November 27, 2009 at 10:02 am
USD Dollar (USD)
The Dollar climbed against all majors after Dubai’s attempt to reschedule its debt by 6 month caused Europe Stocks to drop heavily and spurred investors to seek the safety of assets perceived as lower risk. Stocks market in U.S were close due to the Thanksgiving holiday. Crude oil fell by 3% closing at 76.2$ a barrel. Gold (XAU) closed almost unchanged at 1191.85 $ an ounce but dropped during Asia session falling back to 1170$ levels. No economic data expected today.
EURO (EUR)
The Euro fell against the Dollar following the collapse of stock markets in Europe as a result of Dubai’s debt rescheduling. EUR/USD pair traded with a low of 1.4959 and with a high of 1.5141. Loans to Euro zone households and firms fell in October for the second month in a row, coming at 0.3% vs. 0.7% forecast. No important data expected today.
EUR/USD – Last: 1.4945
|
Resistance
|
1.5020
|
1.5100
|
1.5144
|
|
Support
|
1.4913
|
1.4830
|
1.4800
|
British Pound (GBP)
The Pound fell versus the Dollar as stocks declined and a proposal by Dubai to delay debt payments prompted investors to seek what they perceive to be safer securities. Overall, GBP/USD traded with a low of 1.6466 and with a high of 1.6725. CBI Realized Sales came out at 13 vs. 12 forecast.
GBP/USD – Last: 1.6406
|
Resistance
|
1.6530
|
1.6648
|
1.6720
|
|
Support
|
1.6376
|
|
|
Japanese Yen (JPY)
The Yen rallied to a 14-year high against the Dollar, climbing past the 85.00 level, on speculation Japanese monetary authorities will tolerate further appreciation of the currency. Overall, USD/JPY traded with a low of 84.81 and with a high of 87.48. Tokyo Core CPI came out better than expected at -1.9% vs. -2% forecast.
USD/JPY-Last: 86.37
|
Resistance
|
87.00
|
87.70
|
88.62
|
|
Support
|
85.80
|
85.00
|
|
Canadian dollar (CAD)
The Canadian Dollar weakened against its U.S. counterpart by the most in almost four weeks as Dubai’s plan to reschedule its debt spurred a sell-off in crude oil, gold and equities. Overall, USD/CAD traded with a low of 1.0450 and with a high of 1.0620.Today, Current Account is expected at -12.9B vs. -11.2B prior.
CAD/USD – Last: 1.0626
|
Resistance
|
1.0641
|
1.0719
|
|
|
Support
|
1.0587
|
1.0530
|
1.0450
|
Research by http://www.ufxbank.com
November 27, 2009 at 8:30 am
There are a number of factors affecting forex trading. Hence, it is important to know these factors that are making forex a fluctuating Markey every day. The forex market keeps on changing and this is based on the various economic factors that play a vital role in the currency movements.
Economic signals and factors are generally released by the private institutions or the government who look into depth of the economic performances. These signals are basically used for analyzing the economic performance of any country. These reports keep a measure of the economic health of a country, currency events as well as the governmental policies.
Furthermore, a forex trading broker can take into consideration the economic signals and understand which trade would be the best one. The reports based on these signals are released at fixed times and they can inform you whether a particular country will experience improvement in its economical infrastructure. Whenever the rates are fluctuating, the prices are firstly affected in a great way.
The recent events or the economy’s state in any nation is the best economic signal that is useful to analyze the forex market. Some elements like housing statistics, unemployment numbers and the recent condition of a country’s government all can have a great effect on forex. Whenever there is a country that is feeling cheerful regarding the recent condition of their economic state of the country, the rates of forex do reflect it, if a nation faces political unrest, big amount of unemployment as well as inflation. Many a times, this signal has a tendency to be overlooked, however, it can offer as an essential gauge in the volatility of the forex market.
The GDP (Gross Domestic Product) is another economic signal that is being used while you observe the forex market. It is the broadest as well as widest measure of economy in a particular country. It signifies the entire market value of all the products that are generally generated in any particular country. It is measured in terms of time frame of a year and not in months or weeks. Making use of a bigger time frame provides a better statistical result on the products that are manufactured in the country. This signal is never used alone while predicting forex.
Another best signal in forex market is the industrial production report. It represents the modifications in the manufacturing in any industry like utilities, factories, etc. the report appears like actual production is association to the production limit over a particular period of time. If a country is generating at a maximum limit, it is going to affect forex positively and will be regarded as an ideal condition for the forex traders or investors.
Make use of these signals precisely to understand and benefit from forex trading.
November 27, 2009 at 8:28 am
In this Article let us focus on what is forex technical analysis and what are some of the significant signals. It is generally said that the wealthy traders make use of technical analysis, however, all the technical analysis traders are not supposed to be wealthy. No doubt to say that technical analysis is the best way to trade the forex market. It is important indicator whether the rates will move in the upwards direction or the downward ones. It offers you a rim over the other forex traders.
There are some facts or reason that has made this forex technical analysis a very powerful tool. Let us have a look on it:
• It signifies numbers. All the data and its effect on the forex market as well the traders are generally stated in the currency’s price.
• Some of the chart patterns are found to be reliable, consistent and repeating by themselves. Technical analysis allows a person to observe them.
• It aids in foreseeing the trends because the forex market, as such is quite trendy.
The trends in the market help you in becoming aware of the entire market direction and frequently rescue the public from less profitable points of entry. One needs to be highly disciplined and have a higher control over their emotions while trading as such. You need to stay tuned up with the trend and keep on following the price.
Try to find the rate of the given pair of currency. If the USD/ EUR is 1.4224 and it rises to about 1.4180 to 1.4090, then one would definitely say that the market is down trend. Try to concern only with the forex market in terms of what is it doing and what it cannot do? Listen carefully to the market trends and the signals will immediately support what they are informing you.
There is moving average, as well. They do inform the prices at a particular pint over a fixed period of intervals. They are referred to as moving as they offer you the recent prices when you calculate the average depending on the selected time measure.
They only lag is the forex market, so in order to indicate you of any changes in a particular trend, you are supposed to make use of a short average like five or ten days moving average. If you merge the long term and short term moving average, you will be able to find out a purchase indicator while the short term crosses long term moving average.
There are also simple averages that offer more significance to the current prices. It features all the rates in a fixed time span however, its focus remains on the most current price alterations. MACD is also dependent on the moving averages.