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It is undoubtedly the most profit reaping business which is done online. This business is the best nowadays. The business is none other than currency trading. This business helps the traders to make a lot of money in a very simple way. This business does not require the trader to work too much. The right combination of knowledge and information of the market with the ability to make decisions is the success formula for the successful forex traders. This has been the formula which has been very effective to people who have been successful in online trading.
There are also various other forex traders who reap a good profit with the help of other techniques. The other techniques that have been proved to be successful are the forex software. The main advantage of having these software is that, these software have the ability to produce data that is very accurate and which helps in decision making. These data are very vital in making decision and thereby profiting.
There are various software that is available nowadays. The trader has to choose based on the need for him. The various software are discussed below.
1. Automated forex trading system software
This forex software is a substitute for the trader. It has the capacity to do almost all the work of the trader. The trading strategies have already been programmed and hence it will deploy suitable strategy at suitable periods. This helps the trader to relax and just count the profit. But finding the correct forex system is a tricky job. The system can either make you rich and the system if chosen wrong can make you lose all the investment.
2. Trading signals
The trading signals are another very important tool which helps the traders to make decision based on the market. The signals are used to indicate trends in the market. This software merely provides data about the varying trends like the points in the market and trade happenings. The decision of paying heed to the signals is left to the trader. The software is just available to provide tips to the user and hence it cannot be considered as a dynamic program.
3. Training course
The forex training course will help you understand whether you are ready for doing trade right away or whether you still need more practice in trading. When one learns the art of trading with foreign currencies at the right time then the person can be assured of gaining on a regular basis. Although the amount may not be huge as the professionals and the experienced make by investing, the profit will be regular.
4. Trading platform
The participation in a trade without the trading platform is not possible. These provide the traders with very vital information. These information cannot be neglected. Hence it is a very important tool for traders
Making a trade with the help of money is used to be a source of the dominion of big financial banks as well as of large financial institutions. But now the scenario has changed completely. In today’s genera, this process of trading is easy to be done by even the normal person through the help of foreign currency market of FOREX. People can now make a purchase and can sell out different types of currency, needing nothing more than a basic type of computer and a network connection, which can help you stay, connected with the outer world. Any person who possesses a computer with an internet connection is able to make a trade in this big FOREX market. Nothing more than this is required. This is actually believed to be a type of investment made in money rather than stocks. This has proved to be a source of solid investment because there cannot be any other improved or enhanced type of trading indicator of the economic status of a country than their money. It is really very possible to make a prediction that when the currency of a particular country is on the verge of increasing or decreasing in its value just by having a look at their overall economic surroundings.
FOREX trading which deals with foreign currency generally make a trade in the form of pairs. It actually means that currencies are always traded in the form of a specific pair. A person makes use of one specific type of currency in order to buy another one. At that time when the monetary value of that specific currency which they bought goes in the upward direction, or the currency they purchased it with goes in the downward direction, then at that specific point of time, they can then exchange these currencies back for the sake of a profit. By dealing with quite a lot of these trades in a single day, a person has the power to make quite a large amount of money from really very small changes in the worth of the currency. The best part about this is that there is no pressure on a trader in order to purchase or sell the particular pair of currency of their own nation. It all depends on a trader, that which particular he wants to buy. If the economy of their own country is really very unstable, they have a chance to invest in the economies of other nations. It means that at those unstable times, they can make a purchase of different type of currency.
The FOREX market is the only market in the world that opens for 24 hours in a day, and works for 5 days in a week; it can be operated from any part of the world at any point of time in a day.
USD Dollar (USD)
The Dollar gained versus 15 of the 16 majors as Industrial Production rose by 0.8% versus 0.6% expected signaling U.S economy is expanding. The FOMC is still expected to keep the Interest Rate today at 0.25% but more economists expect a rate increase to 0.5% until June 2010. PPI came out stronger with 1.8% versus 0.8% expected and TIC Long Term Purchases came out weaker with 20.7B versus 38.3B prior. NASDAQ and Dow Jones declined by -0.50% and -0.47% respectively as wholesale inflation raised concerns the Fed will be forced to raise interest rates. Crude gained by 0.17% closing at 70.81$ a barrel ending a 9 day declining streak. Gold (XAU) gained by 0.29% closing at 1125.70$ an ounce. Today, Building Permits are expected with 0.58M versus 0.55M prior. CPI is expected with 0.4% versus 0.3% prior and Core CPI is expected with 0.1% versus 0.2% prior. Investors are waiting for the FOMC Interest Rate decision that is expected to remain at 0.25%.
EURO (EUR)
The Euro fell versus the Dollar and the Pound after weaker French CPI results, which triggered the Euro\’s decline. German ZEW Economic Sentiment came out 50.4 slightly better than 50.1 expected but ZEW Economic Sentiment came out weaker with 48 versus 50.9 expected. More countries in the Euro zone show signs the recession is still alive. Greece is struggling with its debt and Austria nationalized Hypo Bank. Overall, EUR/USD traded with a low of 1.4503 and a high of 1.4659. Today, German and French Manufacturing PMI are expected slightly stronger. CPI and Core CPI are expected unchanged with 0.6% and 1.2% accordingly.
EUR/USD – Last: 1.4535
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Resistance
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1.4575
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1.4625
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1.4685
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Support
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1.4500
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1.4445
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1.4410
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British Pound (GBP)
The Pound weakened versus the Dollar but gained versus the Euro after CPI came out 1.9% versus 1.8% expected. The CPI figures show inflation is advancing and the U.K won\’t be able to keep interest rates at their record lows. Overall, GBP/USD traded with a low of 1.6205 and a high of 1.6319. Today, Claimant Count Change is expected with 13.9K versus 12.9K and MPC Member Miles will speak in London.
GBP/USD – Last: 1.6275
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Resistance
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1.6315
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1.6350
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1.6380
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Support
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1.6210
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1.6160
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1.6105
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Japanese Yen (JPY)
The Yen dropped versus the Dollar and the Euro as a near US interest rate increase seems likely in the upcoming year. Overall, USD/JPY traded with a low of 88.61 and a high of 89.95 and EUR/JPY traded with a low of 129.54 and a high of 130.73. No economic data expected today in Japan.
USD/JPY-Last: 89.65
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Resistance
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89.95
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90.40
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90.75
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Support
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89.30
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88.75
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88.35
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Canadian Dollar (CAD)
The Canadian Dollar followed the trend and fell against the Dollar but gained versus most other majors as Crude prices rose slightly ending its 9 day decline. Leading Index came out better with 1.3% versus 0.6% and Labor Productivity came out weaker with -0.2% versus -0.4% expected. Overall, USD/CAD traded with a low of 1.0552 and a high of 1.0611. Today, Manufacturing Sales is expected with 1% versus 1.4% prior.
USD/CAD – Last: 1.0615
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Resistance
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1.0670
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1.0700
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1.0750
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Support
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1.0580
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1.0550
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1.0515
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Research by http://www.ufxbank.com
NZD Beginning to Falter by GoLearn Forex
NZD/USD:
The New Zealand Dollar is starting to falter and like most of its G-10 counterparts it is holding at pivotal levels against the Greenback. One slip either way may send the currency tumbling or ready to resume its advance on the Dollar. We have mentioned the Kiwi in the past as we feel it may yield the biggest percentage loss when the Dollar does finally rally.
In the graph below we see the formation of a downward sloping Triangle beginning to emerge. The Kiwi has been riding the 50 day SMA as support on its path to .7600. You can observe that NZD peaked in late October but after 3 attempts it has failed to break the October high.
Short term support has been holding near .7100 represented by the bottom leg of the triangle. As the hypotenuse converges on near term support the more likely it is that a breakout will occur in the direction of the slope. We have also diagrammed a pattern we use often to identify trend and that is a step pattern whereby there are lower high’s and lower lows (or vice versa as the case maybe). Typically we like to see more obvious lower lows than what the Kiwi has shown us thus far.
The NZD is currently sitting below its 50 day MA, which we mentioned prior, represented support for the NZD’s move over the last 9 months. During the Dollar’s rally last week the Kiwi was able to bounce off of the 100 day MA but was not able to bounce back above the 50 SMA. As price action moves into the wedge of the triangle it may force price below the 100 SMA.
For good measure we added a Fibonacci Retrace starting back in March when the Kiwi dipped below .50 running through its most recent high in October when the NZD struck .7635. This data range produces the 23.6% Fibo Retrace at a handle of .6988. To trigger a strong short signal the Kiwi would need to take out the 100 day MA, near term support (the base leg of the triangle), and the Fibo 23.6% level, as we then target a .6500 handle. In order to resume a Long NZD position at this point the NZD would need to break north of the hypotenuse, the 50 day MA, and near term resistance at .7525.
Abu Dhabi Sending Financial Aid for Dubai World by GoLearn Forex
World Equity Markets gained some ground Monday amid assurances from Abu Dhabi that they would provide $10 billion in immediate financial aid to ensure Dubai World meets its $4.1 billion debt obligation due yesterday. The DJIA closed a shade above 10,500 after picking up 29.55 points.
The Greenback gave up a little ground yesterday as the DXY was down marginally to 75.352. Gold advanced slightly to 1,126.70 as the dollar showed some weakness. Oil was unchanged as it continued to hold below $70 a barrel.
In the U.K CPI data is set to print today. The Euro-zone’s Current Sentiment/Survey will publish today. In the U.S a number of economic releases are slated for today; Crude Oil Inventories, Gasoline Inventories, Total Net TIC Flows, Empire Manufacturing Index, and lastly PPI figures will print. In light of the Dollar’s recent rally expect that traders will be watching these numbers very carefully ahead of tomorrow’s FOMC rate decision.
Upcoming Forex Events for December 15, 2009
EUR German ZEW Economic Sentiment Forecast 50.20 Previous 51.10
CAD Leading Indicators (MoM) Forecast 0.60% Previous 0.70%
USD TIC Net Long-Term Transactions Forecast 43.00B Previous 40.70B
AUD GDP (QoQ) Forecast 0.40% Previous 0.60%
Analysis by http://www.golearnforex.net
USD Dollar (USD)
The Dollar weakened slightly versus the majors as the Dollar rally took a relief. NASDAQ and Dow Jones gained by 0.99% and 0.28% respectively as Dubai\’s bailout calmed investor fears. Crude weakened for the 9th straight day lowering by -0.43% closing at 69.57$ a barrel. Gold (XAU) gained by 0.54% closing at 1123.30$ an ounce. Today, PPI is expected with 0.8% versus 0.3% prior. Industrial Production is expected with 0.6% versus 0.1% prior. TIC Long Term Purchases is expected with 38.3B versus 40.7B prior.
EURO (EUR)
The Euro gained slightly versus the Dollar as Dubai World\’s bailout eased banks concerns of major write downs. Industrial Production came out as expected with -0.6%. Overall, EUR/USD traded with a low of 1.4607 and with a high of 1.4685. Today, German ZEW Economic Sentiment is expected weaker with 50.1 versus 51.1 prior.
EUR/USD – Last: 1.4655
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Resistance
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1.4685
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1.4775
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1.4825
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Support
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1.4585
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1.4535
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1.4470
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British Pound (GBP)
The Pound gained slightly versus the Dollar but is still unable to break above or below the 1.6350 and 1.62 range. RICS House Price Balance came out weaker with 35% versus 39% forecast. Overall, GBP/USD traded with a low of 1.6188 and a high of 1.6324. Today, CPI is expected with 1.8% versus 1.5% prior.
GBP/USD – Last: 1.6300
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Resistance
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1.6340
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1.6380
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1.6425
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Support
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1.6250
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1.6190
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1.6150
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Japanese Yen (JPY)
The Yen gained versus the Dollar and other majors after Tanken Manufacturing Index came out stronger than expected. The Yen is set to replace the Dollar in the Carry Trading as borrowing costs in Japan became almost as cheap as U.S loans. Overall, USD/JPY traded with a low of 88.32 and a high of 89.29 and EUR/JPY traded with a low of 129.18 and a high of 130.64. Today, Tertiary Industry Activity is expected with 0.5% versus -0.5% prior.
USD/JPY-Last: 88.75
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Resistance
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89.00
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89.25
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89.85
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Support
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88.35
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88.00
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87.40
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Canadian Dollar (CAD)
The Canadian Dollar remained unchanged versus the Dollar as no major news was released and Crude prices were merely changed. Overall, USD/CAD traded with a low of 1.0484 and a high of 1.0623. Today, Leading Index is expected with 0.6% versus 0.7% prior and Labor Productivity is expected with -0.4% versus 0.0% prior.
USD/CAD – Last: 1.0580
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Resistance
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1.0635
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1.0670
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1.0700
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Support
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1.0550
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1.0515
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1.0480
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Research by http://www.ufxbank.com
One of the methods of trading that is growing at a really fast pace in the forex market in this modernized world is termed as scalping in the forex market. This type of trading is very fast and produces relatively quick results. The trading is performed for small periods of time and not like the traditional forex trading. The investor gets an income even when the market seems to see a small fluctuation in the exchange price of the currency.
The main feature of the scalping technique in the forex trading is the duration in which results are produced. The duration is very small and hence the traders seem to like this way of trading more. The ability of the market to produce profit for the investor in a very short amount of time is also another feature that attracts people to this kind of trading. the other feature in this trading is that it minimizes the movement in the market which brings down the variation in the prices of buying commodities and selling commodities fairly down.
There are also various other methods of trading that is popular in the forex market. The analysis of technical aspects and fundamental aspect is a type of analysis trading that is dependent on the trends that are available in the market. This method encourages the traders to analyze the recent and the present trends and then work up a strategy in order to invest and reap profits. Although this methodology helps the traders in many ways, it does not provide quick results as scalping does. Traders who are more bent over using the scalping system are always on the lookout for the smallest of variations or fluctuations that happen in the currency exchange price in the market. This helps the traders to get quick income and the results are always favorable for the traders who are quick.
The speed in which the two trading are done plays a very vital role in the involvement of the traders in either one of them. The traders tend to use the scalping system as the loss that incurs to a user is very much known immediately whereas in the traditional trading technique, the trader is always not sure whether he is going to win or not till the end of the day. The trader is always waiting for that one heavy profit that could happen to him. It may or may not happen in the course of the day.
The speed of scalping can be better understood by the sentence that follows. When a trader is scalping, the trader resells the currency that he is holding within a short span of minutes in order to get a profit. This shows the intensity and the speed of scalping.
In order to understand forex options, we need to first understand as to what an option is first. An option can be defined as the contract which gives the holder of the contract the right to sell or buy currency without obligating the investor to buy or sell at a given point of time at a particular value of the currency.
Currencies, stocks, commodities or indices, any of these can be defined as underlying security. It can be understood as the item which is going to be traded. The security is bought or sold at this price. This price is often referred to as strike price in currency option trading.
The option strategies are categorized into 2. They are understood as call and put.
The owner is provided with the choice of buying an underlying asset at a given frame of time at the strike price available at that time frame.
The buyer tends to make a call option for the underlying asset by assuming that the price of the underlying asset will rise in a period of time. If what the buyer has assumed becomes a reality then the buyer will be entitled to buy the underlying asset at the strike price which is lesser than the current price by the option or in simple words, the contract. This means a good profit for the buyer as the buying price is much lesser than the market price which is relatively higher. The buyer earns a profit from the difference in value between the strike price and current market price.
The buyer takes the put option when he feels that the underlying asset will lose its value in the market and the price will come down and go below the strike price. The owner of the underlying asset can sell his asset at the strike price which will be much higher than the current market price in case the above scenario meets the market. This allows the owner to buy assets at rates much lesser than that of the market price. The owner makes a profit from the difference in the price tags.
The number of investors who favor forex options trading is high because it offers several benefits. This prompts the user to favor this over other trading.
The investor is certain about the amount of money he may lose if at all he loses. The investor is entitled to make a good profit by investing a small amount and entering the deal. The investor will invest only what he does not mind losing in the trade and hence the amount he may lose is known from the offset.
The decision to trade is made when the investor buys the option, he can not back out of the deal after that. The market behavior cannot be predicted and hence the investor has to consider options that would bring him profit suitably.
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
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.
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
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