Archive for December 16th, 2009
GoLearn Forex Analysis 16/12/2009
Review Key Support and Resistance Levels for USD by GoLearn Forex
Key Support & Resistance (S/R) Levels:
As the Greenback continues to rally heading into the end of the year we thought it would be a good time to review a couple key S/R levels. Traders generate S/R based on a number of factors. One key factor is based on the tenor of the chart the trader is using. A trader using a tick or minute chart will be less concerned about S/R generated from a 4 hour chart that is 100+ pips from the current handle. However, that same trader will want to know where the longer term S/R levels sit. If price moves towards those points he can integrate them into his trading strategies thereby profiting and or avoiding losses.
GBP/USD:
The Cable is currently sitting below its 100 day MA which generates an already negative bias. A candle body below 1.6198 would generate the next Short entry point Near term profit taking would be the 200 day MA. If the 200 day MA is breached we would target the low of this range bound period near 1.5683 which also represents the Fibonacci 38.2% Retrace level. The 38.2% Retrace level was generated from the Sterlings turn around in January of this year.
AUD/USD:
The Aussie has shown great resilience and for good reason. The RBA had taken a hawkish stance on rates as it was amongst the first to raise rates. The Australian economy is in relatively good shape. Additionally, the AUD is a commodity currency and it has ridden the commodity rally. Currently the AUD is sitting just below the 50 day MA. A candle body appearing below .8944 equal to the Fibonacci 76.4% Retrace level, which also coincides with recent support levels would trigger a near term Short entry. We would increase the Short position with a close below the 100 day MA, currently holding at .8834. A long signal would be generated with a close well above near term resistance at .9325.
With the EUR taking a sharp nose dive yesterday it prompts us to look at recent relative price levels on the G-7. The EUR/USD is the most commonly traded pair in the world. The price of the EUR has broad implications on the relative value of other G-7 currencies. Although the below data can be shown graphically it is easier to view price differentials in a table. If the EUR is a leading indicator of relative value then the CAD, AUD, and GBP may be in for a minor drop.
Historical
Date EUR CAD AUD NZD JPY GBP
2009-10-02 1.4576 1.0797 0.8652 0.7160 89.8050 1.5946
2009-10-01 1.4545 1.0839 0.8697 0.7149 89.6050 1.5955
2009-09-30 1.4640 1.0695 0.8828 0.7232 89.7050 1.5982
2009-09-29 1.4587 1.0846 0.8703 0.7143 90.0885 1.5961
Current
Date EUR CAD AUD NZD JPY GBP
2009-12-15 1.4533 1.0611 0.9067 0.7224 89.6355 1.6272
US Producer Prices Climb by GoLearn Forex
Global Equity Markets were mixed on Tuesday as Dubai continues to sort out its debt repayment obligations. In the U.S Producer Prices climbed 1.8% which was more than double expectations. This caused stocks to retreat as it may engage the U.S Fed to raise rates out of necessity instead of a planned withdrawal from its current quantitative easing policies. The DJIA slid 49.05 points to close at 10,452. Ahead of the rate decision today traders have consolidated positions as markets may move drastically depending on what language the Fed uses.
There are a number of other economic data releases on the docket for today. Oil traders will be watching Crude Oil Inventory figures. CPI data as well as Housing Starts and Building Permits will also be on the wire today. In the U.K Jobless Claims will print although no major changes are expected. GDP in Australia has already printed slightly below expectations.
The Greenback continued to advance against its G-10 counterparts with the AUD giving up 1.15% for the day. The DXY closed above the 100 day MA to 76.961 helping to legitimizing the recent rally. Gold and Oil were essentially unchanged finishing the U.S session at 1.125.20 and 70.69 respectively.
Upcoming Forex Events for December 16, 2009
EUR CPI (YoY) Forecast 8.00% Previous 7.80%
USD Core CPI (MoM) Forecast 0.20% Previous 0.20%
USD CPI (MoM) Forecast 0.40% Previous 0.30%
USD Interest Rate Decision Forecast 0.25% Previous 0.25%
Analysis by http://www.golearnforex.net
Pros and cons of JAVA based forex trading platform
The development of technology has led to the development of trading platforms in various domains. Nowadays the usage of JAVA based trading platforms are gaining ground because the forex broker offers that more commonly and not the traditional software which has to be installed in the trader’s system.
When you opt for this particular platform, you have to understand the advantages and disadvantages of the system. This allows you to decide on whether it would suit you or not.
JAVA has the capability of creating dynamic programs that can be run in your browser window. It is possible since it is a programming language. This sounds to be an advantage for the traders.
One of the major advantages of this software is that it does not need to be installed in the trader’s computer. This means that the trader can access his account from any system that has a web browser. The traditional software did not have this facility. The trader could work only in the system in which he has his trading account. In order to use it in another computer, the user had to install the software in another computer as well. This thing means that JAVA has better accessibility.
The major disadvantage that JAVA suffers from is that the features are limited in the JAVA version whereas the traditional software has various features which would give data and stats to the trader. And hence the usage of external programs is required with JAVA to make it trader friendly software.
The traditional software is very reliable and the possibility of traditional software crashing is very rare and hence it poses a strong threat to JAVA based system in this regard. The web browsers have a higher chance of crashing as it is more vulnerable to it. If the software crashes then the trade is stopped. And the broker who has given this software loses his reputation. Hence brokers need to think twice and explain all the advantages and disadvantages of the software before selling it. This will help the trader to be prepared for such situations. The crashing of a software when trade is open is he most drastic thing that can happen to a trader while trading because he will then have no idea as to what is happening.
The possession of the forex broker’s phone number is always a wise idea. In case any of the software crashes then the trader can call the broker to close all the trades available on that day. This can be a very wise thing to do especially when you do not have a back up of the data. A forex broker who offers both will be the best option to take for the trader. This means that you have stability, accessibility and various other features.
A good forex platform produces good results
The main aim for any investor in the trade market is to make a profit. A profit is made by investing low and getting good returns. Every part of the market is amusing for every other man. Some people like to watch the numbers changing so rapidly while some people are awe struck by the large collection of data that is made available in the market. Although there are various things that really is interesting about the markets, the most prominent thing of the market is to make huge amounts of money with minimum investment and nowadays with the increasing number in fast trading techniques, the traders are interested in making money in a very quick time. Every trader wants to make money that is maximum in a very short period of time. There are a large number of traders who are not concerned about money as well. Well anyways, the people who are interested in making money in a very short period of time will always be in need of a forex platform. Not every platform can fetch you good results, the presence of a platform that has high quality is required in order to make the trader successful. It plays a very vital role in the success of the trader.
The forex trading system is the other name of a forex platform. The forex platform has a few other names as well like the currency software trade system. The name is not at all an issue in the market, every trader can have an unique name. The only thing that matters is the quality of the system. The top rated product will surely help the trader to make huge profits. The requirement of a good quality forex platform is always a must for traders who aspire to be successful.
Just as any other product, finding a reliable forex platform is quite a tough task because of the presence various fraud and below par products that are sold with an aim to duplicate original products. Very few good products can be found in the market nowadays which can be used by the investors who are new to the market. These forex platforms have been in use for a very long time and hence the platform has been upgraded with features that would help the traders in a big way. The product has undergone various transitions and modifications. This has been done with the motive to create a platform that is the best help for a trader. It has also been updated with various strategies and ploys that have been introduced in the market.
The forex trading system produces a large number of data in a single day and hence these forex platforms play a major role as it is not easily possible by the humans.
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