Online Currency Trading Blog

GoLearnForex Analysis 9/11/2009

Daily Technical Analysis By GoLearnForex

USD/JPY:

The Dollar Yen has been relatively volatile as of late.  On the chart below there are levels of support and resistance indicated by the bright green

horizontal lines.  We have now tested 89.90 twice on the close.

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Additionally, the 50 day MA is closing in on that level.  If an entire candle sits above the 50 Day MA then we would expect price to move towards the next resistance level at 92.00.  However, if the price closes below 89.90 then we would expect a further drop to the next level of support at 88.00.

Lastly, one additional chart to look at is the correlation between the DXY (which is an indexed weight of the dollar, based on a basket of currencies) versus the Yen.  What you see since April is that as the DXY has depreciated the JPY has appreciated. If you have a negative dollar bias than you will want to go Long the Yen as we approach S&R.

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USD/CAD

The Canadian Dollar is in a very vulnerable position at this juncture.  Fundamentally, the CAD has come under pressure from its own Central Bank as well as recent poor economic data.  It completely retraced its mover lower towards Dollar parity.

I looked at the CAD over a number of different tenors from a 4 hour to a Daily to a Weekly.  On each of those charts there were technical indications that the CAD maybe in trouble.  I will focus on the weekly chart, although I do not trade from a weekly but rather use it for confirmation of trends.

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Based on the chart above there are 3 points that get my attention even before we look at any additional oscillators or indicators or the like.  1) The red rectangular box shows levels congestion or S&R for the CAD. 2) The red lines that make up  the ‘v’ shows a complete retrace of the previous move 3) In the square red box you have a “Hammer” shaped candle (although it more so resembles a mallet).  A trader who purely uses candles would have closed out his Long CAD position after the formation of the Hammer on a weekly chart.

Looking at the daily chart the CAD is also closing in on the 50 day MA.  It is very possible that on poorer than expected economic news from Canada or a firmed greenback that the CAD will touch 1.10 this week.

G-20 Decides Economic Stimulus Will Continue By GoLearnForex

Equity Futures are mostly negative tonight suggesting a slightly lower open.  This weekend saw the board of governors from the G-20 assemble.  Although a number of important topics were discussed there was agreement amongst the board that economic stimulus should not be removed until further signs of a steadied economy are present.

We closed out last week with a bang as U.S Unemployment printed worse than expected to 10.2%.  This obviously concerns investors that if unemployment does not at least bottom it could derail the already fragile economic recovery.

There was a slightly quieter week this week on the data front.  We will be watching the Canadian Housing Starts for October.  Although we do not expect any surprises here, nonetheless the CAD is quite volatile these days.

Upcoming Forex Events for November 9, 2009

CAD Housing Starts  Forecast    155.00K    Previous  150.00K

JPY Bank Lending (YoY)  Previous   1.60%

GBP RICS House Price Balance  Forecast    29.00%    Previous  22.00%

AUD NAB Business Confidence       Previous  14.00

Analysis by http://www.golearnforex.net

Tags: daily forex analysis, forex analysis

Benefits of online Forex software

Forex or the Foreign exchange market is essentially the currency exchange against foreign currencies. Someway or the other, we all experience currency exchange. When we travel to other countries, we exchange our native currency with that of the particular country’s currency. But at the bank, you will discover that there is a significant difference between the rates at which we buy the currency and the rate at which we exchange it for foreign currency. While purchasing goods from foreign countries online, we often need to come across currency exchange. Sometime back, the British pound was equal to almost 2 dollars but now it is considerably low by 20 %. So, now we know that purchasing in dollars is considerably expensive.

In case of oversees business trading, the business dealers have to pay in the currency of the exporter and there is a significant difference in the rate of the purchase and the rate at which the bill is later cleared. There is always an exchange rate profit or loss account set up in the accounts of such businesses.

A large amount of money is exchanged with foreign companies every year. The time of exchange has a significant effect on the balance sheet of the company determining the overall profit and loss. For example, those who were engaged in some financial way to the US during the 9/11 attacks, suffered a loss as the attack resulted in the liquidation of several companies. After such trading, the profit will be zero. In these cases, the prices of the base currency will not reach the value of the quoted currency.

The question is where does the huge amount of currency exchange come from? The answer is commercial and investment banks on which the investors rely for the currency. The Government and the central banks are indulged in currency exchange. This was primarily the cause of the Great Depression in 1929 which is popularly known as the Wall Street Crash.

A lot of effort goes into the determination of the currency exchange rates that are determined by the currency exchange market. There area number of important factors that comes into play while determining this. These are interest rates, unemployment, terror attacks and many more. These factors are kept in mind while determining the currency exchange rates for foreign countries.

Forex market largely depends on the right Forex broker for the right deal. Other factors that determine the price of the market are the supply and the demand. If you intend to come in Forex business, do not worry about rivals or competitions. All you need is a good strategy and business mind to earn maximum money through Forex market. Our articles are here to help you out with the essentialities of Forex business.

Tags: automated trading software, forex market, forex trading, Trading software

Need Of Forex Trade Software

Since when the technology has advanced, there has been a rising need for checking such developments in case of Forex trade. The computers have proved a great help in order to establish them in the foreign currency trade market or the Forex trade. It tries to abolish the calculation done manually and so it can be said that the software version of learning this trading is quite helpful. The second wave was in the early 2000s: several software companies entered the retail Forex market by launching their own versions of trading platforms. Typically these versions were cumbersome for both front-end users (retail traders) and back-end users (retail brokers) due to the misunderstanding of the developers about the Forex market and also because of the insufficient programming tools/languages at the time. Simultaneously most of the retail brokers kept using and developing their own systems as they waited for better platforms which were yet to be developed.

There are currently few to no brokers which were part of the first wave trading systems. By now most of the first wave brokers have either vanished, merged or progressed to the second wave trading platforms – the most common example of which is Metaquotes. It is only in the last couple of years that the advanced trading platforms started to emerge. These platforms put much stronger emphasis on the user interface (GUI) making it more accessible to the retail traders while making trading on it very simple and intuitive. Moreover a very strong emphasis was put on the back-end which allowed the retail brokers better control over their operations, better reporting and accurate system and ways to manage marketing campaigns.

Gradually this wave is replacing the previous second wave with a major shift now to the friendlier and more intuitive systems of the third wave which according to Aite Group are necessary in order to maintain growth. Serious practices of the trade should be done in order to avoid any risks which are disastrous to the newcomers of the market.Forex Strategy Builder is a visual forex strategy back tester. It uses combinations of technical indicators and logic rules to simulate a trading process with historical forex rates. An included automatic strategy generator enables you to compose a profitable strategy. An optimizer, an intraday scanner, a bar explorer and an interpolation methods comparator are included to improve the quality of your forex strategy development. Custom indicators, multicurrency strategies and out of sample testing capabilities are also included in this free forex software. Thus, it can be said that the forex trade software is very technical in nature.

The mistakes done manually can also be corrected so that the software provides the user friendly atmosphere.

Tags: automated trading software, best trading software, forex market, forex trading software, Trading software