Forex Daily News: July 5, 2010 – US Jobs Data Sends Dollar Down

Posted by admin on July 5, 2010 under daily forex analysis, Daily Forex review, daily technical anlysis, forex market, Forex Trader Review, Online Forex Review, Uncategorized | Be the First to Comment

USD Dollar (USD) – The Dollar weakened against most of the major currencies after the NFP report showed worse than expected data while job losses came out -125k vs. expected -100k. The Unemployment Rate came out 9.5% better than expected 9.8%. Stocks in the US fell with NASDAQ and Dow Jones falling by -0.46% and -0.47% respectively. Crude oil fell for a fifth day in a row hardly managing to close at 72.2$ a barrel. Gold (XAU) recovered a little from its previous losses and closed at 1211$an ounce. Today, US banks will be closed in observance of Independence Day, low liquidity might cause to irregular volatility in the market.

Euro (EUR) – The Euro rose further against the Dollar after the release of the US employment report hitting a 6 week high and extending its rally. The Unemployment Rate came out 10% better than expected 10.1%. The PPI came out unchanged at 0.3% as expected. Trading above the support level of 1.2470 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2480 and with a high of 1.22610. Today, the Retail Sales are expected at -0.1% vs. -1.5% previously.

EUR/USD – Last: 1.2544

British Pound (GBP) – After the NFP data came out in US the Sterling has reached 8 week fresh high at 1.5228 but shortly fell below the 1.52 zone. The Construction PMI came out 58.4 worse than expected 58.6. Trading above the support level of 1.5120 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5148 and with a high of 1.5228. Today, the Service PMI is expected at 55.2 vs. 55.4 previously.

GBP/USD – Last: 1.5179

Japanese Yen (JPY) – The Dollar recovered versus the Yen after the NFP data came out while attempting to rise back above the 88 zone. Breaching the 87.8 level will turn the momentum to positive for the pair. Overall, USD/JPY traded with a low of 87.31 and with a high of 88.20. No economic data is expected today.

USD/JPY-Last: 87.90

Canadian dollar (CAD) – The US Dollar rose in Forex Trading versus the Canada’s Dollar as investors observed contrarian figures in the US Labor sector. The loss on jobs but decrease in unemployment rate added upside momentum to the pair. Trading above the support level of 1.0530 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0554 and with a high of 1.0666. No economic data is expected today.

USD/CAD-Last: 1.0606

Forex Market review – The Dollar Index’s lowest daily close in six weeks

Posted by admin on June 27, 2010 under daily forex analysis, Daily Forex review, forex market | Be the First to Comment

Forex Market review

This Friday saw the Dollar Index’s lowest daily close in six weeks. The level of overall forex trading investor sentiment and the strength of the USD’s own fundamental backdrop will influence the Greenbuck, as both of these subjects are facing dramatic changes with a scheduled G20 meeting, deteriorating financial conditions in already unstable economies and the prominent risk of a negative nonfarm payroll reading on Friday. 

While risk appetite level, the relative economic health and level of yields behind the greenback are in flux, the currency’s status as a safe haven can easily overwhelm most other concerns that develop along the way.

Most common flaws involved in Forex trading

Posted by TomShort on December 21, 2009 under Daily Forex review | Be the First to Comment

Several traders get attracted to the sophistication provided by the multi indicators and make use of them in their Forex trading systems. A number of the confluence system indicators can show traders price movement. Because of this, Forex traders either end up over bought or over sold technical indicators like the momentum indicators, stochastic indicators, candle stick chart pattern recognition and Bollinger band break out neural networks that are supposed to be false intelligent systems. The technical indicators show traders signals that are similar to purchase or sell making the signal generated to be right.

Theoretically it sounds good however, in reality to arrive at a conclusion may be tough. As a result, the Forex traders are confused in taking correct decision. They wither enter too late or early still without being able to take a decision to enter the market. The major flaw is because of the use of useless trading system that does not serve the purpose of making gains, however confuses the traders and complicates the Forex trading unless the trader loses.

Another terrific flaw found in Forex trading is of an emotional nature between interwoven into the process. It is greed of the trader. A gainful Forex trade leads to exuberance and over joy, however it is the time when greed comes in and crosses the aspects of risk management. If traders are hooked to win out of greed they over ride all aspects to see more gains, only to see then crash to earth. They wait for the process to regain, however in dismay, some time and with worst possible losses.  It is the time when feat crops up and paralyses traders not making them to open any position. Therefore, while traders; traders must not override the emotional side of trading. They should stick to discipline of the trade that can protect them from committing the flow of Forex trading.

Another type of flow can happen when traders are unconcerned persons, lazy with no drive to obtain profits or feels the need to be gainful. These people would have entered into Forex trading because of the hearing it as an easy game. It is not a trade for them that involve skill, preparation, trade investment and trade management. It is a fun game for them, where loses do not make any kind of difference to then. Such persons can male a wrong footing with a wrong purpose. Flaws in Forex trading come because of the inadequate knowledge of the traders. Few of the losers start with best aim in the trade. Even if, they has obtained some knowledge from here and there, they may find it tough to apply them practically in the trade, Inadequate knowledge can be the major flow that stops traders from achieving success.