Posted by
BettyBoop on December 14, 2009 |
No comments
Euro – Headed for a Tailspin? By GoLearn Forex
EUR/USD:
The EUR is perilously close to falling into a tailspin. We have been stating for some time that a candle appearing below the 50 day Moving Average (MA) would generate a strong signal for a Short entry. As you can see in the Graph below that signal occurred last week, with the 50 day MA currently holding at 1.4880 while the EUR is trading at 1.46.
The EUR is now on the cusp of an even larger fall. It closed last Friday’s session at the 100 day MA an even more significant breach than the 50 day MA. Perhaps even more troublesome for the EUR is that it is just a hairsbreadth above 61.8% Fibonacci level at a handle of 1.4621.
INSERT CHART EUR
A close below the 61.8% Fibo level coupled with a close below the 100 day MA as they converge may equal real trouble for the EUR. The EUR has not been south of the 100 day MA since April 2009 which coincidently occurred when the 100 day MA and Fibo 23.6% level converged. The EUR proceeded to advance 14.6% from that point. We therefore target the 50% Fibo level with a handle of 1.4184 as the next support level should the EUR breach the 61.8% Fibo level.
USD/CHF:
The CHF is another currency holding at a very pivotal level. With Friday’s session closing just below the 100 day MA the CHF is trying to hold its ground against the Greenback. The Swiss Franc has been one of the benefactors of Gold’s jump in value. However, as the Dollar has rallied and Gold prices have begun to fall so has the CHF.
The Franc closed above its 50 day MA for the first time since August, representing only the 3rd such close since April of 2009. This coincided with it’s last close above the 100 day MA. The Franc has another issue to contend with and that is the 23.6% Fibonacci Retrace level created from the CHF low of 1.20 back in March of 2009.
INSERT CHART CHF
If the CHF closes above the 100 day MA and the 23.6% Fibonacci level at a handle of 1.0402 is breached then we would expect the CHF to test support at the 38.2% Fibo level or 1.0701.
Bona Fide Recovery Seems in Order by GoLearn Forex
Global Equity Markets closed higher as the prospect for a bona fide recovery now seems assured. The Markets were able to shake off credit fears and focus on continued positive economic data coming out of the U.S. On Wall Street the DJIA closed up 65.67 points to 10,471.50 on better than expected Advanced Retail Sales figures.
The Greenback continued it rally as it advanced on positive economic data, breaking the 9 month long “positive equities to poor dollar” correlation, for a second time in 1 week. The DXY touched 76.725 before retreating slightly to close at 76.573. Another positive session for the Greenback and it may take out the 100 day MA.
In the commodity space both Gold and Oil were down. Gold lost 15.60 to close Friday’s session at 1,115.40 while Oil closed just below $70 a barrel for the first time since September 29th. Gold has lost nearly 9.5% since its high on December 3rd and is just a few dollars away from closing below its 50 day Moving Average.
In the Euro-zone for Monday, Employment figures will be published on Tuesday. U.S. PPI numbers will print as well as the Empire Manufacturing data. In Australia, GDP numbers will hit the wire on Wednesday, as will Housing Starts and Building Permits in the U.S. However, investors will be tuned in on Wednesday to the FOMC rate decision. Although no change in rate is expected, traders are hoping for the accompanying statement to shed light on future rate hikes and economic policy as continued positive economic data continues to print.
Upcoming Forex Events for December 14, 2009-12-14
CHF PPI (MoM) Forecast 0.20% Previous -0.40%
EUR Industrial Production (MoM) Forecast -0.50% Previous 0.30%
CAD Capacity Utilization Rate Forecast 67.80% Previous 67.40%
AUD RBA Meeting Minutes
Analysis by http://www.golearnforex.net
Tags: daily foirex analysis, forex analysis
Posted by
BettyBoop on December 14, 2009 |
No comments
In this article, we will tell you about the ways in which Forex trading can b made simpler. There is a myth that Forex trading is very tough as almost 90% of the traders lose all the time but it is not so. Here are the ways which can be used to make your trading easier and profitable.
With the development of Forex Trading software, many traders believe that if they use such software then they will win all the time and without making any efforts. It would have been so good if this dream was true. But unfortunately, it is not. You have to work hard and expertise in all the skills required for trading in the market in order to make money from the market. You have to take all the responsibility. No one else will come and do this for you.
If you think that it will take lot of time to learn the skills then you are wrong. The skills can be learnt in very short period of time. Always remember, follow a simple system, it will always work. It is not bad to be smart and intelligent but the market doesn’t care about these qualities. If you are trading in the right way, you will always benefit from the market. And this is the only fact.
Many traders fail to follow their system and start panicking when they suffer a loss. You have to very discipline when you are trading in the forex market. This is not a tough thing to learn. Just approach the market with the right mindset and don’t panic at all. It is the guide to succeed in the forex market.
If you have the knowledge about the currency trading then you will have the confidence to trade in the market without any fear and this will help you to trade in a disciplined manner. As believed by many traders that you can make money without suffering any loss but it is not true. There is not a single system which is 100% loss proof. Every system suffers a loss one time or the other.
So, stop bothering about the losses, just try to keep your losses to minimum. Sooner or later, you will hit a winning patch and it will cover up all your losses and ultimately you will make some money. Most of the traders lose their cool and get frustrated when they suffer a loss. They start trading against the system and keep on losing. To avoid this situation, you need to have the right mindset. So the mantra behind success is the right mindset and to minimize the losses as much as you can.
If you are clear about the above points then you will realize why most of the traders end up losing all their investments. But the good news is that – now you know what to do and what not to do in order to succeed in the forex market.
Tags: Forex Trading, fx trade, fx traders, Trading Forex
Posted by
NigelGee on December 14, 2009 |
No comments
The first thing that springs up in ones mind when someone talks about investment is the risk factor that comes to mind in the forex market. You might be at the risk of losing a heavy amount when you are on the verge of trading off-exchange contracts in forex. The understanding of risks is important when you are about to take a decision to enter the forex market. The understanding of the risks involved in trading helps you to place yourself in a better position from which you can take better decisions that are wise and more productive.
The trading such as the off exchange foreign currency is an investment that is highly speculative. The participation of all is not advisable here as this kind of trade proves to bring heavy loss and is very risky. If the investor has funds that he does not mind losing, the investor can very much go ahead and invest in it as far as it does not affect his financial well being. It is better and an act of wisdom to stay away from such activity if you do not have the funds that can be invested and lost. The understanding of risks is the primary reason to be understood before entering forex trading
• The volatile nature of the forex market. The future cannot be foretold exactly. There might be changes in the foreign exchange rate and it might go against you.
• The savings that you have invested might be lost. The forex dealer demands a margin in order to help you to sell or buy an off exchange forex contract. If the deposit is lesser than the value of the contract for the underlying then the leverage tends to be high. The agreement that you enter with the dealer determines the amount of money that you may lose in the deal. You may lose the enter amount that you have deposited else even an amount greater than your deposit.
The other major mistake that is the main cause for bad money management is over trading. The trade cannot be defined to have a closing time, the investor keeps carrying on till he keeps getting profits. The investors do not set a goal regarding the amount of profit that would signal to stop trading. The setting and achievement of goals plays a major role in money management. The investor should have some pre defined goals and be certain that the goals are achieved before going to another position. The maintenance of multiple positions during the process of trading is very annoying and can bring about the downfall of the investor.
The presence of over confidence is the gravest mistake that one can commit during forex trading. This mistake occurs when one puts belief in the “inside information”. Being practical and realistic helps you to achieve better heights
Tags: Forex Trading, fx trade, Trading Forex
