Archive for November 3rd, 2009
GoLearnForex
Kiwi Declines Against USD by GoLearnForex
NZD/USD:
The Kiwi declined the most against the Greenback last week, compared to the rest of the G-10. On October 28th the RBNZ kept rates on hold. More damaging to the Kiwi were the accompanying statements from the RBNZ in which they remarked that rates would likely remain on hold through Q2 of 2010.
Six days prior to that announcement NZD struck near the prior day’s high versus the dollar at .7606. Since that day the Kiwi has been in a tail spin. The Chart below is a daily Candle chart of NZD/USD.
INSERT CHART
In the white circled area we have a Candlestick that traders refer to as a Hangman. There is a short candle body with a wick hanging down from it. When this is seen during price appreciation it may signal a possible reversal. The candles following the Hangman are lower and that could be confirmation enough to enter a short NZD position.
This pattern appearing out in front of a rate decision may have been traders signaling caution ahead of the announcement. In the end traders were correct and price has continued to decline. One last item to always keep an eye on are the daily Moving Averages. NZD is approaching a close below its 50 day MA. A close below the 50 day MA should put further pressure on the already battered NZD.
USD/CHF:
We have discussed correlations and their importance. Aside from straight technicals and fundamentals often what drives a currency might be its correlation to another instrument, product and or commodity. The Swiss Franc historically has had a very tight correlation to Gold, as one appreciates so does the other and vice versa.
INSERT CHART
The Chart below shows the price movement of GOLD and CHF. During Gold’s most recent depreciation (as depicted between the 2 blue lines), you observe the strong correlative effect one exerts on the other. What should grab our attention as Gold has resumed its strength is that the Franc has not. As a trader you should wonder if Gold is overbought or the CHF oversold? Of course keep in mind it is not a perfect correlation of 1, meaning some variation is normal.
US Markets finish the Day Slightly Ahead by GoLearnForex
In Asia, Equity Markets were down while in London and in the U.S markets finished the day slightly ahead. This is coming on the heels of a horrendous close on Friday in the U.S and CIT’s bankruptcy filing over the weekend. Equity Futures in Asia are pointing to a slightly higher open for Tuesday while London Futures are modestly lower.
The Dollar was slightly off against the G-10 mirroring the DJIA small advance today of 77 points. Oil closed today mostly unchanged while Gold soared again to 1,054. In the U.S the ISM Manufacturing figures printed smartly better than expected coming in at 55.7 versus expectations of 53. In addition, the Pending Home sales figures surprised to the upside at 6.1% against expectations of 0%.
This is a busy week for economic data releases. Due out tomorrow will be the RBA Rate decision. The current rate holds at 3.25% and market consensus is looking a quarter point hike to 3.5%. In the U.S, Factory Order numbers are set to print. A positive show will confirm today’s ISM numbers while a below consensus read will cast doubt on the durability of the ISM figures from today.
Upcoming Forex Events for November 3, 2009
GBP Construction PMI Forecast 47.20 Previous 46.70
USD Factory Orders (MoM) Forecast 1.00% Previous -0.80%
AUD AIG Services Index Previous 49.30
GBP Nationwide Consumer Confidence Forecast 72.00 Previous 71.00
Analysis by http://www.golearnforex.net
FOREX trading systems
A great trading system is like a horse to a moving cart. A really good trading investor should always possess a great trading system in order to help pull him or her along in the right face. The trading system is actually known as the traders’ matrix and trading platform in order to achieve that goal of success and it really ensures that he or she has a very cut and clear view about various aspects of the trading market and all the relevant and related technicalities before he or she makes a specific move in the market of investment. All the FOREX trading systems possess very large amount of powers. A real good FOREX system will surely be of great amount of help to even an average type of investor. The real importance of a FOREX system is to ensure that your trading profitability is really very unparallel, especially in the realm of a large number of commodities trading, one which is having so much of volatility as world currencies.
FOREX trading systems are the language that is used to translate all the relevant and necessary actions of a trading that a very good trader needs to take in order to effectively make real good money on the fronts of trading markets. A very great thing that is available about the trading system is that it acts as a sort of a trading guide that is used to warn all the traders if the move of a particular trading or a trader who is making all the investment that he or she is going to make you and all the traders against the trading market and may not get him or her that much profit or even that much losses.
Trading Systems is the one that is used to generate several trading strategies. This is a very useful thing for those particular moments when you actually want to formulate any kind of trading plans for your good future and this is the thing that gives the entire society of traders a better hold or grasp on the psychological aspects and on the behavior of the trading market. It also formulates or designs your existing strategies of trading. A good FOREX trading system is actually like your best buddy who helps you out in each and every possible way. And it is like your partner who helps you in making all the right decisions and also acts as a trading system of checks as well as balances against all the wild decisions and investments which take a negative turn.
Any good investor who wants to be very successful should always rely on a good FOREX system which can ensure him or her that all the decisions will be taken in the right direction.
Daily Review 03/11/2009
USD Dollar (USD)
The Dollar weakened versus most majors as stronger economic data raises risk demand. ISM Manufacturing PMI came out stronger with 55.7 versus 53.1 expected and Pending Home Sales came out stronger with 6.1% versus 0.3% expected and 6.4% prior. NASDAQ and Dow Jones rose by 0.20% and 0.79% respectively after a choppy trading day. Crude gained by 1.42% closing at 78.09$ a barrel and Gold (XAU) gained by 1.32% closing at 1053.4$ an ounce on stronger economic data. Today, Factory Orders are expected stronger with 1.1% versus -0.8% prior.
EURO (EUR)
The Euro gained versus the Dollar as stronger economic data led to higher risk appetite. Final Manufacturing PMI came out unchanged at 50.7 as expected. EUR/USD traded with a low of 1.4682 and with a high of 1.4844. Today, Deutsch Bundesbank President and member of the ECB Governing Council Weber will speak and might give information concerning future interest rates decisions.
EUR/USD – Last: 1.4775
|
Resistance |
1.4825 |
1.486 |
1.4925 |
|
Support |
1.473 |
1.4682 |
1.465 |
British Pound (GBP)
The Pound weakened versus the Dollar and 13 more currencies out of 16 most traded pairs as concerns about the financial sector worry investors. Manufacturing PMI unexpectedly showed expansion with 53.7 versus 50.1 expected. Overall, GBP/USD traded with a low of 1.6328 and a high of 1.6477. Today, Construction PMI will be released and is expected slightly better with 47.2 versus 46.7.
GBP/USD – Last: 1.6395
|
Resistance |
1.6435 |
1.6475 |
1.6525 |
|
Support |
1.6335 |
1.625 |
1.62 |
Japanese Yen (JPY)
The Yen weakened versus the Dollar after risk demand rose following stronger than expected housing and factory data in the U.S. Overall, USD/JPY traded with a low of 89.18 and a high of 90.69 and EUR/JPY traded with a low of 130.98 and a high of 134.51. Today, Japanese Monetary Base will be released.
USD/JPY-Last: 90.40
Research by http://www.ufxbank.com
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