Archive for November 10th, 2009
Why is it important to select the best forex trading platform?
Foreign exchange market is considered to be the most lucrative market as compared to all the other markets across the globe. Forex market has been successful in making futures of a lot of people. But then it is important that the trader before testing his fortune has some knowledge about the foreign exchange market. It is important that the trader knows about the different forex trading platforms available to him for trading in the forex market. Trading into the forex market involves buying and selling of currencies or currency pairs. The difference between these exchange rates can be the profits earned by these traders.
Having the knowledge about the forex market will help you trade and make higher profits in this currency trading. If you feel that you can dedicate a lot of time to this market and still want to make good profits then you should see that you hire a good forex broker. Check whether the broker you select is a reliable one or not. Also check whether he is registered with at least one of the regulatory agencies. This is because service hired and the other forex systems purchased are considered to be secure only if they are obtained from the correct source.
The forex trading platform and services that is user friendly and easy to use are considered to be the most feasible ones. The forex trading platforms are most of the times also referred to as best forex robots. These forex trading robots can be very helpful in earning higher profits in the forex market. Apart from this these forex trading systems educate you on all the different ways in achieving profits. But then see to it that you select the one that is authenticated. For this expert or professional advice can also be taken.
One another option available to the trader for selecting a good forex trading platform is researching on the internet. The online forex trading platforms have improved a lot because there have been a lot of technological advancements in the recent times. These online trading platforms are accessible by all and are also easily available on the internet. But then before selecting any kind of an online forex trading platform make sure that you go through the reviews and the comments given by those who have already been using it and the experts. Even after this it becomes very difficult to select from the best ones.
The information available on each of the trading platform online is very helpful and can be trusted upon because it is updated regularly and also given out by the professionals and experts of the forex market. Thus, if you wish to earn huge with forex trade then see to it that you select the best forex trading platform.
Daily Review 10/11/2009
USD Dollar (USD)
The Dollar fell to a 15 month low against the currencies of major U.S. trading partners after G20 finance officials pledged to maintain stimulus measures, encouraging investors to buy higher-yielding assets. NASDAQ and Dow Jones jumped by 1.97% and 2.03% respectively, Crude oil rose by 2.6% closing at 79.43$ a barrel , GOLD (XAU) advanced to a new record, rising by 0.5% to 1100.8$ an ounce. Today, FOMC Members Lockhart and Yellen will speak. Investors are expected to close some of their short positions on the Dollar before Veterans Day Bank holiday tomorrow.
EURO (EUR)
The Euro rose against the Dollar and the Yen after a report showed Germany’s exports climbed more than economists predicted, adding to signs the Euro\’s economy is recovering, boosting demand for higher-yielding currencies. Overall, EUR/USD traded with a low of 1.4830 and a high of 1.5020. Today, German ZEW Economic Sentiment is expected lower at 55.2 vs. 56 prior, ZEW Economic Sentiment is expected to rise from 56.9 to 58.9.
EUR/USD – Last: 1.4975
|
Resistance |
1.5012 |
|
|
|
Support |
1.4969 |
1.4914 |
1.4811 |
British Pound (GBP)
The Pound rose versus the Dollar reaching its highest level since September as Risk Appetite encouraged investors to higher yielding assets. RICS House Price Balance came out better than expected at 34% vs. 29%, BRC Retail Sales Monitor came out at 3.8% vs. 2.8% prior. All in all, GBP/USD traded with a low of 1.6590 and a high of 1.6843. Today, Trade Balance is expected to show a decline of -6.1B vs. -6.2B previously.
GBP/USD – Last: 1.6756
|
Resistance |
1.6788 |
1.6843 |
|
|
Support |
1.6734 |
1.6704 |
1.6615 |
Japanese Yen (JPY)
The Yen fell against most majors as growing risk appetite causes a flight from the safety of the Yen into higher yielding assets. Overall, USD/JPY traded with a low of 89.69 and with a high of 90.26. No major economic data expected today.
USD/JPY-Last: 89.95
|
Resistance |
90.10 |
90.26 |
90.85 |
|
Support |
89.73 |
|
|
Canadian dollar (CAD)
The Canadian Dollar gained versus the Dollar as G20\’s comments made commodity prices and demand for higher yielding assets grow. Overall, USD/CAD traded with a low of 1.0542 and a high of 1.0774. No economic data expected today.
CAD/USD – Last: 1.0570
|
Resistance |
1.0582 |
1.0681 |
1.0779 |
|
Support |
1.0542 |
|
|
Research by http://www.ufxbank.com
GoLearnForex Analysis 10/11/2009
EURUSD and Elasticity by GoLearnForex
EUR/USD:
The EUR now looks poised to continue its breach of resistance and head north to 1.5265. One of the factors that we consider when looking for technical entry and exit points is the speed at which price is moving.
Graphically speaking you can eyeball this by examining how steep a slope is or how long the bars are over a period of time relative to other bars over a similar period of time. The Relative Strength Index (RSI) is one very common momentum indicator that essentially measures the velocity of price over a period of time.
In the graph below the RSI (lower chart) is considered over bought above 70 and oversold below 30. Between 55 to 70 and the RSI moving up would be an indication of a strong trend. While the RSI headed down between 45 and 30 indicate a weak trend. Notice on the Chart that the green vertical lines highlight RSI crosses above 70 and they were subsequently followed by a retrace in price as apparent in the upper chart.
I liken this to elasticity. If you immediately pull a rubber band backwards or forwards it will shoot the opposite direction at a speed in accordance with the pressure you exerted. However, if you slowly stretch the elastic it can with stand a greater force exerted on it without the need to snap in the opposite direction. Price behaves in a similar fashion. Following most significant violent moves in the market there is usually a correction that takes place. Price was pulled to hard to fast. This has not been the case with EUR thus far which is why it has been able to use a simple moving average for support.
INSERT CHART
We have noted on several occasions that the EUR is using the 50 day MA as support for its move upwards. On November 3rd we once again bounced off of the 50 day MA support and we have also retraced the move down after breaking 1.50. This is another notable, once a psychological level, like 1.50 on the EUR, has been broken it becomes less of an obstacle to price appreciation the next go round and sometimes even acts as a spring board for price.
Gold Continues to Hold on To It’s Strong Position by GoLearnForex
Global Equity Markets rallied hard to open the week. This follows the G-20 meeting of Governors in which there was universal commitment to keep liquidity flowing until a sense of self sustaining economies return. This was preceded by the U.S. dismal Unemployment Rate print of 10.2% on Friday. In the U.S today the DJIA was up 203 points to finish the day at 10,226.
On the commodity front Gold showed no signs of letting go of its torrid rise. Intra-day high for Gold touched 1,111.20 before settling back down to 1,104 a gain of nearly $6. Oil was up as well today, gaining $1.86 to close at 79.29.
The Dollar was offered broadly across the board today. The DXY had an intra-day low below 75, but closed the day just above 75. A close below 74.85 would be a strong bear signal for the greenback and with prices at pivotal handles right now across the G-10 we could see a major dollar slide.
A lot of data due out for Tuesday and aside from CPI in the EUR zone not much is going to firm the dollar. Although we heard a lot rhetoric from Central Banks last time FX markets were at these levels in attempt to slow the Dollar slide, I do not think CB’s will flood the market with strong dollar talk this time around.
Upcoming Forex Events for November 10, 2009
EUR German CPI (MoM) Actual 0.10% Forecast 0.10% Previous 0.10%
GBP Trade Balance Forecast -6.20B Previous -6.20B
EUR German ZEW Economic Sentiment Forecast 55.00 Previous 56.00
AUD Westpac Consumer Sentiment Previous 1.70%
nalysis by http://www.golearnforex.net
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