Online Currency Trading Blog

GoLearn Forex Analysis 7/12/2009

Dollar Bear Ready for Hibernation? by GoLearn Forex

The Greenback has been offered across the board since March 2009.  As long as risk did not rear its ugly head investors were
selling the dollar in favor of better yielding assets.  When risk showed up at the Market’s doorstep the Dollar was right
there with it ready to regain market control.  We saw this a week and half ago when Dubai spooked the market with a needed
debt restructuring.

The pattern we have seen for the last 9 months has been  equities advancing as the dollar slides.  Equities would advance on
positive (or at least less negative) economic data. The correlation between increasingly better news and the Greenback was
therefore negative. When normal markets are in control positive news typically strengthens a currency.  What we witnessed
Friday may be an early indicator that the Dollar bear is finally ready to hibernate.

Friday brought us 2 very important prints from the U.S. The first was the Change in Nonfarm Payrolls and the Unemployment
Rate.  The Change in Nonfarm Payrolls fell by just 11k and the Unemployment Rate fell from 10.2% to 10%.  This is obviously
positive news for the U.S economy and the Global economy as well. Stock’s advanced, but this time the Greenback would not
yield any ground instead it posted gains on all its G-10 rivals.  The Dollar move was positively correlated with the
economic news, something not seen in 9 months.  There was a tangible shift in market sentiment regarding the timing of a
potential rate increase.  Originally, forecasts were  calling for an increase in Q4, however, analysts now think it may come
sooner.

It is not by coincidence that a number of pairs slid almost exactly to Support levels before firming against the Dollar.  A
breakthrough of support would most likely trigger a massive Dollar rally, something the market is not whole heartily a
believer in at this point in time.  Rather, the move on Friday was one of caution as it may be the first signal the Bull is
getting ready to run.

Let’s analyze current key technical levels and what the trading implications are:

EUR – Friday’s close put the EUR right at the 50 SMA.  The 50 SMA has been holding as support for nearly 9 months.  An
entire candle below the 50 SMA would trigger a Short EUR entry while  a quick  bounce off of support levels would trigger a
a resumption of our EUR Long

INSERT EUR CHART

AUD – Similar to the EUR, the 50 SMA has been holding firm support.  Therefore, a Short AUD  entry would be triggered
with the appearance of an entire candle below support.  We would resume a Long AUD position with a bounce off of support.

INSERT AUD CHART

GBP – The Cable has been trading the range but has not dipped below the 50 SMA since mid September at which point it
gave up over 4.5% to the Dollar.  As with the EUR and AUD, an appearance of entire candle below the 50 SMA would trigger a
Short GBP entry.

INSERT GBP CHART

Obviously one occurrence hardly represents an entire shift in trend, however, a shift in trend starts with one occurrence.
Continue to monitor the correlation between economic news and the Dollar.  In addition pay special attention to support and
resistance levels on the majors, as a breach of S&R may signal future changes and should be capitalized on.

Good News for the Greenback Finally Pushes Gold Down a Few Pegs by GoLearn Forex

Gold tumbled on Friday as better than expected Unemployment and Nonfarm Payroll figures helped prop up the Greenback.  Gold
fell 5.1% during intra-day trading to a session low of 1,150.  Crude Oil was mixed on Friday as it originally bounced higher
on the positive news, however, it gave up its gains and then some as the Dollar firmed throughout the day. Both Gold and Oil
are quoted in Dollars ,so as the Dollar strengthens it sends commodity prices lower.

Global Equity Markets advanced Friday finishing the week in positive territory.  The DJIA added 22.75 points to close at
10,388.90. At the moment Equity Futures are pointing lower ahead of the open.  Economic data releases will be on the lighter
side for Monday although the remainder of the week will yield some interesting price action as Canada, New Zealand,
Switzerland, and the U.K  are on deck for rate decisions.

The DXY soared to highs not seen since early November as the DXY touched 75.911 during the  Friday session.  Traders were
unwinding some bets and covering shorts as the positive employment data gave rise to concerns that the U.S Federal Reserve
may raise rates sooner then later.  With little economic data due out today do not expect much price action.

Important Forex Events for December 7, 2009

EUR    ECB President Trichet Speaks
CAD    Building Permits (MoM)    Forecast  1.00%    Previous  1.60%
USD    Fed Chairman Bernanke Speaks
AUD    Current Account     Forecast      -17.00B    Previous  -13.30B

Analysis by http://www.golearnforex.net

Tags: daily forex analysis, forex analysis

Daily Review 07/12/2009

EUR/USD – Last: 1.4870

Resistance	1.4925	1.4970	1.5000
Support	1.4800	1.4765	1.4735

GBP/USD – Last: 1.6470

Resistance	1.6525	1.6590	1.6620
Support	1.6390	1.6357	1.6275

USD/JPY-Last: 90.25

Resistance	90.75	91.35	91.65
Support	89.70	89.154	88.75

CAD/USD – Last: 1.0565

Resistance	1..0615	1.0645	1.0690
Support	1.0515	1.0480	1.0460

Research by http://www.ufxbank.com

Tags: daily forex review, forex review

Select the Best Forex Trading Software

In forex trading, the software that you select for your forex trade is of utmost importance. There are number of forex trading companies spread throughout that selecting appropriate forex software would be somewhat difficult. There is forex software products offered that are available online on the live forex trading platform, but there are even some other elements considered significant when it comes to forex software.

Vital Elements for your forex Software

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Offering a good security for the forex trade that you are involved in includes a company offering twenty four hour technical server support to your software, twenty four hours maintenance, regular backups of all the data and a system of security that is being designed to protect unauthorized access. There are also security protocols besides this. There are some companies in forex trading using fingerprint scanners and smart cards for ensuring that only their staff has an access to the servers.

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There are a number of forex software’s available in the forex market. Now you have to make a wise decision based on your knowledge, skills and experience to choose the one that will fit your needs. You can take the assistance of the ones who are already involved in forex trading form a long time, your friends or the forex broker for choosing the best forex software for promoting your forex business ahead and reaching the heights of success shortly.

Use this forex software in your forex trading business. It definitely gives good results, if used properly. Before using anything in real time, you need to gather some knowledge and information regarding how to use it, its variable features, benefits, drawbacks, etc. If you are aware of all the details and features of what you are using, you will be able to regulate it in a better way in your trade.

After making sure that all the above mentioned features are present in your forex software that you prefer to select will aid in ensuring the success of forex trading gradually. Furthermore, forex software is a necessary element if you wish to earn money and make profits in the forex business.

So, move ahead and make a wise selection. All the Best!!!!

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