forget your ultimate aim, profit. After you have designed a system, you should put it under test for a period of few months and monitor the profits and the losses. Don’t get panic if you suffer a loss initially because ultimately you will profit in the end.
Tags: Forex Trading, forex trading system, fx system, fx trade
