As you all know, there are quite a large numbers of options of Currency are available in the big world of FOREX trading. In this market of trading currency options are always being traded in the form of pairs for an e.g. dollar of USA verses Euro of Germany, which is being written in the simpler form as USD/EUR. This is the one pair of currency that is really very famous. There are huge numbers of currency pairs hat are being traded. There is another famous pair of currency which is traded on a wide scale and that is GBP/JPY.
Some other currency pairs are as follows:
EUR/FRANC
USD/JPY
USD/YEN
GBP/EUR etc…
In The above mentioned pairs of currency, the first currency that is being written in the pair is always known as the ‘base’ currency and has a pre fixed value of 1. Whereas the second currency that is being written in a pair of currency is known as the ‘quote’ currency and its specific value tells the trader that, what is the exact amount of the quote currency that will be needed in order to make a purchase of one single unit of the base currency?
For an example, if the specific pair of currency is USD/JPY and this pair of currency is equal to 94.70 then that mean you need to pay 94.70 yen in order to make a purchase of 1 US dollar. As the value of US dollar becomes stronger and stronger, the number 94.70 is surely going to increase, as it requires more amount of yen in order to buy 1 single US dollar. In this specific example, USD is the base currency, and JPY is the quote currency. Base currency always some extra potentials, as compared to the quote currency. FOREX option of trading is the one that is being based totally on the large amount of fluctuations that occur between different currencies and the continuously changing rates between some of the different possible pairs of currency.
Most of the times, an investor is the one that is genuinely very much interested in trading with FOREX option. An investor has all the opportunities of becoming a victorious trader just by getting good hold of the knowledge about large numbers of currencies and also about their coordinated movement that is being shown in relation to one another. A person who desperately wants to put his or her name on the list of successful traders, have to acquire sufficient amount of knowledge about this big world of FOREX trading. And if you have this knowledge, then there is no one who can stop you from making large amount of profits. Firstly learn the process, and then start doing it, otherwise you will end up making very big losses.
When you will be trying your hands in buying automatically operated system of FOREX trading software, it’s actually really very easy to be stocked and bogged down in glancing out each and every trading system and trying your level best in order to find out that which one is the best one for your trading process.
This is exactly the thing at which rip-off artists are counting on!
In this particular article, we are going to discuss about some of the basic steps that should always be kept in mind, while making a trade in the trading market.
There are quite a large number of traders that are being cheated by these trading brokers, who assures that they will be helping you in making big profits. But the reality is that they charge heavy fee from you and they leave you in the middle of the trading process. In this article we are going to tell you about some of the basic details that are going to keep away even the newbie’s from getting wedged in a trap of a scammer.
1. The first most important point that we need to discuss is that, before you start searching for a trading system, you should actually determine that what particular type of trading system would be the best one for you. You need to determine that which specific system of trading is best suited for you. Every other system of trading is believed to offer something really very different. You need to see that what are your requirements, and which trading system fulfills all your requirements.
This is believed to be an accurate way; you have the ability to focus on all your searches and you need to devote sufficient amount of time in order to find out the type of trading system that you want for your FOREX trading. This is the thing that is going to help you in protecting yourself. There are large numbers of people present in the trading market, which are all ready to take your advantage, but you need to protect yourself from them.
2. The second crucial point that you should always remember is that once you are able to get an idea about the type of trading system that you want, you should head over to your preferred search engine, in order to make a search on the trading system.
After opening the search engine, you need to type the word “automated FOREX system”. After entering this key word, there will be a long list of trading software’s that will be shown on your computer screen. You can then click on the appropriate system of trading and can choose on for yourself. You need to be really very careful about each and every step of your’s.
Forex trading is undoubtedly a very exciting activity because of the short time span in which it is able to produce an immediate fortune for the investment made by the Forex trader. The major drawback of the forex market is that it is a very big an very much a very dynamic market. This looks very much appealing to all humans who want to inherit profit in a short time. This nature of the forex market lures the greedy investors into taking up forex trading as a profession before they are ready for it. A business is what a forex trading should be treated as. Many amateur traders who do this as a part time often escape the arena of professionalism. No business can reap success unless and until it is planned and organized in a good professional manner. There is not going to be any profit in your lemonade stand if you are going to sit at home without manipulating the costs and working in an efficient manner. In the same manner, you can not expect to do well in forex trading by just investing without any plan or strategy. As forex trading is very much an informal way of going about doing business, many investors sit at home an d make decisions without taking into consideration all the statistics and data that is made available to them. By doing this, the investors put their own investments at stake and also have a chance of losing it partially or on the whole. This is the quickest way by which you can be broke in forex trading.
Traders manage to take decisions and trade in the most minimum amount of time they can get in their daily routine. The time that most people trade is when they have their food or they are baby sitting. These kinds of efforts manage to multiply the chances of the traders losing their money due to their negligence. The traders set the path for defeat by not allocating separate time for trading. The traders search for shortcuts in order to make decisions, they just take random guesses or make their decision based on a random opinion that they have got. The traders almost treat forex trading as a home casino. You might win on a roulette table more often by just guessing or by chance. The same cannot be implemented in forex trading as hard earned money cannot be left just like that to chance. In fact we need to be like the scientists and analyze the conditions and evaluate market happenings, use our tools and strategies and then make the right decision.
There should be no role for emotions. The traders should never rest on accolades as it shows a negative impact on the business. The forex trading should be taken up seriously and the trader should consider it as a business and strive to reach greater heights.
If you plan to trade in the forex trade and are looking for some forex assistance, then you have come to the right place. The road to forex will lead you towards success if you use a simple approach in your trade that is being used by the pro forex traders to make heavy profits. This approach is very coolly ignored by the newbie’s; however you are not supposed to worry about that as I will share the tricks with you.
It is very common that the bullish trends do commence in the similar way and one can observe it on any of the forex charts. They do begin by breaking into novel forex charts highs and in this the trend keeps on continuing in the market. So, coming to a conclusion higher ways of odds getting in on the big trends and gains is purchasing such breakouts. It is so simple and practical, then why is it not understood by the forex traders.
Actually speaking, the forex traders fail to purchase these breakouts due to am misconception prevailing among them that feel that anyone can foresee the market conditions in the forex market in advance and purchase exactly the lows and sell the same at a higher price. However, this is only a myth prevailing in the minds of such traders. The forex traders do follow this method of trading that is mere prediction or guesswork and finally fail. They lose great amount of money in their trade due to this false prediction. Particularly, these forex traders rarely observe a breakout and see a new trend breaking in, but they do fail to purchase the breaks. This is so as they want to have the rates to pullback in order to fetch them at a good price; however such breakouts carry out and the trader just keeps on waiting and that is all in vain.
Then the question that arises here is how can one buy the breakouts?
The logic here is all the breakouts do not keep on continuing and therefore one needs ot have a proper foresight and be selective. They should purchase the levels only that were steady in the past however, the traders regard essential if the level goes out of the way. If you are trading the breakouts to new heights, the number of times its level had held previously prior to the break, the more it is better. There should be minimum six to eight tests that are considered better.
While trading in the breakouts, one is unable to keep hold of the accurate bottle of the movement, however that is just impossible. Considerably, you do not have to keep on worrying regarding this issue, you only need to keep your attention to get the odds on your side and make great deal of profits.
USD Dollar (USD)
The Dollar gained versus most majors as Industrial Production came out weaker, lowering risk appetite. Industrial Production came out 0.1% versus 0.4% expected. PPI came out weaker with 0.3% versus 0.6% forecast. TIC Long-Term Purchases came out better with 40.7B versus 27.3B expected. NASDAQ and Dow Jones rose slightly by 0.27% and 0.29%. Crude gained by 0.68% closing at 79.44$ a barrel and Gold (XAU) remained almost unchanged with 0.16% change closing at 1140.5$ an ounce. Today, Building Permits are expected higher with 0.59M versus 0.57M prior and Core CPI is expected with 0.1% versus 0.2% prior. Housing Starts are expected higher with 0.61M versus 0.59M and Crude Inventories are expected with 1.2M versus 1.8M prior.
EURO (EUR)
The Euro weakened versus the Dollar and the Pound as risk appetite weakened and ECB\’s president Trichet said a strong Dollar is important for the world economy. European Trade Balance came out better than expected with 6.8B versus -0.9B expected. EUR/USD traded with a low of 1.4806 and with a high of 1.4998. Today, European Current Account is expected with 0.6B versus -1.3B prior. ECB President Trichet will speak in Frankfurt.
EUR/USD – Last: 1.4870
|
Resistance
|
1.4900
|
1.4925
|
1.4955
|
|
Support
|
1.4810
|
1.4740
|
1.4703
|
British Pound (GBP)
The Pound remained almost unchanged versus the Dollar as CPI figures came out better than expected but Industrial Production in the U.S lowered investors Risk Appetite. CPI came out 1.5% versus 1.4% expected and RPI came out -0.8% versus -0.9% expected. Overall, GBP/USD traded with a low of 1.6755 and a high of 1.6872. Today, MPC Meeting Minutes will be released. CBI Industrial Order Expectations are expected with -47 versus -51 prior.
GBP/USD – Last: 1.6800
|
Resistance
|
1.6850
|
1.6900
|
1.6955
|
|
Support
|
1.6750
|
1.6670
|
1.6625
|
Japanese Yen (JPY)
The Yen gained versus the Euro and weakened versus the Dollar as risk appetite lowered after Industrial Production in the U.S came out weaker than expected. Overall, USD/JPY traded with a low of 88.73 and a high of 89.53 and EUR/JPY traded with a low of 132.44 and a high of 133.58. Today, All Industries Activity is expected with -0.1% versus 0.9% prior.
USD/JPY-Last: 89.17
|
Resistance
|
89.65
|
90.00
|
90.18
|
|
Support
|
88.80
|
88.60
|
88.25
|
Canadian dollar (CAD)
The Canadian Dollar dropped as Risk Appetite weakened following U.S production data. Overall, USD/CAD traded with a low of 1.0464 and a high of 1.0617. Today, Canadian CPI is expected with 0.2% versus 0% prior and Core CPI is expected with 0% versus 0.3% prior.
CAD/USD – Last: 1.0535
|
Resistance
|
1.0620
|
1.0680
|
1.0735
|
|
Support
|
1.0475
|
1.0450
|
1.0425
|
Research by http://www.ufxbank.com
Is the CAD Headed for a Breakout? By GoLearn Forex
USD/CAD:
The Canadian Dollar from a technical standpoint is giving every indication it is going to breakout. Price has been consolidating for several weeks. You can see more clearly the consolidation in the Chart below depicted by the orange triangle.
Typically we draw a triangle where only one side represents the slope. However, the triangle drawn below is indicative of investor’s uncertainty with regards to the CAD. The Canadian economy is holding strong. The CAD is a commodity currency and will rise and fall as commodity prices rise and fall (in particular Oil). The Dollar has been rallying which should mean a weaker Loonie, but this rally stems from positive U.S economic data. The U.S economy and that of their northern neighbor are linked to a certain extent as they feed off of one another. Therefore, positive U.S data should also be good for the CAD. Therein lies the conflict and thus you have a dual sided sloping triangle.
The CAD is currently trading above its 50 day MA. Similar to the AUD and NZD it failed to breach the 100 day MA in spite of the Dollar rally. As the CAD wedges itself into the triangle we are looking for the following to occur in order to trip an entry signal. If the Loonie produces a candle south of the 50 day MA and south of the bottom slope of the triangle then look to enter a Long CAD position. Alternatively, if the CAD produces a candle body north up the upper slope of the triangle and the 100 day MA then enter a Short CAD position. Lastly, if a Short CAD signal triggers we see a near term take profit level at 1.0880 coinciding with the Fibonacci 23.6% Retrace level. We view this level as strong point of resistance.
Oil Takes Off by GoLearn Forex
The FOMC meeting came and went without stirring the waters. In the Euro-zone and London, Equity Markets finished their sessions in positive territory ahead of the highly anticipated U.S FED rate decision. The accompanying FOMC statement was intentionally left mostly unchanged so as not to roil markets. It served its purpose well as the DJIA finished the day off slightly lower by 10.88 points to close at 10,441.12 while the tech heavy NASDAQ closed up 5.86 points to 2,206.91.
In the Currency Markets the Dollar followed Equity Markets finishing the session nearly flat against its G-7 counterparts. The AUD gave up .61% still reeling from CB comments that took on a more dovish tone in regards to any near term future rate hikes.
Oil soared to 73.54 during intra-day trading before leveling off the day at 72.66, a gain of $1.97. Gold climbed $12.70 an ounce to 1,137.90. On the Agricultural front Soybeans, Cotton and Sugar continued to rally while Copper, Wheat and Corn declined on Dollar strength.
On the economic data docket for today we have the BOJ rate decision to be announced, although no change is expected. In the U.K, Retails Sales are set to be released while in Canada CPI data will hit the wire. In the U.S, Jobless Claims will print as will the measure of Leading Indicators and the Philadelphia FED survey.
Upcoming Forex Events for December 17, 2009
GBP Retail Sales (MoM) Forecast 0.50% Previous 0.40%
CAD Core CPI (MoM) Forecast 0.10% Previous 0.10%
USD Initial Jobless Claims Forecast 470.00K Previous 474.00K
JPY Interest Rate Decision Forecast 0.10% Previous 0.10%
Analysis by http://www.golearnforex.net
If you are the kind of person who is looking for one of the best available tools for carrying your process of FOREX trading and if you are the one who is seeking help from these tools of trading in order to be able to make really very big profits out from the FOREX market, then this particular article is meant for you only. After reading this article, you will be able to find answers to all the questions that are continuously running in your mind. If you are under the false assumption that there is some sort of a single trading tool, that is believed to be the best, then you are very much wrong because the hard core fact is that there is no such single paramount FOREX trading tool. The hidden secret behind assembling your successful trading strategy is to become skilled at the way of combining various types of trading strategy in order to turn it into the best one. You need to make all these efforts in order to form a strategy for the purpose of FOREX trading in order to achieve high levels of success. And with high levels of success, comes the high level of profits, that are going to fulfill all your trading dreams – now let’s take a look at the proper or the appropriate way of doing all this.
If you are really very desperate about making a big time win at the surface of FOREX trading, then you are supposed to obtain an optimum level of understanding for providing technical support, for obtaining high levels of resistance and for being able to read various trading patterns that are being indicated in the form of different types of charts. When it comes to the topic of trading charts, then don’t ever fall for the propaganda that has been created by candlestick type of trading charts, there is no such type of candlestick configuration which can be principally reliable and trustworthy, so you need to stick with basic and simple bar charts. Now there is a strong need for you to append or add all your tools of FOREX trading and they will be categorized into a large number of categories…
Now we are going to discuss one of the most important aspects of FOREX market and that are known as Moving Averages.
The other factor that is supposed to be really very crucial for the purpose of making a trade is the volatility that is being shown by the FOREX market. This particular market of trading is really very volatile in it structure, it keeps on changing. But if you will be able to make a proper judgment about these changes, then you will surely be the one making quite a large amount of profits.
The trading in a foreign exchange market is very much an exciting thing to do and not only that but also it is a very much profitable activity. But it also some features that is not so good and by that I mean the term “risks”. It is very much an important thing to understand that there are various opportunities to earn a big profit in the trading market and there is also an equal amount of chances to lose your money. Hence it is very much important to understand that trading consists of both opportunities and pitfalls. A very much brief note about forex trading is given in this passage about the investors and traders in the market, concepts of the forex market and also some strategies. Dealers are always available at your beck and call to answer your queries and help you with any aspect of forex trading.
The forex market is so widely popular because of the features it offers. There is an excellent efficient execution coupled with analysis that is concise and expertise. And the most attractive feature of them all is the cost structure that is so very attractive as well as competitive. Banks offer all round services regarding trading which deals with exchange of foreign currencies and derivative products. Most employees in the market are very good dealers as well as excellent analysis specialists. All these people can boast of experience and about their robust knowledge in such fields. The experience in home land as well as the experience in an international exchange makes these people even more valuable. While trading in forex market a full day service is offered and the analysis of the market takes place on a daily basis. The price offered for all this varies from one company to another.
A very high regard is given to good service to the customers, a very good strategy is worked out for traders and there are also recommendations for trading. Various hedging programs are also made available along with latest news and data that is required.
The cost for trading is generally different from each bank. The cost is decided along with the terms for trading. It entirely depends on the amount of transactions that are made. The deposit can be of any form, starting from cash deposition to government securities or even guarantee from banks and other legal means. The strength offered by a balance sheet is more than an enough deposit for very big corporate companies or clients who run an institution in order to trade in the forex market. The type of account that the trader holds is the factor which determines as to what the deposit amount should be for an account. Specific requirements determine the other account information.
USD Dollar (USD)
The Dollar gained massively across the board on the day the Federal Reserve decided to leave rates as expected at 0.25%. The Dollar rose after the announcement and continued its gaining after Asia markets opened. Earlier, the Building Permits came out 0.58M better than expected 0.57M. CPI came out unchanged as expected at 0.4%. Wall Street finished mix after being unable to hold in the positive side. Stocks turned to the negative after the statement of the FED about monetary policy. The Dow Jones fell 0.10% and NASDAQ rose by 0.28%. Crude Oil kept gaining for the second day closing at 72.77$ a barrel after the oil inventories showed a 3.7M drop. Gold (XAU) gained also closing at 1137$ an ounce. Today, the Initial Jobless Claims expected at 470K vs. 474K previously. The Philadelphia Fed Manufacturing Index expected at 16 vs. 16.7 previously.
EURO (EUR)
The Euro fell against the Dollar and the Pound, breaking through the 1.4500 and 1.4400 support levels, after the CPI came out 0.5% worse than expected 0.6%. The breakdown of this level could bring the pair to fresh new lows. Manufacturing PMI came out 51.6 better than expected 51.5. Overall, EUR/USD traded with a low of 1.4379 and a high of 1.4590. Today, the Italian Unemployment Rate expected 7.7% vs. 7.4% previously.
EUR/USD – Last: 1.4410
|
Resistance
|
1.4500
|
1.4600
|
1.4675
|
|
Support
|
1.4345
|
1.4300
|
1.4235
|
British Pound (GBP)
The Cable was the best performer among majors. GBP/USD momentarily broke above 1.6370 and rose to 1.6404, reaching a one-week high but then pulled back, breaking below the 1.6300 support level, reaching lows of 1.6230. Claimant Count Change came out -6.3K better than the expected 14K. Overall, GBP/USD traded with a low of 1.6230 and a high of 1.6409. Today, the Retail Sales expected at 0.5% vs. 0.4% previously. The CBI DTS expected at 16 vs. 13 previously.
GBP/USD – Last: 1.6275
|
Resistance
|
1.6425
|
1.6475
|
1.6525
|
|
Support
|
1.6275
|
1.6210
|
1.6170
|
Japanese Yen (JPY)
The Yen fell against the Pound and the Dollar. The Dollar reached a one-week high against the Yen as the Federal Reserve said deterioration in the labor market is abating while it will keep its low rate for an extended period. Overall, USD/JPY traded with a low of 89.37 and a high of 89.96. Today, the interest rate decision of The Bank of Japan (BOJ) expected unchanged at 0.1%.
USD/JPY-Last: 89.65
|
Resistance
|
89.95
|
90.40
|
90.75
|
|
Support
|
89.30
|
88.75
|
88.35
|
Canadian Dollar (CAD)
The Canadian currency gained as crude oil and stocks rose. It was little changed after policy makers in the nation and the U.S. made commitments to keep interest rates at historic lows. The Manufacturing Sales came out 2% better than expected 0.5%. Overall, USD/CAD traded with a low of 1.0570 and a high of 1.0641. Today, The Core CPI expected unchanged at 0.1%. The Foreign Securities Purchases expected at 10B vs. 13.59B previously.
USD/CAD – Last: 1.0615
|
Resistance
|
1.0640
|
1.0670
|
1.0700
|
|
Support
|
1.0570
|
1.0550
|
1.0515
|
Research by http://www.ufxbank.com
Review Key Support and Resistance Levels for USD by GoLearn Forex
Key Support & Resistance (S/R) Levels:
As the Greenback continues to rally heading into the end of the year we thought it would be a good time to review a couple key S/R levels. Traders generate S/R based on a number of factors. One key factor is based on the tenor of the chart the trader is using. A trader using a tick or minute chart will be less concerned about S/R generated from a 4 hour chart that is 100+ pips from the current handle. However, that same trader will want to know where the longer term S/R levels sit. If price moves towards those points he can integrate them into his trading strategies thereby profiting and or avoiding losses.
GBP/USD:
The Cable is currently sitting below its 100 day MA which generates an already negative bias. A candle body below 1.6198 would generate the next Short entry point Near term profit taking would be the 200 day MA. If the 200 day MA is breached we would target the low of this range bound period near 1.5683 which also represents the Fibonacci 38.2% Retrace level. The 38.2% Retrace level was generated from the Sterlings turn around in January of this year.
AUD/USD:
The Aussie has shown great resilience and for good reason. The RBA had taken a hawkish stance on rates as it was amongst the first to raise rates. The Australian economy is in relatively good shape. Additionally, the AUD is a commodity currency and it has ridden the commodity rally. Currently the AUD is sitting just below the 50 day MA. A candle body appearing below .8944 equal to the Fibonacci 76.4% Retrace level, which also coincides with recent support levels would trigger a near term Short entry. We would increase the Short position with a close below the 100 day MA, currently holding at .8834. A long signal would be generated with a close well above near term resistance at .9325.
With the EUR taking a sharp nose dive yesterday it prompts us to look at recent relative price levels on the G-7. The EUR/USD is the most commonly traded pair in the world. The price of the EUR has broad implications on the relative value of other G-7 currencies. Although the below data can be shown graphically it is easier to view price differentials in a table. If the EUR is a leading indicator of relative value then the CAD, AUD, and GBP may be in for a minor drop.
Historical
Date EUR CAD AUD NZD JPY GBP
2009-10-02 1.4576 1.0797 0.8652 0.7160 89.8050 1.5946
2009-10-01 1.4545 1.0839 0.8697 0.7149 89.6050 1.5955
2009-09-30 1.4640 1.0695 0.8828 0.7232 89.7050 1.5982
2009-09-29 1.4587 1.0846 0.8703 0.7143 90.0885 1.5961
Current
Date EUR CAD AUD NZD JPY GBP
2009-12-15 1.4533 1.0611 0.9067 0.7224 89.6355 1.6272
US Producer Prices Climb by GoLearn Forex
Global Equity Markets were mixed on Tuesday as Dubai continues to sort out its debt repayment obligations. In the U.S Producer Prices climbed 1.8% which was more than double expectations. This caused stocks to retreat as it may engage the U.S Fed to raise rates out of necessity instead of a planned withdrawal from its current quantitative easing policies. The DJIA slid 49.05 points to close at 10,452. Ahead of the rate decision today traders have consolidated positions as markets may move drastically depending on what language the Fed uses.
There are a number of other economic data releases on the docket for today. Oil traders will be watching Crude Oil Inventory figures. CPI data as well as Housing Starts and Building Permits will also be on the wire today. In the U.K Jobless Claims will print although no major changes are expected. GDP in Australia has already printed slightly below expectations.
The Greenback continued to advance against its G-10 counterparts with the AUD giving up 1.15% for the day. The DXY closed above the 100 day MA to 76.961 helping to legitimizing the recent rally. Gold and Oil were essentially unchanged finishing the U.S session at 1.125.20 and 70.69 respectively.
Upcoming Forex Events for December 16, 2009
EUR CPI (YoY) Forecast 8.00% Previous 7.80%
USD Core CPI (MoM) Forecast 0.20% Previous 0.20%
USD CPI (MoM) Forecast 0.40% Previous 0.30%
USD Interest Rate Decision Forecast 0.25% Previous 0.25%
Analysis by http://www.golearnforex.net