Posted by
admin on August 3, 2010 |
No comments
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
| Resistance |
1.3195 |
|
|
| Support |
1.3100 |
1.3050 |
1.2950 |
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
| Resistance |
1.5910 |
|
|
| Support |
1.5720 |
1.5640 |
1.5520 |
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
| Resistance |
86.90 |
87.70 |
88.10 |
| Support |
86.15 |
86.00 |
|
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
| Resistance |
1.0255 |
1.0345 |
1.0400 |
| Support |
1.0200 |
|
|
Tags: forex review, Forex reviews, forex strategies, forex trader, Forex Trading
Forex strategies are essential and inevitable part of Forex trading. The strategy planning and implementation makes a Forex trader more sophisticated and wiser into this Forex trading business. Forex trading market is highly volatile market where currencies keep on changing every time. Hence it is not recommended to follow this business desperately with the emotions or suggestions from unauthorised sources.
There are many Forex strategies used by the Forex trader. They can be categorised into two types, namely profit maximising strategies and risk minimising strategies. The strategies used by each Forex trader differ from each other. The selection of any strategy depends upon the objective of that trader along with his needs and trading abilities. One should analyse few factors before implementing any strategy. These factors may be like initial investment capacity, trading ability, risk tolerance capacity, account volume, currency pairs selected, geographical location, affiliated Forex broker, usage of trading system, profit targets, etc.
The most used Forex maximising strategy is leverage or margins. These leverage or margins allow the Forex trader to trade with more capital than actually what he has. These leverages are provided by the Forex broker. The usual ratio is 1:100. It means that 1 $ in account of the trader can borrow 100$ from the broker. Day traders get more leverage. The ratio as discussed above may differ from broker to broker. It may also differ with the account volume and the type of contract one has signed.
In case of risk minimizing strategies, the most popular one stop loss order. It allows the Forex trader to stop the trade and restrict their loss at a preset price. The Forex trading systems allow the traders to set this price. There is another parallel strategy to this which is called as trailing stop losses. There are many types of stop loss orders available. They mainly depend upon the broker to which the Forex trader is affiliated.
Another related strategy is an automated order entry. This allows a trader to enter into a trade at a preset price automatically. This price can be set at the trading platform. This method benefits the trader to enter the market at favourable time. Along with these strategies, a trader can also have a look upon the Forex option trading. These options may help the Forex trader to buy and sell currencies at predetermined rate at a point of time.
Apart from these trading strategies, a Forex trader is required to give attention to other aspects of the business. These aspects include selection of currency pairs for trading, trading period, entry and exit point, etc. The risks associated with this business cannot be eliminated fully but can be minimized to some extent. The success in this business also depends upon the condition of market and discipline of the trader.
