GoLearn Forex Analysis 17/12/2009
Is the CAD Headed for a Breakout? By GoLearn Forex
USD/CAD:
The Canadian Dollar from a technical standpoint is giving every indication it is going to breakout. Price has been consolidating for several weeks. You can see more clearly the consolidation in the Chart below depicted by the orange triangle.
Typically we draw a triangle where only one side represents the slope. However, the triangle drawn below is indicative of investor’s uncertainty with regards to the CAD. The Canadian economy is holding strong. The CAD is a commodity currency and will rise and fall as commodity prices rise and fall (in particular Oil). The Dollar has been rallying which should mean a weaker Loonie, but this rally stems from positive U.S economic data. The U.S economy and that of their northern neighbor are linked to a certain extent as they feed off of one another. Therefore, positive U.S data should also be good for the CAD. Therein lies the conflict and thus you have a dual sided sloping triangle.
The CAD is currently trading above its 50 day MA. Similar to the AUD and NZD it failed to breach the 100 day MA in spite of the Dollar rally. As the CAD wedges itself into the triangle we are looking for the following to occur in order to trip an entry signal. If the Loonie produces a candle south of the 50 day MA and south of the bottom slope of the triangle then look to enter a Long CAD position. Alternatively, if the CAD produces a candle body north up the upper slope of the triangle and the 100 day MA then enter a Short CAD position. Lastly, if a Short CAD signal triggers we see a near term take profit level at 1.0880 coinciding with the Fibonacci 23.6% Retrace level. We view this level as strong point of resistance.
Oil Takes Off by GoLearn Forex
The FOMC meeting came and went without stirring the waters. In the Euro-zone and London, Equity Markets finished their sessions in positive territory ahead of the highly anticipated U.S FED rate decision. The accompanying FOMC statement was intentionally left mostly unchanged so as not to roil markets. It served its purpose well as the DJIA finished the day off slightly lower by 10.88 points to close at 10,441.12 while the tech heavy NASDAQ closed up 5.86 points to 2,206.91.
In the Currency Markets the Dollar followed Equity Markets finishing the session nearly flat against its G-7 counterparts. The AUD gave up .61% still reeling from CB comments that took on a more dovish tone in regards to any near term future rate hikes.
Oil soared to 73.54 during intra-day trading before leveling off the day at 72.66, a gain of $1.97. Gold climbed $12.70 an ounce to 1,137.90. On the Agricultural front Soybeans, Cotton and Sugar continued to rally while Copper, Wheat and Corn declined on Dollar strength.
On the economic data docket for today we have the BOJ rate decision to be announced, although no change is expected. In the U.K, Retails Sales are set to be released while in Canada CPI data will hit the wire. In the U.S, Jobless Claims will print as will the measure of Leading Indicators and the Philadelphia FED survey.
Upcoming Forex Events for December 17, 2009
GBP Retail Sales (MoM) Forecast 0.50% Previous 0.40%
CAD Core CPI (MoM) Forecast 0.10% Previous 0.10%
USD Initial Jobless Claims Forecast 470.00K Previous 474.00K
JPY Interest Rate Decision Forecast 0.10% Previous 0.10%
Analysis by http://www.golearnforex.net
Selecting the apt forex trading platform
Forex trading can be defined as the trading of foreign currencies for another currency. The growth of these trading techniques has been rapid and it has grown up to be the biggest market in the financial sector. The forex market generates about $2 trillion on a daily basis and hence has a strong hold in the financial world. The market is always open as it is a worldwide market in the financial world. Hence traders trade always and hence the market is always open. It allows traders to make money throughout the day.
The place which is used by traders to deal with their currencies and foreign currencies is the forex trading platform. The other name of these platforms is stations.
The decision of taking a platform can be a very tough task. The possibility of making in different platforms is advertised by a large number of websites. All the advertisements claim that the advertised platform is the best and can help the trader make the maximum money in the advertised platform. The buyer of the software has to check whether the system that he has will facilitate the software that the platform provides.
The help from an experienced person is to be taken if required by a beginner. The thing that can be most helpful for a beginner or a new investor in forex trading is a live seminar that would clear all doubts and answer all questions that would be in the mind of an investor who is very new to the market scenario. The decision on the software has to be made after the investor checks whether the software is completely in his range. The call for help should also be answered by a reliable person who can help the beginner in all situations.
The investor should be helped by the platform in order to check the rates in the market, it should also help in setting the rates and also should be able to stop loss if any for the investor. The large number of these platforms do assist the forex traders in order to carry out their deals and trades in a very efficient manner.
The working of the forex trading software also should be well known by the investor. The constant usage of the system will help you to understand the software better. The software needs to be explored and mastered.
The presence of demo accounts is a big help to the beginners as it helps them to practice trade in a real time scenario. These accounts will be very helpful for them t learn the tricks in trading. This is a practice ground in which various strategies can be implemented.
The setup of a platform may require you to download a software. There are some web links that allow the user to have a direct download of the platform.
Forex Platforms can enhance Your Gains and Offer Financial Stability
You all know it that the name of the game played in the forex market is nothing but- PROFIT. There are some who are satisfied and enjoy the little numbers in their forex account modifying very rapidly. Basically speaking, any person steps into the forex market with the only aim of making adequate gains and that too, in a very short time. If you are the one of such individuals who is highly concerned about their profits, you should definitely use a good quality forex trading platform in order to make rapid success in forex.
A forex trading platform is also referred as a forex software trading platform, currency software trading platform, or a forex trading system. It might be referred by any name, it is desirable to own a good quality product if one wish to make successive gains while indulged in the currency exchange market. For persons, who are fond of observing the numbers changing rapidly, no need to worry at all? It will not have any influence in any way.
However, there do exist some of the outstanding products that are now easily accessible to the common man. Such forex trading platforms are there in the forex market from years together. During the former years, they have undergone a number of enhancements, refinements as well as upgrades in order to remain updated on the current market trading as well as investment approaches.
There is nothing throughout the world that would generate stats on a regular base like that of the forex markets and it is also not possible by human beings to take benefit of that effectively without using an outstanding package of software. Such systems detain the information in a timely manner, then assemble it based on the preprogrammed algorithms and ultimately offer investment advices depending on the criteria’s that are specifically designed the product developer.
It is essential that one understands such platforms that are developed independent of one another. Hence, the criteria to make the recommendations on trading do frequently differs. Then what are you supposed to do and believe which system for your trade? This is confusing question that has got a solution after years of research and study.
A successful forex approach that can take the benefit of such differing recommendation was developed firstly. It could make use of 2 or 3 systems at the same time and wait till it gave some recommendations of investments depending on different aspects that were used to decide the appropriate time of investment. This strategy was indeed found as a profitable one to make use of the system that one can buy and then turn into one called as an investment bank that can be used for autopilot.
In this way, the forex trading platforms not only improves your profits, but also provides financial stability to your trade.
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