For second straight day, the euro traded versus the dollar with small difference between the high and low points, as the EUR/USD forex pair traded between 1.2966 and 1.3042. The British pound also remained nearly unchanged against the dollar. The GBP/USD pair posted a high of 1.5638 and a low of 1.5544. Following the drop in orders for US durable goods and the anticipated slow economic growth according to Federal Reserve, the Yen posted gains against the dollar. The USD/JPY forex pair closed at a high of 88.11 and a low of 87.25.

The pair has been  trending downwards and has made a small retracement upwards.

We want to enter the main trend which is still downwards but first wait for a confirmation the trend continues.

The entrance point is located below the last bottom the pair has made on the 4 hour chart.

More aggressive traders could try and short the pair from its current location but they should be advised the retracement upwards might continue higher and a SL of above 1.6170 is recommended for such traders.

 The RSI is near 50 in neutral territory.

SL is located above the last top the pair has made yesterday and above the 100 period moving average which is likely to act as a resistance for the pair.

TP’s are located  slightly above the support levels the pair has.

All analysis is based on the 4 hours chart.

Current rate: 1.6075

The Euro erased early losses and climbed to a six-week high against the Dollar after weakening during the day as German factory orders unexpectedly fell for the first time in five months. The EUR/USD has been trading upwards since last week and broken resistance on the daily chart at 1.2500, momentum therefore is bullish. As long as the price remains above 1.2500 a long position is preferred. Overall, EUR/USD traded with a low of 1.2553 and with a high of 1.2664.

The Pound rose for a second day as market sentiment turned positive after the U.S. stock market rallied, leading investors to buy risky assets instead. The GBP/USD has been trading upwards since June, Main resistance on the daily graph is located at 1.5260. Overall, GBP/USD traded with a low of 1.5081 and with a high of 1.5219.

The Yen strengthened against the Dollar and the Euro during the day after bad news caused investors to seek a safe haven, only to weaken on a Dollar rebound at the end of the US trading day. Overall, USD/JPY traded with a low of 87.02 and a high of 87.77.

The Canadian Dollar rose to its highest level in more than a week against the Dollar as stocks rallied and crude climbed, improving the outlook for currencies tied to growth. As long the USD/CAD stays below 1.0550 a short position is preferred. Overall, USD/CAD traded with a low of 1.0467 and a high of 1.0606.

The first type of tool of trading is known as moving averages and the second important type of tools of trading are known as momentum based indicators. These tools of trading may appear to be really very simple, but the real hard core fact is that they can prove to be really very priceless and precious to your long lasting career of trading.

Moving averages are the type of trading indicator that have been around for quite a large number of years, but this is not the reason that make them any less useful. The most efficient as well as the best movement based averages are the ones having a really very simple moving average. Most of the people think that if the will be making use of a complicated type of trading tool, then they will be able to make hand some amount of money, but believe me that’s not at all true. Simple moving average is the best available key to the lock of your success. There are quite a large number of different kinds of moving indicators, which are some times also known as MA indicators, but the basic detail that I want to give through this article is that only simple moving averages are being put in use by all these market players of large corporate such as big financial banks and funding agencies or institutes. One of the most important and the foremost use of these trading indicators by some of the professional traders of this FOREX market are to provide assistance to them so that they can identify the ongoing trend of trading.

The second most important as well as crucial type of indicator are the Momentum based indicators. They are supposed to be the second best tools that are available to any trader. These are certain necessities that should be present in the trading tool kit of each and every trader. Momentum based trading indicators are the ones that measure the momentum that is present in the particular trading market. Momentum is the characteristic that always precedes the price. This actually means that when ever these trading indicators are used properly, they are bound to make really big profits for you. Any trader can make use of these indicators.

A number of automated forex robots and forex software’s are seen on the internet. Each of these helps you in making your life a bit easy, simple and comfortable one while trading in the global currency exchange market. The forex trading podiums provide tools that help the forex traders to tune up their decisions. There, understanding these tools might be somewhat difficult or complicated. In such cases, you can take help of the forex patterns or forex charts to understand them easily.

The Japanese rice traders in the eighteenth century invested an instrument that helped them to judge the fluctuations in the rates. This became popular as a candlestick pattern. In this pattern, there was a line grasp that displayed the price that was being used. Some years later, traders made some advancement in it and they finally generated the bar chart. This bar chart demonstrated the closings, openings, highs and lows of a particular rate over a specific time span. All this was displayed in a 2-D chart pattern. This made adequate data visible on a single chart and occupied less space, as well.

Then, the candlestick chart was discovered by C. Dow in the Stock market of USA during the twentieth century. This was indeed invested as this chart pattern was visually very easy to understand. This was so as this chart had a bar graph with numerous rectangular boxes in it. A vertical line was seen above and beneath all the boxes that was named as upper wick and lower wick, respectively. Varied colors were utilized based on the market conditions to color each box. A single color was used in the chart pattern if the closing rates were greater than that of the opening ones. In case of the opposite situation, different colors were used to denote varied situations.

You might have come to know by now that how easy it is to make use of the candlestick chart. If you observe the forex chart wherein most of the candles are of the same color, then you can come to conclusion that the trend present in the market is bullish. Such kind of charts provides an instant view of the prevailing market conditions or trend. In the currency exchange market, one needs all the benefits that they can acquire in order to make their decision quicker and wiser.

However you would need the qualities of diligence, patience and discipline in order to implement this strategy successfully. In the long run, this strategy ensures good returns and takes less time to execute. Buying a currency at the moment when it is at a 4 week new high, and selling it when it is at 4 week new low is the strategy that can deliver wonders. You cannot find a strategy simpler that the one that you were notified above. Many forex traders have found this system very efficient and the strategy ahs been around for a while now.

The other alternative is that instead of selling at 4 week low, one may also try to filter the exit and then sell it in the next week, i.e. the second week. The strategy is based on certain principles. All of you are aware that the forex trading starts when the market is at a high base. You need to know that it is important to bear short term losses in order to gain in the long term. There is no foolproof way in which you can be able to avoid losses in the market.  There are many systems in the market these days that claim to be perfect, that claim to ensure that you do not make a loss.

However please understand that these systems are 100% fake. There is no foolproof solutions; just imagine if the systems are as good as they claim won’t everyone buy them and become rich?  Use simple strategies to win big.

The major advantages of using automations are that it can work without stress. A trader can be stressed when he keeps looking into the monitor for a long time. The traders need to get the right software. . In order to assist such investors, the programmers have developed various software products which would help in assisting the investors. But there is always a risk of getting ineffective or unreliable software products. Hence various aspects need to be taken into consideration to choose the right software from bogus and software that will not be useful for us.

The other major advantages are it has high security. A wide range of automated forex robots based on the internet are also available. The internet based automated forex robots are more practical. The internet based automated forex robots can be accessed in any place that has an internet connection. The growth of free wireless fidelity has been so rapid that even coffee shops and burger shops have it. This helps you to stay in touch with the forex market which helps you to plan your strategy well. The other major advantage of automated forex robots is that highly confidential information need not be stored in your personal computer or laptop which is quite vulnerable to security threats. This helps to keep all the confidential data in a safe place.

The automated robots can be classified into two types, the profitable and the non profitable. The major issue that distinguishes the profitable robot from the non profitable robot is its ability to work in different market conditions. Non profitable robots are monotonic and can work only in a single environment. The non profitable robots are designed only for this single market condition. It tends to lose a huge margin or sometimes even the whole investment when the market condition is not one in which it is programmed to be in. This causes total loss for the investor but it’s not the case with profitable robots which are capable of handling all situations. The profitable robots do not incur a loss to the investor most of the times.

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.

EUR/USD – Last: 1.4870

GBP/USD – Last: 1.6800

USD/JPY-Last: 89.17

CAD/USD – Last: 1.0535

Research by http://www.ufxbank.com

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

The progression of numerous pairs of currencies can be tracked through the forex charts. However, very complicated tools need a trained or an experienced eye, or else they do remain a mystery for the novice traders. Based on ones needs, you can zoom in the various chart segments or even prefer to select the alternate kinds of charts to maximize your purpose of observation. All the studies made on the basis of these forex charts has to be saved or they can be used for observational purposes and hence become an initiating point to create your distinct system.

There are some of the free forex charts that are made available to you in the flash format and they offer live feeds of information along with immediate details on currency crosses. You, as a user can opt to add different signals, which do not exist in a readymade format like the Envelopes, Bollinger Bands or Price Oscillator. One can observe these charts based on the time frame set by you according to your personal needs. It is always suggested to move from simple to complicated, as a proper course in order to train for better business in forex.

It is however, quite risky to make use of these free forex charts for the purpose of day trading. The loss of money here would be considerable if you are only a newbie. The ideal way to begin your apprenticeship is by learning the long term trends or the swing trade. It generates the essence that is needed to follow in a number of charts. A user who is disciplined as well as patient is aware of the fact that the bigger possibilities for profits indeed is present in these long term trends. So, it is advisable to select easy, yet simple forex charts as they are very easy for analysis, interpretation and following. This is so as these contain very few elements that need to break.

Last, but not the least, never foresee or predict s it often results in loss of money; instead it is better to make an effort to analyze, evaluate and know the odds.