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US Dollar Continues to Rise against Major Currencies

Daily Review 12/08/2010

Today’s Forex Trading review:

USD Dollar (USD) – The dollar made a big rally versus the majors as a slowdown of the global economic recovery pushed the investors to stay on a safe side favoring the greenback on other currencies. The Trade Balance came out -49.9B worse than expected -42.5B. The Federal Budget Balance came out -165B better than expected -167.6B. The Stock Markets in U.S tumbled with Dow Jones losing -2.49% and the NASDAQ fell by -3.01%. Crude Oil crushed by -3.5% closing at 77.3$ a barrel. Gold (XAU) is still fluctuating near the 1200$ zone closing at 1198$ an ounce. Today, the Initial Jobless Claims are expected at 465K vs. 479K previously. The Import Price Index is expected 0.4% vs. -1.3% previously.

EURO (EUR) – The Euro crushed versus the dollar as concerns about another slowdown in economy and rumors that ECB had to buy Irish debt papers fuelled the selling of the European currency. Breaking the support level of 1.2820 will extend the negative momentum for the pair. Overall, EUR/USD traded with a low of 1.2829 and with a high of 1.3185. Today, the ECB Monthly Report will come out and later the Industrial Production is expected at 0.7% vs. 1% previously.

EUR/USD – Last: 1.2882

British Pound (GBP) – The Pound slumped against the dollar on risk aversion of the investors as a main trend in the market. The Claimant Count Change came out -3.8k worse than expected -17.4k. Breaking the support level of 1.5620 will extend the negative momentum for the pair. Overall, GBP/USD traded with a low of 1.5612 and with a high of 1.5861. No economic data is expected today.

GBP/USD – Last: 1.5677

Japanese Yen (JPY) – The Yen gained across the board as concern the global economic recovery is moving a pace down spurred demand for the safest assets favoring the Japanese currency. The pair fell to fresh low level of 84.71 and since fluctuating near the 85 zone. Holding below the resistance level of 85.40 keeps the momentum negative for the pair. Overall, USD/JPY traded with a low of 84.71 and with a high of 85.45. No major economic data is expected today.

USD/JPY-Last: 85.12

Canadian dollar (CAD) – Canada’s dollar dropped to the lowest level against the dollar in almost 3 weeks as commodities and stocks tumbled on concern of recovery in the U.S. will be slower. The Trade Balance came out -1.1B worse than expected 0.4B. Holding above the support level of 1.04 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0302 and with a high of 1.0487. No economic data is expected today.

USD/CAD – Last: 1.0463

Tags: currency trading, daily forex analysis, Daily Forex Review, forex charts, forex market

Dollar trades mixed

Daily Review 05/08/2010

Today’s Forex Trading review:

USD Dollar (USD) – The Dollar traded mixed against the major currencies after the ADP Non-Farm Employment Change came out 42k better than expected 25k. The Stock Markets in US reacted positively to the data with Dow Jones gaining 0.41% and the NASDAQ appreciating by 0.88%. Crude Oil closed almost unchanged from yesterday at 82.42$ a barrel. Gold (XAU) touched once again the known level of 1200$ an ounce after 6 consecutive days of climbing and closed nearly below. Today, The Initial Jobless Claims are expected at 455k vs. 457k previously.

EURO (EUR) – The Euro weakened against the dollar after a better than expected US ADP data which supported the dollar. Retail Sales came out unchanged as expected at 0%. The momentum might turn to negative if the pair will break below the support level of 1.3130. Overall, EUR/USD traded with a low of 1.3130 and with a high of 1.3239. Today, the German Factory Orders are expected at 1.5% vs. -0.5% previously. The Interest Rate Decision is expected unchanged at 1%.

EUR/USD – Last: 1.3150

British Pound (GBP) – The Pound weakened against the dollar after it climbed 9 days consecutively as the Services PMI report showed that U.K. services growth slowed to the lowest in 13 months in July as it came out 53.1 worse than expected 54.5. The momentum might turn to negative if the pair will break below the support level of 1.5850. Overall, GBP/USD traded with a low of 1.5854 and with a high of 1.5962. Today, the Interest Rate Decision is expected unchanged at 0.5%.

GBP/USD – Last: 1.5880

Japanese Yen (JPY) – The dollar touched new fresh low against the yen at 85.3 levels but soon after jumped above the 86 levels. The momentum might turn to positive if the pair will not break below the support level of 85.30. Overall, USD/JPY traded with a low of 85.31 and with a high of 86.37. No economic data expected today.

USD/JPY-Last: 86.04

Canadian dollar (CAD) – The Canada’s dollar reached new fresh high since May vs. the American dollar as risk aversion among the investors is not attractive. High price of Crude Oil supports the Canada’s dollar strength. Breaking below the support level of 1.0130 might extend the negative trend of the pair. Overall, USD/CAD traded with a low of 1.0162 and with a high of 1.0270. Today, the Building Permits is expected at 0.6% vs. -10.8% previously.

USD/CAD – Last: 1.0171

Tags: forex analysis, forex broker, forex charts, forex day trading, forex market

Importance of understanding Forex charts

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