Well this week could have been a spectacular one but it was sadly a case of missed opportunities. I've been talking about the GBP/USD entering a new downward trend for a few weeks now but when it did finally break downwards this week, it left me behind. I was waiting for a slight pull-back yesterday morning after the initial breakout so I could get a good entry point, but sadly there wasn't one. It was a similar story on the EUR/GBP and GBP/JPY pairs as well, so in the end I only ended up trading two positions.
The first trade was on the EUR/USD pair early Tuesday morning. The daily Supertrend was green, ie bullish, so I was still looking for long positions on the 4 hour chart, and I went long after an upwards EMA crossover at 1.4710. I then closed half the position for 50 points and let the other half run, moving my stop loss to break-even. Sadly my target price of 1.4850 didn't quite get triggered, and worse still the price then fell back to take me out at break-even.
(There was another upwards EMA crossover on this pair but I didn't trade this one as I thought the upward trend was starting to run out of momentum).
The second trade was slightly more profitable. It was on the USD/JPY later that day. I went short after a downwards EMA crossover at 91.41 and then closed half the position for 40 points and the second half of the position for a further 40 points at 90.61.
So it was still a profitable week but as I say it could have been a hugely profitable week if I could have got a few good entry points on some of the big movers.
Friday, October 2, 2009
Forex: Dollar back down Fri, Sep 25 2009
Consumer Confidence was revisited to the upside, reaching 73.5 for September, while New Home Sales come out 429K at from 433K previous month, also under expectations. Rising 0.7%, less than expected, U.S. stocks spike to the downside, and quickly reverse, still with no strong definitions.
Greenback tuned to the downside against major rivals, with GBP/USD back to the 1.6000 level, and EUR/USD approaching to key 1.4700 zone. USD/JPY fell back close to 90.00, and majors are attempting to regain the bullish strength against U.S. currency.
Greenback tuned to the downside against major rivals, with GBP/USD back to the 1.6000 level, and EUR/USD approaching to key 1.4700 zone. USD/JPY fell back close to 90.00, and majors are attempting to regain the bullish strength against U.S. currency.
U.S. Forex Market Commentary Thu, Sep 24 2009
EURO
The euro weakened vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4625 level and was capped around the $1.4800 figure. The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank today announced they will extend their liquidity-providing facilities and operations through January 2010. The common currency was partially dragged lower by comments from Bank of England Governor King who said the weaker sterling has been “helpful” in reducing economic and financial imbalances. News that BoE would meet with London-based economists on Tuesday to discuss economic policies. Data released in the eurozone today saw the French number of unemployed rise 0.7% m/m to 2.553 million. Also, the German Ifo business confidence index rose to 91.3 in September from 90.5 in August, the sixth consecutive improvement but below expectations. The German economy, however, could suffer from political uncertainty, difficult credit conditions, and a weakening labour market. The ECB’s September monthly bulletin reported the EMU-16 economy is stabilizing. ECB member Quaden reported the worst of the financial crisis is over but said business may not return to normal. In U.S. news, data released in the U.S. today saw August existing home sales off 2.7% to an annualized 5.10 million rate. Weekly initial jobless claims fell to 530,000 from a revised 551,000 while continuing claims fell to 6.138 million from a revised 6.261 million. Euro bids are cited around the US$ 1.3900 figure.
JPY / CNY
The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥90.35 level and was supported around the ¥91.60 level. Bank of Japan announced it will extend liquidity provision measures through January 2010 to cushion money markets in concert with other central banks. Yen borrowing costs declined to a three-year low with three-month Libor at 0.34750, the lowest level since June 2006. Similarly, U.S. dollar three-month Libor printed at a record low of 0.28500. U.S. dollar rates have been below Japanese dollar rates since 24 August and that has resulted in the U.S. dollar being used as a carry trade funding currency. Data released in Japanese overnight saw the July all industry activity index climb +0.5% with industrial production up 2.1% m/m and the tertiary index up +0.6% m/m. Additionally, the August trade surplus came in stronger-than-expected at ¥187.5 billion. The Nikkei 225 stock index gained 1.67% to close at ¥10,544.22. U.S. dollar offers are cited around the ¥94.75 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥133.35 level and was capped around the ¥134.65 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥146.30 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥88.15 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8218 in the over-the-counter market, down from CNY 6.8256. People’s Bank of China Deputy Governor Hu yesterday reported G20 nations should consider establishing an international wealth fund to invest a portion of members’ current account surpluses. There is continued speculation among dealers that Chinese monetary authorities may allow the yuan to appreciate further vis-à-vis the U.S. dollar.
The euro weakened vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4625 level and was capped around the $1.4800 figure. The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank today announced they will extend their liquidity-providing facilities and operations through January 2010. The common currency was partially dragged lower by comments from Bank of England Governor King who said the weaker sterling has been “helpful” in reducing economic and financial imbalances. News that BoE would meet with London-based economists on Tuesday to discuss economic policies. Data released in the eurozone today saw the French number of unemployed rise 0.7% m/m to 2.553 million. Also, the German Ifo business confidence index rose to 91.3 in September from 90.5 in August, the sixth consecutive improvement but below expectations. The German economy, however, could suffer from political uncertainty, difficult credit conditions, and a weakening labour market. The ECB’s September monthly bulletin reported the EMU-16 economy is stabilizing. ECB member Quaden reported the worst of the financial crisis is over but said business may not return to normal. In U.S. news, data released in the U.S. today saw August existing home sales off 2.7% to an annualized 5.10 million rate. Weekly initial jobless claims fell to 530,000 from a revised 551,000 while continuing claims fell to 6.138 million from a revised 6.261 million. Euro bids are cited around the US$ 1.3900 figure.
JPY / CNY
The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥90.35 level and was supported around the ¥91.60 level. Bank of Japan announced it will extend liquidity provision measures through January 2010 to cushion money markets in concert with other central banks. Yen borrowing costs declined to a three-year low with three-month Libor at 0.34750, the lowest level since June 2006. Similarly, U.S. dollar three-month Libor printed at a record low of 0.28500. U.S. dollar rates have been below Japanese dollar rates since 24 August and that has resulted in the U.S. dollar being used as a carry trade funding currency. Data released in Japanese overnight saw the July all industry activity index climb +0.5% with industrial production up 2.1% m/m and the tertiary index up +0.6% m/m. Additionally, the August trade surplus came in stronger-than-expected at ¥187.5 billion. The Nikkei 225 stock index gained 1.67% to close at ¥10,544.22. U.S. dollar offers are cited around the ¥94.75 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥133.35 level and was capped around the ¥134.65 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥146.30 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥88.15 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8218 in the over-the-counter market, down from CNY 6.8256. People’s Bank of China Deputy Governor Hu yesterday reported G20 nations should consider establishing an international wealth fund to invest a portion of members’ current account surpluses. There is continued speculation among dealers that Chinese monetary authorities may allow the yuan to appreciate further vis-à-vis the U.S. dollar.
September 24, 2009 Free Forex Trading Video - How To Get Rich Slowly
Many people enter the world of forex trading with the aim of making as much money as possible. However the assumption that most people make is that they need to be trading lots of positions in order to generate these big profits.
This is not necessarily the case though because it can be just as profitable (and it most cases a lot more profitable) to trade the longer term charts. I myself use the daily charts to determine the overall trend and the 4 hour charts for my entry and exit points.
However as Adam Hewison points out in his latest trading video, you can generate some serious profits by lengthening the time frame even further and trading the monthly price charts.
For example in this video you will learn how you could have successfully generated a clear profit of 6383 pips over the years just by trading the monthly chart of the EUR/USD pair. Plus because of the fact that currencies often trend for very long periods, you should see similar results when trading the other currency pairs as well.
This is not necessarily the case though because it can be just as profitable (and it most cases a lot more profitable) to trade the longer term charts. I myself use the daily charts to determine the overall trend and the 4 hour charts for my entry and exit points.
However as Adam Hewison points out in his latest trading video, you can generate some serious profits by lengthening the time frame even further and trading the monthly price charts.
For example in this video you will learn how you could have successfully generated a clear profit of 6383 pips over the years just by trading the monthly chart of the EUR/USD pair. Plus because of the fact that currencies often trend for very long periods, you should see similar results when trading the other currency pairs as well.
Subscribe to:
Posts (Atom)
Flag counter
