Daily Review 11/08/2010

Today’s Forex Trading review:

USD Dollar (USD) – The Dollar gained against most of the majors before the FOMC statement and trimmed part of the profits after the Interest Rate Decision which came out unchanged at 0.25% as expected. The FED said that the pace of economic recovery is slower than expected. The Stock Markets in U.S finished negative with Dow Jones losing -0.51% and the NASDAQ tumbled by -1.24%. Crude Oil fell by -1.5% back to 80.2$ a barrel. Gold (XAU) closed with small gain after falling to 1190$ zone but recovered and closed at 1203$ an ounce. Today, the Trade Balance is expected at -42.5B vs. -42.3B previously. The Federal Budget Balance (Treasury Budget) is expected at -167.6B vs. -68.4B previously.

EURO (EUR) – The Euro weakened against the dollar breaking the 1.31 zone but jumped back to 1.32 zones after the FED in U.S announced a continuation of measures to stop the economic slowdown. As the Asian markets opened it dragged back the Euro to 1.31 areas. The German CPI came out 0.3% better than expected 0.25%. Trading below the support level of 1.3130 keeps the momentum negative for the pair. Overall, EUR/USD traded with a low of 1.3073 and with a high of 1.3232. No economic data is expected today.

EUR/USD – Last: 1.3122

British Pound (GBP) – The Pound lost gains to the dollar reaching the 1.57 zone but jumped back to 1.59 zones after the FED interest rate decision. As the Asian markets opened it dragged back the Sterling to 1.58 areas. The Trade Balance came out -7.4B better than expected -7.7B. The Nationwide Consumer Confidence came out 56 worse than expected 60. Trading below the support level of 1.5830 keeps the momentum negative for the pair. Overall, GBP/USD traded with a low of 1.5708 and with a high of 1.5906. Today, the Claimant Count Change is expected at -17.4k vs. -20.8k previously and later BOE Gov King will speak regarding the Inflation Report.

GBP/USD – Last: 1.5811

Japanese Yen (JPY) – The Yen gained versus the dollar and back to 85 zones. The global recovery slowing boosted demand for the safety of Japan’s currency. The Interest Rate Decision came out as expected at 0.1%. Breaking the support level of 85.30 turns the momentum to negative for the pair. Overall, USD/JPY traded with a low of 85.16 and with a high of 86.24. Today, Monthly Report of Recent Economic and Financial Developments will be updated.

USD/JPY-Last: 85.33

Canadian dollar (CAD) – The US Dollar gained versus the Canada’s dollar as the Federal Reserve said it will take new measures to economic growth in the U.S. The Housing Starts came out 189k better than expected 185k. Holding above the support level of 1.03 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0265 and with a high of 1.0387. Today, the Trade Balance is expected 0.4B vs. -0.5B previously.

USD/CAD – Last: 1.0319

Daily Forex Trading Review 03/08/2010

USD Dollar (USD) – The Dollar weakened against most major currencies as risk appetite was boosted by better than expected U.S. data on manufacturing activity which came out at 55.5 vs. 54.2 forecasts, succeeded to support risky assets instead of the dollar. Federal Reserve Chairman Ben Bernanke said rising wages would probably spur household spending in the next few quarters, even as weak job gains dragged down consumer confidence. NASDAQ and Dow Jones rose by 1.80% and 1.99% respectively, crude oil jumped by 3.0% closing at 81.34$ a barrel, Gold (XAU) strengthened by 0.1% closing at 1185.4$ an ounce. Today, Pending Home Sales are expected to become positive from -30.0% to 0.5%.

EURO (EUR) – The Euro strengthened to a three-month high versus the Dollar as a report showed U.S. manufacturing expanded for a 12th straight month. The pair has succeeded to break the resistance at 1.3110, therefore the momentum is strongly bullish, the next resistance is located at 1.3200 level. Overall, EUR/USD traded with a low of 1.3055 and with a high of 1.3195.

EUR/USD – Last: 1.3165

British Pound (GBP) – The Pound rose to the highest level in almost six months against the Dollar as a report showed U.K. manufacturing expanded for a 10th straight month in July, a sign the U.K. economy is recovering faster than some economists had forecast. As long the pair is trading above the resistance at 1.5660 on the daily chart the momentum is clearly bullish, the next support on the one hour chart is 1.5665. Overall, GBP/USD traded with a low of 1.5700 and with a high of 1.5907.

GBP/USD – Last: 1.5876

Japanese Yen (JPY) –The Yen fell against most of his major as signs the global recovery is gaining momentum fueled investor appetite for riskier assets. The main resistance of the USD/JPY on the one hour chart is 87.00 level, as long it’s trading below this level a short position is preferred and the momentum is clearly bearish, the next support is located at 85.90, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 86.32 and with a high of 86.88.

USD/JPY-Last: 86.37

Canadian dollar (CAD) – The Canadian Dollar strengthened against the Dollar, reached the strongest level since June 22, as futures on crude oil the nation’s largest export climbed 3.2 percent to $81.44 a barrel, succeeded to push the Canadian as well. As long the USD/CAD below 1.0400 levels the momentum is bearish, the next support on the daily chart is located at 1.0140. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0290.

USD/CAD – Last: 1.0241

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

The advent of software and technology has made things really easy for Forex traders as well. Now, the market offers you softwares that pinpoint market turns in Forex. Although there are very few good and affordable products that can do this work perfectly, the buyer needs to make an intelligent choice.

Usually the software projecting Forex market trends costs $97-$147 in markets. Some investors can of course come up with some less expensive ones, however their effectiveness and accuracy is in doubt. A Forex trader should have ample knowledge of the twists and turns of the platform. He has to spend a good amount of time in the Forex market and gain the idea first and then depend on the software indicating market trends.

The software projecting Forex market trends are most of the time accurate but if the Forex trader does not know the product well or its reputations, it is not a wise idea to go for a huge expense. For the first time, it is better to go with an inexpensive piece of application or system and the trader’s own intellect. However, when he is well aware of the functioning, he can purchase an expensive one. The sophisticated software projecting Forex market trends will also be difficult for an amateur to understand. Once they understand the whole process it will be easier to work on this software.

According to records, the software depicting the market trends brings in the Forex trades in a much profitable way. The Forex traders will find that this software will autopilot, provide signals and also encourage individuals to make the particular trade deal. Several robust programs are available in online stores; these are truly helpful and affordable.

If the software projecting Forex market is used correctly and when the appropriate action is taken, significantly increase your initial investment will be seen. They shorten your learning curve; this is the greatest benefit of such kind of software. An individual need not have to gain an education in foreign exchange to invest or earn any particular license to get started in the Forex market and get successful. This software is particularly designed to aid the trader in investing and reaping profits quickly.

Try to see the Forex market from a broader view, this will give you some guidance and investment insight, thus informing you about foreign currency for buying and selling decisions. Often Forex traders consider this to be the most useful type of system in the Forex market. While buying this software, remember that you are a novice and first need to know the Forex business. First try to purchase an inexpensive one; this will however give you more than enough benefits as per your time, effort and money. This particular software that pinpoints market turns in Forex has often proved to be very useful for the investors expecting big profits.

When you think about Forex trading, one has to plan the proper money management according to its rules and regulations; it is better to find good Forex trading brokers so that things will be easy in trading Forex since they know the nook and corner of the real Forex trading.

Several reputed Forex trading brokers exist in the trading market, so care should be taken in choosing the best one.  It is always safe to enquire about their commitment and reputation before selecting them, so that Forex trading will be done in timely and efficient manner. Important factors to be considered before selecting Forex trading broker are given below:

The majority of profits will be coming from spread for Forex. The spread is nothing but the difference between the price at which you can buy a currency, and the price at which it can be sold at any particular point of time. So, you need to understand the spread charge when you are looking for Forex trading broker because the less spread charge will help you in saving some money during trading Forex and you will make the profit in quick time too, but it entirely depends on your money management in trading Forex.

In the countries like United States, it is mandatory for Forex trading brokers to be registered as a Future Commission Merchant, and then only they will become Forex brokers, it is something like having license to go for trading in Forex market and in addition to this license they should also be an associate of the National Futures Association.

In general, when you are beginning with some small capital amount to start with, it is important to choose their leverage options so that disappointment can be avoided, but more trade and more profit, keep this in mind since price movements will be in terms of cents only, you should have control over your Forex trading and its risk involved in its trading business.

Normally genuine Forex trading brokers will give some trading tool to their clients, like real-time currency prices, Technical analysis tools, Fundamental analysis tools, economic calendars and Forex rules book if any. It is better to identify that these trading services are provided by reputed Forex brokers.

Generally Forex trading brokers provide two or more types of Forex accounts, for example mini account and standard accounts, choosing any one of these accounts depends on their leverage options.

Trading Forex is non-stop market; therefore round the clock support is vital. So, make sure that broker’s customer support is good because you will be required to call them through phone regularly during your Forex trade, needless to say that situations in Forex trading may turn dramatically and you have to decide in fraction of seconds, so, it is imperative that your broker’s support should be flexible enough with your exchange frequency. This is a serious business since it involves currency so that your broker should be well equipped in these services and support. You can check your brokers even before giving your trading business to them by calling them, and just see how quickly they are responding and how much desired support are they giving?

It is a great idea to consult your experienced counterparts who are already in this business for sometime so that you will get better idea about Forex trading brokers through them and you will come to know who is the good, quality brokers are available right now for trading Forex. These Forex experts might have written about Forex reviews, Forex online and about real trading online.

So, it is not only just doing business in Forex trading, it is a matter of doing profitable business through quality Forex trading brokers, better bet on good quality brokers.

Real trading in general, one can have either an exceptionally profitable or extremely disappointing experience, one has to plan properly and execute them in a timely manner so that they can avoid last minute rush and disappointment. Some of the general Forex trading strategies and techniques to avoid Un-comfortable situations that may arise normally in Forex trading especially when you go for big one, isn’t? Here are those techniques to avoid those situations:

The most important thing is that Forex trading is not a gamble game like horse racing or footballs betting, if you think in that way, then just forget about Forex trading, even any trading in general, stocks and shares as well. It’s a trading basically which will be very important for one countries economic status. This is one of the strong factors should be in your mind, you cannot get rich within short span of time, if you think so, then you will expect some lose and get dejected. Normally trading Forex is a long-term goal and benefit, better don’t think it in the short-run, and then you will get your desired result. Don’t count the chickens before it is really hatched! If you do so, you may be ended up with wrong calculations and loss in Forex trading business.

Diversification of amount plays another important factor since it is distributed widely so that it can be balanced because in some case may lose something and in other may be profited. Diversification of money will always balance your Forex trading and moreover even if you invest very little amount of money and wait for some years, definitely it will yield more. It is not only investing big in trading, even small drops become ocean in one day. This is already proven mechanism since your money gets compounded and will give much return.

Another important aspect of trading Forex is that getting more emotions, there is no place for emotions here because it meant business and getting profit out of real trading. The most of the traders do make some common mistakes with their emotions which in turn sometimes they will be safer or most of the time they will be losers. Some traders do trading based on market emotions, if you follow those, then it is not a good practice in Forex trading. A lot of Forex reviews have been written about this, of course there should be some fluctuations, for every fluctuation if you get emotions, then it will not help you in long run especially in Forex trading business, you should have some patience and have to play waiting game to achieve success in this trading business.

There is Un-written rule in Forex trading is to follow the current trend in trading and act accordingly. This will always help in getting up-to-date information about current Forex trading and in turn will give an idea to trade wisely and timely. To know the current trend of Forex trading, a lot Forex reviews have been posted in Forex online system or daily Forex reviews have been written by many experts on topics like Daily Forex review, Review online Forex, Review Forex, etc…

It is always imperative that to test with some of the data in Forex Trading, so that you will not be confused in real time Forex trading since this Forex have complicated system to understand for beginners. Make sure that you are getting consistent profit in your test account and then if you go for real Forex trading, will give more profit, even if you want you can test stocks or share data with Forex trading system.

Now, it’s your turn to follow the above factors to make sizable profit in Forex trading system. Before wind up, just want to tell one thing that, nothing will be achieved without any proper and reasonable efforts with long-term goal in your mind.