Posted by Daytrader on October 29, 2009 under Daily Forex review | 
A number of misconceptions are doing the rounds about what Forex market and Managed Forex accounts are all about. Many myths are going all around the internet about what exactly the Forex market and managed Forex accounts are really all about. The foreign exchange market can be merely said to be a market where currency of one country can be exchanged for another. So the Forex market can be used by several organisations to travel across countries, hedging as well as for merely some business.
Buying low or selling high are the ways by which a profit can be made in the arena of Forex trading. This mode of trading has gained quick popularity due to ease of trading it online. The following points will hold up the 9 myths that are commonly associated with this form of trading:
1. It is a child’s play to deal in Forex market. Many people get into this trade without even thinking how difficult it can be. Some people think theoretical knowledge is enough whereas others have the notion that it is completely automated package that we can just purchase.
We all know this is not true. Time, money and effort are required in great deal for starting. So if one is not fine with this idea, the Forex market should not be his aim.
2. There is hell and heaven difference in between stock market and Forex. One must not be too confident. Just because he did some good business in stock market he will be lucky in Forex trading too. The differences that normally occur are:
The foreign exchange is open 24 hrs a day, so it is a bit difficult to keep a watch throughout the whole day. Buying on hold is not possible in this type of a market..
3. Since it is not possible for any Forex trader to monitor the going on throughout the day he has to apply or use automated trading software that can do the job on his behalf.
4. Strategies that worked wonders for someone else may not work for you too. You always need to keep your eyes and ears open. If not watchful you have to repent later on. So manage your money by your own. Have better understanding of what you are doing.
5. So as to say the Forex market is not demanding a commission but as a Forex trader you end up paying the broker a cut from your share. So from your spread they are gaining. The difference between a bid and ask can be said to be a spread.
6. People can be conned – People who are not careful enough to win, like to put the blame on the Forex market. Lots of investors are dealing with it and this statement is not true. You have to give it time and it will give you profits.
7. It is all about trial and error method. No one can make exact predictions about the profitable income being made. If you were aware about the rates that will come up exactly then the whole purpose of having a foreign exchange is killed. Here you make money on odds.
8. Having a very complicated trading strategy is a must. It is in fact the opposite. A sorted out scheme can do the wonders if followed strictly and with careful calculations.
9. A lump some of money is required to trade in the Forex market. Not at all! Even if you invest a small amount Forex has provisions Trading can be successful by that too.
But if you are using Managed Forex account, one thing you have to take care of. Never let the pro manager have more knowledge than you do.
Posted by TomShort on October 28, 2009 under daily technical anlysis |
USD/CAD:
We have noted several times a formation we refer to as a Step pattern. More commonly this is identified by Lower Lows and Lower Highs and vice versa. We picked up on this pattern emerging on a 4 hours chart. We identified the possible start of this pattern shortly after the BOC publicly declared it’s sentiment for a “weak Canadian Dollar”. We assured you that there would still be time to catch this move even if you could not trade the actual news.
We suggested that you wait for the Step to appear and buy on the dip which was a confirmation of our pattern formation. On the graph that it is depicted near the 3 and a yellow circle. The exit for taking PNL we had at 1.0660 a prior support resistance point.
INSERT GRAPH
EUR/USD:
The Squeeze Play. We talked about this move where we are seemingly forced into a breakout. In one of our earlier pieces we mentioned that our experience told us not to bet on the Squeeze Play, meaning trade against the direction of the existing trend. I must admit we got carried away by the hoopla of crossing 1.50.
So the question you all should pose” is why in this case do you bet against the trend when one of the number one rules of technicians is never bet against the trend”. The answer is based on the number two rule of technicians and that is; trade for the outcome that has the highest statistical probability of occurring. To explain this further lets pose a question. Why didn’t the market make this move a while ago similar to the recent strong moves in CHF & AUD?
INSERT CHART
The answer is the Strength of the move was deteriorating in advance of 1.50. Every trader had their eye on 1.50, but obviously no one was a real buyer (for now) otherwise at 1.4830 when momentum started to stall we would have had traders continuing to bid up the EUR. Lastly, when price action was negligible on the big cross of 1.50 that should have been another tip that there were no big orders lined up to continue buying north of 1.50.
We added a MACD to indicate when the momentum started to wane. There are number of overbought tools on your platforms that you can use, from Stochastics and Oscillators to something as simple as the RSI.
Analysis by http://www.golearnforex.net
USD Dollar (USD)
The Dollar rose across the board. A rise in risk aversion following an unexpectedly drop in New Home Sales sent stocks lower worldwide. The Dow Jones fell for the 4th consecutive session and ended at 9,763.The Standard & Poor’s 500 Index dropped 2% on concern a rally in equities this year outpaced the prospects for economic growth. New-home sales unexpectedly fell last month to an annual rate of 402K, from a revised 417K pace in August. Crude oil fell from $79 a barrel to $77.20 on stronger Dollar. Gold (XAU) continues to move away from the highs of the year and fell to test levels below $1,030 an ounce. Today, The Gross Domestic Product (GDP) is expected at 3.1% vs. -0.7% previously. The Initial Jobless Claims are expected at 520K vs. 531K previously.
EURO (EUR)
The Euro kept weakening versus the Dollar for the 4th day in a row. The currency slumped against Dollar and Yen, reaching a 2 week low against both safe havens. The German Consumer Price Index (CPI) came out as expected at 0.1%. Overall, EUR/USD traded with a low of 1.4690 and with a high of 1.4840. Today, The German Unemployment Change is expected with 15K vs. -12K previously. The German Unemployment Rate is expected at 8.3% vs. 8.2% previously.
EUR/USD – Last: 1.4700
|
Resistance
|
1.48
|
1.4842
|
1.489
|
|
Support
|
1.471
|
1.4675
|
1.465
|
British Pound (GBP)
The Pound failed to hold above 1.6400 versus the Dollar finding support only at 1.6360 following economic data in the U.S and Dollar\’s strength. GBP/USD peaked at the highest price for the current week but it was unable to hold versus the strengthening Dollar. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6466. Today, Net Lending to individuals is expected unchanged at 0.7B. The Mortgage Approvals also expected unchanged at 52K.
GBP/USD – Last: 1.6368
|
Resistance
|
1.651
|
1.6575
|
1.6640
|
|
Support
|
1.6355
|
1.6285
|
1.6240
|
Japanese Yen (JPY)
The Yen rose sharply versus most majors as weak economic data sent world stocks lower fueling risk aversion. The Yen reached the highest in 2 weeks against the Euro amid signs the global economic recovery is losing steam, damping demand for higher-yielding assets. Industrial Production came out 1.4%better than 1.1% expected. Overall, USD/JPY traded with a low of 90.54 and with a high of 91.80. Today, Household Spending is expected lower with 1.2% versus 2.6% and Tokyo Core CPI is expected with -2.0% versus -2.1% prior.
USD/JPY-Last: 90.42
|
Resistance
|
91.3
|
91.75
|
92.1
|
|
Support
|
90.5
|
90.1
|
89.9
|
Canadian dollar (CAD)
Canada’s currency depreciated against its U.S. counterpart to the lowest level in more than three weeks as declines in crude oil, the nation’s largest export, and stocks damped demand for higher-yielding assets. Overall, USDCAD traded with a low of 1.0636 and with a high of 1.0810. Today, The Raw Materials Price Index (RMPI) is expected at 1% vs. 3.7% previously.
CAD/USD – Last: 1.0790
|
Resistance
|
1.08
|
1.0855
|
1.0898
|
|
Support
|
1.068
|
1.063
|
1.0587
|
Research by http://www.ufxbank.com
Posted by Daytrader on under Daily Forex review |
USD Dollar (USD)
The Dollar strengthen during yesterday trading session as Confidence among U.S. consumers unexpectedly fell in October for a second month. The Conference Board’s confidence index dropped to 47.7 from a revised 53.4 in September. NASDAQ decreased by 1.2% and Dow Jones slightly rose by 0.14%. Crude oil rose by 1% closing at 79.55$ a barrel after a volatile trading session as investors wait for the oil inventories today. Gold (XAU) weakened by 0.7% closed at 1035.4$ an ounce. Today, Core Durable Goods Orders are expected at 0.6% vs. -0.3% prior, New Home Sales are expected to rise from 429K to 443K.
EURO (EUR)
The Euro weakened versus the Dollar for the third day in a row on concern a rally in stocks and commodities can’t be sustained. M3 Money Supply came out worse than expected at 1.8% vs. 2.1% forecast. Overall, EUR/USD traded with a low of 1.4770 and with a high of 1.4926. Today, German Prelim CPI is expected at 0.1% vs.-0.4% previously.
EUR/USD – Last: 1.4811
|
Resistance
|
1.4824
|
1.4927
|
1.5046
|
|
Support
|
1.4770
|
|
|
British Pound (GBP)
The Pound strengthened against the Dollar after the Confederation of British Industry\’s distributive trade\’s survey reported sales balance rose to +8 in October from +3 in September, better than economists\’ forecasts of a rise to +5. This is the fastest pace of growth since December 2007. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6438. No economic data expected today.
GBP/USD – Last: 1.6358
|
Resistance
|
1.6438
|
1.6636
|
1.6693
|
|
Support
|
1.6286
|
1.6250
|
|
Japanese Yen (JPY)
The Yen rose against the Dollar for the first time in 6 days as a plunge in Treasury yields after the record $44 billion auction in two-year notes made the Dollar less attractive to Japanese investors. USD/JPY traded with a low of 91.70 and with a high of 92.32. Retail sales came out at -1.4% vs. -1.5% forecast. No economic data expected today.
USD/JPY-Last: 91.18
|
Resistance
|
91.57
|
92.19
|
92.32
|
|
Support
|
90.77
|
90.48
|
|
Canadian dollar (CAD)
The Canadian Dollar appreciated from a three-week low, gaining for the first time in four days amid speculation its decline was too big to be sustained after it reached a key technical level. Overall, USDCAD traded with a low of 1.0626 and with a high of 1.0716. Today, BOC Gov Carney Speaks.
USD/CAD – Last: 1.0664
|
Resistance
|
1.0696
|
1.0717
|
|
|
Support
|
1.0630
|
1.0500
|
1.0450
|
Research by http://www.ufxbank.com
