Posted by
admin on August 25, 2010 |
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Daily Review 25/08/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar rose against other major currencies after industry data showed that U.S. existing home sales fell to their lowest level in 15 years (3.83M vs. 4.68M forecast), causing to sell higher yielding assets . NASDAQ and Dow Jones weakened by 1.66% and 1.32% respectively , crude oil fell by 2.0% the lowest price in 11 weeks ,closing at 71.36$ a barrel, Gold (XAU) rose by 0.4% , closing at 1233.4$ an ounce. Today, Core Durable Goods Orders are expected to rise from -0.9% to 0.6%, New Home Sales are expected at 333K vs. 330K prior.
EURO (EUR)
The Euro fell heavily against the yen and closed almost unchanged versus the Dollar, touching a six-week low during the session as main indexes and commodities fell strongly, more than 1.5 percent, supported to buy safety currencies like the Yen and Dollar. The pair continuing to trade downwards, therefore the momentum is still strongly bearish and a short position is preferred. Overall, EUR/USD traded with a low of 1.2587 and with a high of 1.2719. Today, German Ifo Business Climate is expected to weak from 106.2 to 105.8.
EUR/USD – Last: 1.2656
| Resistance |
1.2730 |
1.2830 |
1.2920 |
| Support |
1.2590 |
|
|
British Pound (GBP)
The Pound fell against the Dollar after the London based Times reported that Bank of England policy maker Martin Weal said the U.K. faces a “real risk” of a second recession . The GBP/USD has broken the support level at 1.5480 and crossed down the 10 moving average on the daily graph, therefore a short position is preferred. Overall, GBP/USD traded with a low of 1.5372 and with a high of 1.5505. No economic data expected today.
GBP/USD – Last: 1.5430
| Resistance |
1.5475 |
1.5620 |
1.5700 |
| Support |
1.5370 |
|
|
Japanese Yen (JPY)
The Yen advanced to the strongest level since June 1995 against the Dollar as concern the global economy is slowing encouraged demand for safer assets. Trade Balance came out better than expected at 0.61T vs. 0.47T forecast. The momentum of the USD/JPY is strongly bearish, the next support on the daily chart is located at 83.50, therefore a short position is preferred. Overall, USD/JPY traded with a low of 83.59 and with a high of 85.15. No economic data expected today.
USD/JPY-Last: 84.38
| Resistance |
84.40 |
85.40 |
86.0 |
| Support |
83.60 |
|
|
Canadian Dollar (CAD)
The Canadian Dollar fell for a fourth straight day versus the Dollar, touching the lowest level in seven weeks, as investors soured on higher yielding assets and currencies. As long the USD/CAD above 1.0500 levels a long position is preferred, the next resistance on the daily chart is located at 1.0700, if the price cross this level the trend will continue to be bullish. Overall, USD/CAD traded with a low of 1.0536 and with a high of 1.0664. No major economic data expected today.
USD/CAD – Last: 1.0595
| Resistance |
1.0665 |
|
|
| Support |
1.0555 |
1.0445 |
1.0380 |
Tags: currency options, currency trading, daily forex analysis, Daily Forex Review, forex market
Posted by
admin on July 16, 2010 |
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Forex Trading: Limit order 16/07/2010. Sell GBP/CHF @ 1.5970 , SL @ 1.6145 , TP1 @ 1.5875 TP2 @ 1.5810 TP3 @ 1.5740
The pair has been trending downwards and has made a small retracement upwards.
We want to enter the main trend which is still downwards but first wait for a confirmation the trend continues.
The entrance point is located below the last bottom the pair has made on the 4 hour chart.
More aggressive traders could try and short the pair from its current location but they should be advised the retracement upwards might continue higher and a SL of above 1.6170 is recommended for such traders.
The RSI is near 50 in neutral territory.
SL is located above the last top the pair has made yesterday and above the 100 period moving average which is likely to act as a resistance for the pair.
TP’s are located slightly above the support levels the pair has.
All analysis is based on the 4 hours chart.
Current rate: 1.6075
Tags: currency options, currency trading, daily forex analysis, Daily Forex Review, Daily reviews, daily technical analysis, forex analysis, forex platform, forex review, Forex reviews, forex robots, forex software, forex strategy, forex systems, forex trading account, fx software, fx traders, Trading Forex, Trading online
Posted by
BettyBoop on October 13, 2009 |
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Forex option trading has been given a number of names like FX option, forex option, options trading and currency options. Being one of the most liquid markets of the world one thing is assured that there will frequent changing of hands. Forex option is a type of financial instrument whose value can be derived from the underlying asset and the asset is kept to protect or secure an amount for future transactions. The owner of such option is given the right to exchange a certain amount of money from one currency to another and the rate if fixed earlier and also the time is agreed upon earlier. However if the situation is not in favor of the owner he cannot push the transaction to avoid losses.
This type of trading is undertaken for two main reasons:
Firstly, the owner wants to increase his ROI and he can do this by setting the firm downside equivalent to the risk levels of the transactions.
Secondly, forex options are also used to guarantee profits on the underlying forex currency where again the level of risk is significantly reduced.
Nowadays the amount of online forex trading has received a huge boost and the startling thing to notice is that it is mainly being done by virgin traders and the only reason behind this is the potential to increase the ROI. The principle behind these huge returns is normally forex trading is considered as a risky business in fact the risk levels are so high that a large number of amounts are needed as security before any of these options can be carried out. So normally people do not trade with amounts reaching the levels of thousands or even millions for that matter.
When the internet had not been so popular there were only a selected number of retail forex brokers or professional traders or seasoned forex merchants who were interested in this type of trading. The transaction involving options can only be done through a large amount of money. Moreover due to the constraints of technology it was very hard to constantly keep a track of all the movements taking place in the market. But in the present day world with the quality of technology being so high an investor can continuously monitor all the real time updates of the movements of the forex market and information that is being uploaded on the World Wide Web and this has made option trading a relatively easy task then it was before.
Automated forex trading tools can be really handy for a new trader so has just come in the market he can trade in a virtual trading environment where no security money is involved.
Tags: currency options, forex option trading, Forex Trading, fx trade
