Posted by admin
| Tags: Inflation, Risk Aversion | Categories: Economic Factor, Fundamental Analysis |
Sterling Falls To A Nine Month Low As The Euro Zone’s Debt Worries Investors
The British pound fell to nine month low against the dollar as concerns over euro zone sovereign debt problems boosted the appeal of the greenback as a safe haven currency. Worries about debt problems in the euro zone have extended beyond Greece to Spain and Portugal, hitting riskier assets, with sterling falling in tandem with the euro against the greenback. Last week producer prices data showed further upward pressure on UK inflation, with British manufacturers raw material costs up more than expected last month and continuing to rise at their sharpest annual rate since October 2008. Traders said position adjustment ahead of the weekend accelerated selling of the pound, which has lost close to 2 percent against the dollar this week. The GBP/USD is currently trading at $1.5570 as of 7:14am, GMT, with a bullish trend.
The euro continued to fall this week against the dollar on speculation widening budget deficits in European nations such as Greece and Portugal will deter investors from buying the region’s assets. ‘As sovereign risks spread in the euro-zone, risk aversion will continue in the market,’ said Susumu Kato, chief economist in Tokyo at Credit Agricole Securities, a unit of France’s Credit Agricole SA. ‘Implications of the financial issues remain unclear, which has weighed heavily on the euro.’ Continue reading Forex Market – Fundamental Outlook »
Posted by admin
| Tags: daily technical analysis, resistance, support | Categories: Day Trading, Forex, Support and Resistance, Technical Analysis |
Daily Technical Analysis
EURUSD Outlook
The EURUSD attempted to push lower on Friday, bottomed at 1.3585 but closed higher at 1.3664, formed a hammer candlestick formation on daily chart indicating potential upside correction testing 1.3750 resistance area, but overall the bearish scenario should remains intact as long as price move inside the bearish channel and I still prefer to sell on rallies. Break above 1.3750 area could trigger further bullish correction back towards 1.3850 even 1.4030 area. Initial support at 1.3585 (Friday’s low). Break below that area should trigger further bearish momentum with technical target around 1.3490 – 1.3400 area this week.
Posted by admin
| Tags: swing trading, swing trading indicators | Categories: Forex, Technical Analysis, Technical Indicator |
By Malika Sharma
Swing Trading indicators are what the professional traders use. Indicators support the professional traders on their decision making technique. The banks and the professional traders use the indicators to the maximum achieving better results. The stock charts need to be well described through the use of indicators. Generally, an indicator perfectly complements the stock charts. Try to be careful while placing a large number of indicators on a single stock chart as it might result into complicated charts to read and analyse. Some of the indicators which are usually used by the traders are namely moving averages, stochastic indicator, and relative strength indicator.
Moving averages are considered to be the most traditional and widely accepted type of an indicator. They are preferred as they easily help in identifying the trends. The professionals of the trading industry want to have a view of the trends for the long terms. This could be best viewed by using 150 and 200 moving averages. These type of moving averages are normally used when you are about to place an indicator on the stock chart. Identifying the trends is one of the purposes of the moving averages while the other reason is to have a brief knowledge about support and resistance areas.
Continue reading Swing Trading Indicators to Get More Knowledge »
Posted by admin
| Tags: Dollar Index, forex fundamental outlook, nonfarm payrolls, Unemployment Rate | Categories: Uncategorized |
The dollar rose on Friday for a third consecutive day, pressuring stocks and commodity prices for a third day. US nonfarm payrolls declined a modest 20K in January with the unemployment rate falling to 9.7%. The S&P 500 gained 3.08 to 1,066.19 and erased earlier large losses as US consumer credit declined less than forecast and support at 1050 held. The yen fell versus the dollar but rose against most other key currencies on carry trade unwinding. The euro declined amid ongoing concerns about the fiscal stability in the PIGS countries and concern that efforts by Greece, Portugal and Spain to reduce their deficits will hurt the fragile economic recovery. Sterling fell despite higher-than-expected producer-price inflation. The oversold Australian and Canadian dollars rose. The Canadian dollar was supported by an unexpected drop in Canada’s unemployment rate and stronger-than-expected employment growth. The Swiss National Bank reportedly intervened in the FX market to prevent the Swiss franc from further appreciation against the euro after the EUR/CHF fell to the lowest level since October 2008.
The dollar index rose for a third straight day and touched the highest level since July 9. The appreciating dollar is increasing deflationary pressures, depreciating risky assets and may end the US/global fragile economic recovery. The dollar index rose about 9% since the beginning of December. There are support in the 79-area and important resistance at the 81 area. We expect a consolidation between the support and resistance.
Posted by admin
| Tags: automated trading, cfd, day trading system, Forex, futures, stop loss, tradeonauto, trading plan | Categories: Day Trading, Forex, Money Management, Trading System |
By D Bennett
A trading plan gives a day trader points of reference as market action unfolds quickly in real time. It enables them to always know what to do next, and how to do it. Specifically the plan should answer four key questions.
1. When should a trade by opened?
You must specify some trigger which will signal you to take a trade, for example: (i) Buy if price moves down to a key support level or penetrates a resistance level. (ii) Sell if a "fast" moving average crosses below a "slower" one. (iii) Buy if an expected news item meets some specific criterion. The trigger must be clear, unambiguous and easily determined in the heat of battle. When the trigger is detected, you act.
2. How large should the trade be?
A signal to buy or sell is not enough unless you also know what size investment to make. In futures trading, this means knowing how many contracts to buy or sell. There are various strategies you might choose. For example: (i) Always trade the same number of contracts. (ii) Identify where the initial stop loss order is placed, calculate the level of risk per contract, and divide this into the highest level of acceptable risk per trade to find the number of contracts to trade.
It is very easy to get this wrong and find yourself carrying too much risk, or missing opportunities by being in too small a position. Trading with the right position size is possible the factor which makes the greatest contribution to the ultimate success or failure of the trader.
Continue reading Four Questions Your Trading Plan Should Answer »
Posted by admin
| Tags: nonfarm payrolls, resistance, support, technical outlook | Categories: Forex, Fundamental Analysis, Support and Resistance, Technical Analysis |
USD Higher, US Unemployment Rate Drops to 9.7%
- USD: Higher, unemployment rate posts an unexpected decline, nonfarm payrolls below expectation
- JPY: Lower, Toyotas CEO says the company is in crisis, risk recovers on better US employment report
- EUR: Lower, concern about EU fiscal troubles
- GBP: Lower, producer prices rise more than expected
- CAD and AUD: AUD lower & CAD higher, Canada’s unemployment rate drops jobs, growth rises by 43k
Overview
US January headline unemployment posted an unexpected decline to 9.7% from 10% last month and nonfarm payrolls dropped by 20k. The average workweek increased to 33.3 hours from 33.2. 8.4mln jobs have been lost since the start of the recession in December 2007 compared to the 7.2mln originally reported by the Labor Department. The number of long-term unemployed rose to 6.3mln. December nonfarm payrolls were revised to -150k from -85k, October nonfarm payrolls revised to -224k from -127 and November nonfarm payrolls were revised up 64k from up 4k. The US economy continues to shed goods producing and construction jobs with jobs increasing in services and retail. Government hiring down slightly. The USD initially pared overseas gains and the JPY traded lower after the release of better than expected US headline unemployment. USD resumed its rally as US equities traded lower and the unemployment report failed to lift market gloom. Despite the drop in headline unemployment the US still shed 20,000 jobs last month and the data failed to boost risk appetite.
Ahead of today’s release of US January unemployment the USD traded higher with the EUR trading at an eight month low. USD is supported by a spike in risk aversion sparked by concern about debt troubles in Europe and worries about the global recovery. European credit default spreads continued to widen. Expanding EU budget deficits are seen as a threat to the European recovery. Recent tightening of lending conditions in China generates concern about the global recovery. Risk aversion is the major driving factor for the financial markets and Forex trade. Report of a sharp decline in German industrial output adds to negative sentiment towards the EUR. EUR down side was limited by report of SNB intervention. The SNB is rumored to have intervened as the EUR/CHF cross traded at a 15 month low. GBP traded lower with downside limited by report of higher than expected producer prices in January. Commodity currencies traded mixed pressured by the spike in risk aversion with CAD downside was limited by report of an unexpected drop in Canada’s unemployment rate and stronger than expected jobs growth for Canada in January. The trade will continue to monitor the direction of equities to gauge risk sentiment with focus on EU response to the debt crisis. Continue reading Forex Market Update – US Unemployment Rate Drops to 9.7% »
Posted by admin
| Tags: bearish momentum, daily technical analysis, forex technical analysis, resistance, support | Categories: Forex, Support and Resistance, Technical Analysis |
Daily Technical Analysis
EURUSD
The EURUSD had a significant bearish momentum yesterday, break below 1.3750 key support area, bottomed and closed at 1.3723. This fact should lead us to further bearish scenario towards 1.3490 area. The bias is bearish in nearest term targeting 1.3580 area. Immediate resistance at 1.3750 – 1.3800 area. Break above that area should lead us into no trading zone but I prefer a bearish scenario at this phase with sell on rallies strategy as the bearish momentum seems very strong at this phase.
On fundamental side, we will have US NFP data today, which is expected at 10K. If the actual number is at least the same or even better than expected, the Euro should keep under heavy pressure. On the other hand, a worse than expected result may give some support to the Euro but overall the Dollar should still has the advantage as risk aversion seems to increase as stocks and gold are heading lower while Greenback strengthen
Posted by admin
| Tags: fx technical commentary, resistance, support | Categories: Day Trading, Forex, Support and Resistance, Technical Analysis |
Euro 1.3730
Initial support at 1.3584 (May 20 low) followed by 1.3485 (61.8% retrace of 1.2459 to 1.5144). Initial resistance is now located at 1.3903 (Feb 4 high) followed by 1.4026 (Feb 3 high)
Yen 89.25
Initial support is located at 89.00 (big figure) followed by 88.50 (Feb 4 low). Initial resistance is now at 90 (key level) followed by 91.28 (Feb 3 high).
Pound 1.5760
Initial support at 1.5708 (Oct 13 low) followed by 1.5517 (May 21 low). Initial resistance is now at 1.5918 (Feb 4) followed by 1.6069 (Feb 3 high).
Australian Dollar 0.8675
Initial support at 0.8647 (Oct 5 low) followed by the 0.8570 (Oct 2 low). Initial resistance is now at 0.8826 (Feb 4 high) followed by 0.8928 (Feb 2 high). Continue reading FX Technical Commentary »
FX Technical Commentary
Posted by admin | Tags: fx technical commentary, resistance, support | Categories: Day Trading, Forex, Support and Resistance, Technical Analysis | No CommentsEuro 1.3730
Initial support at 1.3584 (May 20 low) followed by 1.3485 (61.8% retrace of 1.2459 to 1.5144). Initial resistance is now located at 1.3903 (Feb 4 high) followed by 1.4026 (Feb 3 high)
Yen 89.25
Initial support is located at 89.00 (big figure) followed by 88.50 (Feb 4 low). Initial resistance is now at 90 (key level) followed by 91.28 (Feb 3 high).
Pound 1.5760
Initial support at 1.5708 (Oct 13 low) followed by 1.5517 (May 21 low). Initial resistance is now at 1.5918 (Feb 4) followed by 1.6069 (Feb 3 high).
Australian Dollar 0.8675
Initial support at 0.8647 (Oct 5 low) followed by the 0.8570 (Oct 2 low). Initial resistance is now at 0.8826 (Feb 4 high) followed by 0.8928 (Feb 2 high). Continue reading FX Technical Commentary »