forex blog
Lows and highs Forex trades seeking skies
Today the events that are lined up include along with the last figure and the expected output are displayed below:
The reports are indicating mixed response, with negative trade impression outraged the positive trading aspects, US equities were flattened at the Forex trading platform and endangered currencies are weaker. The economic date releases are likely to pack the whole day in US with the figures throwing light on the improvement of the jobless claims later shut off by a sink in awaiting home sales reports.
The efforts of Central Bank failed to extract much response, BOE maintained to hold at 0.5% without commentary and the ECB also heading with 1.0%. The S&P 500 current position is at 1.0% up at the Forex market with commodity index CRB crawling down 1.2% including oil at -1.1%, gold at -0.7% and copper at -2.1%.
US treasuries current position is flattered down with respect to the present key payrolls report. USD trading bit stronger than the DXY index having bouncy trade from 80.00 to 80.65 with EUR declined from 1.3650-1.3700 trade zone and currently trading at 1.3550, USD/JPY hiked up strongly as the response on Fannie Mae anecdote suggesting that it is trading above 88.20 to 89.20 with the formation of bullish reversal trend at the Forex market.
AUD on the other hand having strong volatility at the Forex trade and attempt many times to break below the level of 0.8980 after reaching the level of 0.9040. While NZD continued to perform poor as breaking the support level of 1.6860 area and AUD/NZD traced a fresh high of the decade with the trading area of 1.3126 and continued to hold its gains.
Overall, the whole trading set up is indicating that the USDJPY heading towards bullish reversal trend with resistance area around 89.30, AUDUSD attempting to break the level of 0.9040 but failed, EURUSD trailing with rejection in bearish trend with finding support at the retracement level of 1.3550 picking the interesting trade level of 0.618 Fibo retracement level from the level of 1.3500 lows to yesterday highs of 1.3736.
Rest all depends on the outcome of the data releases of today.
The USD and the JPY – two “safe haven currencies”
Last week were published at the US positive reports concerning corporate earnings (among them considerable profits gained by the giant 3M), along with positive home sales data. Consequently to these good news, the stock market rose significantly and the dollar gained broadly in a hectic forex trading day last Thursday.
The fact that the dollar raised along with the stock markets is a rather surprising one, since it is considered as a “safe haven currency” preferred by Forex traders and investors at times were the market is volatile (personally, I find a bit odd the fact that the USD adopts at most time a tendency opposite to the general stock market mood).
In any case, last Thursday the dollar raised along with the stock market which is an interesting change. let’s wait and see if this new symptom will became a new trend…
From his side, the Japanese Yen behaved last week as a traditional “safe haven currency”… i.e., it went down as consequence of the new positive data regarding corporate earnings and home sales at the US. from its part, the Yen is expected to have some relatively tight range in view of the elections that will take place in August 2009 in Japan. Let’s all remember that a climax of political uncertainty always affects the currency trading markets.
My personal advice, as always, is to keep being updated about all the financial and political events so to have an idea of the general trend of main currencies and, at the same time, keep track after new tendencies or potential patterns of specific currencies. The relatively new phenomena of the dollar raising along the stock market, let’s see whether this is becoming a regular thing or punctual.
Let’s remember that trading at the forex market requests keeping informed at all times about financial and political events, it is not a speculative activity that occurs on a void, or a gambling activity based on pure luck…
Trading Forex? go get the info
When trading at the Forex market, the key factor is being updated.
Many people believe that in order to succeed in forex you should be able to PREDICT. As a matter of fact, one of the attractive sides of this sector is that, in contrast to pure luck activities like gambling, at the forex market you are required to master additional skills, such as knowledge of the market and being updated on the latest financial and economic events and developments (and of course – being able to analyze it’s emphasis).
Forex cannot be based on predictions and pure luck, we are not talking here about tarot reading or gambling – this is a complex field that is nurtured by a huge amount of data and factors that are in constant change and are influenced by geographical events in the whole world since the marked is, as a matter of fact, a kind of “universal” market, without geographical or physical boundaries.
Just to let you know, the Forex online trading is active 24 hours a day, 7 days per week and it envolves huge huge sums of money every day, equivalent to 3 trillion dollars…
If you want to win in Forex, the best you can do is, as said, to keep yourself updated at all times in the most exhaustive way that you can… (today that should not be a problem, having in mind the huge amount of sites, blogs, Forex guide, newspapers, financial and economic Internet spaces). It is no chance that most forex agencies and online forex sites provide their traders a service of updated foreign exchange newsletters and updates around the clock.
On the other hand, many are the people who believe forex is a kind of “science” that behaves according to scientific laws, i.e., fundamental analysis, Fibonacci, Elliot and Gann theories… the forex e-books, tutorials and manuals are full of those… What can I say, don’t believe the trading in foreign exchange is an exact science either (as i wrote in my previous post)… as I see it, the truth remains in the middle somewhere, and the KEY is information, information and more information!