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daily forex analysis | Tags: ,

GoLearnForex Analysis 12/11/2009

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November 12, 2009 at 10:15 am

CAD Gains More Against USD Than Other Major Currencies by GoLearnForex

USD/CAD:

Since November 6th, amongst the G-10 the CAD has gained more than any other currency versus the greenback.  The CAD has gained 2.71% through November 11th.  We will present 2 reasons for this move.  The Canadian Dollar lost the most amongst the G-10 in the weeks prior to November 6th.  It began with the BOC cautioning the markets about its remaining tolerance of a strong Canadian Dollar.  That was followed by a couple of poorer than expected economic releases.

The Dollar during that period of time strengthened as well when risk aversion was back.  Doing a straight current price comparison most of the G-7 has since returned to their respective levels prior to the Dollars run.  The only currency that did not retrace most its losses was the CAD. Once the other pairs abutted their support and resistance levels they began to consolidate.  The Canadian Dollar still had further room to appreciate versus it prior loss and it has.

INSERT CHART

The second reason that we alluded to earlier can be seen by the formation of a Descending Triangle.  Trend is clearly still favoring the Canadian Dollar. The bottom line of the triangle represents short term S&R. On the top line, the slope of the hypotenuse, represent the trend.  As price trades with the trend line towards S&R we anticipate a breakout to occur.  You can see that we have just broken below short term S&R, thereby advancing the CAD even further.

Quiet USD Rally as Gold Continues to Climb the Charts by GoLearnForex

Global Equity Markets advanced again on Wednesday.  In the U.S the DJIA closed up 44.29 points to 10,291.26 in lighter than normal volume due to the Holiday.  The Dollar strengthened later in the day after the DXY briefly touched below 75.00 The Sterling came in as the big loser giving up 1.05% to trade at 1.6570, while the CAD advanced again today up nearly .4% to 1.0450.

In spite of the quiet Dollar rally Gold continued its climb to close at 1,118 and a gain of $12.  Investors tend to buy Gold when economic times are uncertain.  The purchase of large amounts of Gold by India and Sri-Lanka last week, in addition to the G-20 summit in which all members agreed to maintain quantitative easing programs for as long as necessary, have led investors to believe Gold will be in demand for quite some time to come. Oil was flat for a second day in a row closing below 79.50.

This week has been light in the way economic releases.  Tomorrow, Australia’s Unemployment figures are set to print.  We would expect that if these numbers underperform that the AUD will lose some of it strength given the current stance of the Australian Central Bank.  In the U.S. Continuing Claims and Initials Claims are due out and although they are a weekly print, it may confirm the dismal employment situation in the U.S.  Traders are looking for any signs that the employment situation is improving and therefore they will be watching these weekly numbers closely.

Upcoming Forex Events for November 12, 2009

EUR Industrial Production (MoM) Forecast  0.60%  Previous  0.90%

USD MBA Mortgage Applications  Previous    8.20%

USD Initial Jobless Claims Forecast    512.00K  Previous  512.00K

EUR ECB President Trichet Speaks

Analysis by http://www.golearnforex.netNOV11CAD

daily forex review | Tags: ,

Daily Review 12/11/2009

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November 12, 2009 at 10:08 am

USD Dollar (USD)

Dollar closed the day on a mixed note after a low liquidity trading session amid U.S. bank holiday. U.S. stocks future print modest gains reaching fresh year highs, suggesting dollar bearish rally is not over. The NASDAQ rose by 0.7% and the S&P 500 gained 0.5%, The Dow Jones appreciated 0.43% closing at 10,291. Gold (XAU) reached a fresh historical high at 1118.60$ an ounce to close the day. Crude Oil also rose closing above 79$ a barrel. Today, The Initial Jobless Claims expected unchanged at 512K. The Federal Budget Balance is expected at -150B vs. -46.6B previously.

EURO (EUR)

The EUR/USD has done little in the last few days, it attempted to break yearly high, yet failed at the 1.5050 level, triggering some modest profit taking among investors. It was a French Bank Holiday in Europe. Overall, EUR/USD traded with a low of 1.4952 and with a high of 1.5047. Today, The ECB Monthly Report will come out and might show that Europe’s economy expanded last quarter, damping demand for the U.S. currency as a refuge. Later ECB president, Jean-Claude Trichet will speak. The Industrial Production expected at 0.6% vs. 0.9% previously.

EUR/USD – Last: 1.4994

Resistance

1.5025

1.5065

1.5125

Support

1.4910

1.4875

1.4815

British Pound (GBP)

The Pound declined by the most in almost three weeks against the dollar after Bank of England Governor Mervyn King said a weaker currency should lead to a recovery in the economy. Sterling fell under the 1.6600 level, after U.K. inflation statement, that present the idea that the BOE is likely to keep policy steady for an extended period amid what is likely to be a slow economic recovery. GBP/USD traded with a low of 1.6534 and with a high of 1.6797. Today, No economic data expected.

GBP/USD – Last: 1.6600

Resistance

1.6625

1.6670

1.6725

Support

1.6500

1.6465

1.6405

Japanese Yen (JPY)

The Japanese currency traded without clear direction against the dollar and closed almost unchanged. The currency needs to break through the 90.35 level in order to stay bullish but so far it can\’t hold above 90 levels. The Yen strengthened against the sterling after the inflation report came out. Overall, USD/JPY traded with a low of 89.28 and with a high of 90.03. Today, The Industrial Production expected unchanged at 1.4%

USD/JPY-Last: 89.82

Resistance

90.20

90.40

90.60

Support

89.70

89.48

89.30

Canadian dollar (CAD)

Canada’s Dollar rose to the strongest level against its U.S. counterpart since Oct. 22, after reports in China showed the economy is advancing, spurring stock and commodity gains. Overall, USD/CAD traded with a low of 1.0430 and with a high of 1.0502. Today, The New Housing Price Index (NHPI) expected at 0.2% vs. 0.1% previously.

USD/CAD – Last: 1.0433

Resistance

1.0500

1.0545

1.0600

Support

1.0435

1.0405

1.0375

Research by http://www.ufxbank.com

Charts, Forex trading tools | Tags: , , , , ,

Should One Use the Free forex Charts?

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November 12, 2009 at 8:58 am

The idea of using the forex charts is incredibly significant to operate the transactions of foreign exchange. Such kind of tool is important to identify the technical signals and evaluation of the currencies thus becomes easier. It is based on the forex charts that you use. They should be able to foresee the market movements along with the possible future trends. All the different courses available to educate people on brokerage do emphasize on the analysis of the forex charts. If you are thinking of starting a forex trade, you too can start off by making use of the various free forex charts in order to deepen your knowledge about the forex market.
The presence of numerous pairs of currencies can be spotted out on the free forex charts professionally. However, complicated tools can be understood by skilled professionals only as they remain nothing than a mystery to the novice traders. Based on your needs, you can zoom in the various segments of the free forex charts or you can even select to alternate the types of the charts in order to enhance your observational aim. The research that you make on these free forex charts can be saved or they can form a basis for your observational hobby and hence, become a commencing point to generate your own individual and unique system.
There are free forex charts that are available in the form of flash and they do offer live informational feeds with immediate details about the currency crosses. The trader can eve prefer to add distinct signals which are not there in the readymade format like the Bollinger bands, price oscillator and envelopes. One can observe these charts according to the time period that is being defined based on the personal needs. It is always better to move from simple to complicated ones if you wish to get some trading and knowledge in forex business.
However, remember it is a bit risky to make use of these free forex charts in your day trading prices. The money that you might lose here may be considerable because you are only a beginner or new to the trade. The ideal method to give a good start to your apprenticeship is to have knowledge about the long term trends and the fluctuating trends. This will create an essence that needs to be followed in most of the free forex charts.
As in any kind of trade, one needs to follow a high amount of discipline and should be patient. A patient as well as disciplined trader is aware of the fact that the biggest potential for the profits lays in the longer term trends of the trade. Then select simple charts as they are quite easy to evaluate, follow and recognize.

Charts, Forex trading tools | Tags: , , , ,

Watch your Profits Increase with Forex Charts

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November 12, 2009 at 8:57 am

If you in case make use of forex charts and technical analysis, then use the simple grouping suggested below. It will assist you in catching hold of the bigger trends that you produce higher profits and make them rise day by day. Let us have a look at this grouping on forex charts and how to transfer it into profits. We will be considering three steps that any person can use in their forex strategy to make it more successive.

  • The Weekly trend- only some forex traders observe the weekly forex charts. However, these are the charts that show the long term trends and separate them effectively. Hence you can have a look at the significant trends. While you are viewing the weekly forex charts, you should also have a look on the valid resistance and support. These are the important considerations of the market.
  • The Daily chart-  consider the above mentioned points in order to be in synchronization with this daily forex chart so that the similar significant levels of price do line up on both of these charts.
  • Getting confirmation- the best possible method to observe if a break would reverse or keep on continuing is to observe the price momentum. There are a number of momentum signals to observe at, but the tow most important ones are the Stochastic and the Relative strength Index (RSI).

Keep on watching for an increasing RSI as well as the stochastic lines that points towards the direction of a break, if in case they do cross over with the bearish or bullish divergence. If you are not aware about how to make use of these signals, then you should learn to, as these are the crucial aspects of your forex trade as well as forex education. They are quite easy and simple to learn.

You can indeed generate great profits from these bigger moves if you do follow the above explained tips precisely. These big moves do not occur frequently, but only few times in a year. However, these are the only trends that will help you in making highest profits along with fewer risks. Traders fail to do this and hence, fail to win.

There are traders who do not like to purchase breakouts because they feel that they have been missing the starting of the move and hence keep on waiting for the pullback to fetch a good price. However, on the valid breaks prices move very randomly and you need to be alert because these prices will not come back instantly and you won’t get a good price.

If you can buy or sell breakouts, keep in mind they normally pile up big profits so the fact you have missed a little bit of the initial move is fine there is plenty more to come and of course it is missing this bit that gives you the odds in your favor. See your profits rise instantly and with a higher rate if you apply these techniques in your trading methodologies. You will hence make great currency trading success rapidly.

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