Posted by
admin on August 10, 2010 |
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Daily Review 10/08/2010
Today’s Forex Trading review:
USD Dollar (USD) – The dollar gained across the board as a profit taking characterized the market before the FOMC statement today. The Stock Markets in U.S advanced with Dow Jones gaining 0.42% and the NASDAQ rising by 0.75%. Crude Oil advanced by 1% and closed at 81.5$ a barrel. Gold (XAU) seems to pause its rally and closed at 1201$ an ounce. Today, the Nonfarm Productivity is expected at 0.1% vs.2.8% previously. The Unit Labor Cost is expected 1.4% vs. -1.3% previously. After the FOMC Statement an Interest Rate Decision is expected unchanged at 0.25%.
EURO (EUR) – The Euro weakened against the dollar as it could not hold above the 1.33 zone and back to trade below the 1.32 zone as Dollar supported by the lack of fundamental data and some risk aversion before the FED’s decision today in U.S. The German Trade Balance came out 12.3B worse than expected 12.4B. Breaking below the support level of 1.3130 turns the momentum to negative for the pair. Overall, EUR/USD traded with a low of 1.3140 and with a high of 1.3307. Today, the German CPI is expected unchanged at 0.2%. The French Industrial Production is expected at 0.1% vs. 1.7% previously.
EUR/USD – Last: 1.3146
| Resistance |
1.3200 |
1.3240 |
1.3270 |
| Support |
1.3130 |
1.3100 |
1.3050 |
British Pound (GBP) – The Pound lost gains to the dollar after struggling with the 1.5950 area and fell back below the 1.5850 zone. The RICS House Price Balance came out -8% worse than expected 5%. Breaking below the support level of 1.5830 turns the momentum to negative for the pair. Overall, GBP/USD traded with a low of 1.5772 and with a high of 1.5995. Today, the Trade Balance is expected at -7.7B vs. -8.1B previously. The Nationwide Consumer Confidence is expected at 60 vs. 63 previously.
GBP/USD – Last: 1.5801
| Resistance |
1.5830 |
1.5870 |
1.5920 |
| Support |
1.5780 |
1.5750 |
1.5680 |
Japanese Yen (JPY) – The Dollar gained versus the Yen and moved upwards from the 85 low to the 86 zones according to the main trend of dollar’s strength across the board and in expectation for the Interest Rate Decision in Japan. Holding above the support level of 85.30 turns the momentum to positive for the pair. Overall, USD/JPY traded with a low of 85.24 and with a high of 86.04. Today, the Interest Rate Decision is expected unchanged at 0.1%.
USD/JPY-Last: 85.81
| Resistance |
86.00 |
86.30 |
86.70 |
| Support |
85.70 |
85.30 |
85.00 |
Canadian dollar (CAD) – Canada’s dollar slightly weakened versus the U.S Dollar as traded in a narrow range on speculations that the FED will take steps for providing more stimulus in the U.S. Breaching above the resistance level of 1.03 turns the momentum to positive for the pair. Overall, USD/CAD traded with a low of 1.0255 and with a high of 1.0298. Today, The Housing Starts are expected at 185K vs. 193K previously.
USD/CAD – Last: 1.0295
| Resistance |
1.0300 |
1.0340 |
1.0400 |
| Support |
1.0225 |
1.0180 |
|
Tags: daily forex analysis, forex day trading, forex market, Forex Online, forex review
Posted by
admin on August 5, 2010 |
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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
| Resistance |
1.3240 |
|
|
| Support |
1.3130 |
1.3090 |
1.3030 |
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
| Resistance |
1.5960 |
|
|
| Support |
1.5860 |
1.5820 |
1.5750 |
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
| Resistance |
86.00 |
86.5 |
86.80 |
| Support |
85.40 |
|
|
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
| Resistance |
1.02 |
1.0225 |
1.0270 |
| Support |
1.0165 |
|
|
Tags: forex analysis, forex broker, forex charts, forex day trading, forex market
There are a number of traders who try forex day trading to make quick money. However, it needs to be understood that you can never obtain the probabilities or odds in your favor while day trading. The surprising part is that it never works but is still very popular among people.
The main reason why day trading does not prove to be beneficial is that all small term instability is arbitrary and values tend to move in different directions in a day session. Supposing if you attempt at the support and resistance method it is most likely that you would lose since volatility or instability is arbitrary and these levels do not prove to be useful in any way. This thing is quite clear but most forex day traders are not able to see it.
There are huge numbers of traders trading around trillions of dollars each day and if you think you can calculate what this large group of traders are going to do in such a short period of time then you are highly mistaken.
Now the question arises as to why day trading is so popular?
Companies vending forex day trading systems befool and entice the traders to utilize these systems. They show them track records depicting remarkable profits and the traders get attracted towards the huge returns shown in the records. However, the truth is that none of the track records shown in these systems are correct; they are designed or replicated knowing the finishing or closing values.
Anyone can make millions if they were aware of the future prices of the currencies but forex trade does not work this way.
Whenever a company shows you a track record of astonishing returns you should notice the small print. There you will find repudiation such as this typical CFTC one
“CFTC rule 4.41 – Theoretical or replicated performance results encompass some confines. They are not like the real performance records; they do not show the real trading. Also, as the trades have not been implemented, the outcome might have under-or-over remunerated for the impact of some market issues, like the lack of liquidity. Replicated or fake programs are actually also subject to the truth that they are intended with the advantage of retrospection. These track records do not fail in retrospection but when it comes to the actual trade they do not perform and end up ruining the trader.
Day traders assume that in a day they can trade with reduced risk but the fact is that there is no point in including a petite risk to your stop in case you encompass a high prospect of it being smacked. Day traders come across a number of diminutive losses that merely wipe out their equity.
