GBP Weakness in the Forex Market in Result of Moody’s UK Downgrade

Up, up, and away! Says the Euro to the GBP.

Moody’s downgrade of the UK’s prestigious AAA rating was a wake up call to the United Kingdom late on Friday.

What Did Moody’s Say? According to Moody’s the UK has “sluggish growth which Moody’s now expects will extend into the second half of the decade”.

Another reason for the UK downgrade according to Moody is it’s increasing debt: “And, as a consequence of the UK’s high and rising debt burden, a deterioration in the shock-absorption capacity of the government’s balance sheet, which is unlikely to reverse before 2016.” (Moody’s)

The EURGBP could be on it’s way through the critical .883 level in the next week or two if this momentum continues.

Yen News The Yen is also hitting new Yen lows against the United States Dollar. With a new BOJ governor to be set in place soon, it is very likely for the Yen’s volatility to be high in the near future.

 

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2949 and 1.2874(main), where correction is possible. Break would give 1.2846, where correction also may be. Then follows 1.2822. Break of the latter would result in 1.2777. If a strong impulse, we would see 1.2758. ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2949 and 1.2874(main), where correction is possible. Break would give 1.2846, where correction also may be. Then follows 1.2822. Break of the latter would result in 1.2777. If a strong impulse, we would see 1.2758. ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2949 and 1.2874(main), where correction is possible. Break would give 1.2846, where correction also may be. Then follows 1.2822. Break of the latter would result in 1.2777. If a strong impulse, we would see 1.2758. ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2949 and 1.2874(main), where correction is possible. Break would give 1.2846, where correction also may be. Then follows 1.2822. Break of the latter would result in 1.2777. If a strong impulse, we would see 1.2758. ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2600(main), where correction is possible. Break would give 1.2585, where correction also may be. Then follows 1.2556. Break of the latter would result in 1.2528. If a strong impulse, we would see 1.2509. Continuation will ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today#8217;s support: - 1.2600(main), where correction is possible. Break would give 1.2585, where correction also may be. Then follows 1.2556. Break of the latter would result in 1.2528. If a strong impulse, we would see 1.2509. Continuation will ......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

 06.01.2012 13:40 Friday EUR/USD
Today’s support: - 1.2758 and 1.2735(main), where correction is possible. Break would give 1.2690, where correction also may be. Then follows 1.2673. Break of the latter would result in 1.2655. If a strong impulse, we would see 1.2630. Continuation will give 1.2611.

Today’s resistance: - 1.2845 and 1.2877(main). Break would give 1.2904, where a correction is possible. Then goes 1.2931. Break of the latter would result in 1.2968. If a strong impulse, we’d see 1.3005. Continuation will give 1.3047 and 1.3094.

USD/JPY

Today’s support: - 76.87 and 76.52(main). Break would bring 76.39 where correction is possible. Then 76.15, where a correction may also happen. Break of the latter will give 75.94. If a strong impulse, we would see 75.68. Continuation would give 75.44

Today’s resistance: - 77.37 and 77.88(main), where a correction may happen. Break would bring 78.12, where also a correction may be. Then 78.30. If a strong impulse, we would see 78.47. Continuation will give 78.72.

DOW JONES INDEX

Today’s support: - 12325.37, 12253.20, 12205.70 and 12135.94(main), where a delay and correction may happen. Break of the latter will give 12116.14, where correction also can be. Then follows 12071.20. Be there a strong impulse, we shall see 12043.50. Continuation will bring 12014.00 and 11985.28.

Today’s resistance: - 12487.50 and 12512.82(main), where a delay and correction may happen. Break would bring 12528.62, where a correction may happen. Then follows 12556.40, where a delay and correction could also be. Be there a strong impulse, we’d see 12584.13. Continuation would bring 12605.57.

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today’s support: - 1.2758 and 1.2735(main), where correction is possible. Break would give 1.2690, where correction also may be. Then follows 1.2673. Break of the latter would result in 1.2655. If a strong impulse, we would see 1.2630. Continuation will give 1.2611.

Today’s resistance: - 1.2845 and 1.2877(main). Break would give 1.2904, where a correction is possible. Then goes 1.2931. Break of the latter would result in 1.2968. If a strong impulse, we’d see 1.3005. Continuation will give 1.3047 and 1.3094.

USD/JPY

Today’s support: - 76.87 and 76.52(main). Break would bring 76.39 where correction is possible. Then 76.15, where a correction may also happen. Break of the latter will give 75.94. If a strong impulse, we would see 75.68. Continuation would give 75.44

Today’s resistance: - 77.37 and 77.88(main), where a correction may happen. Break would bring 78.12, where also a correction may be. Then 78.30. If a strong impulse, we would see 78.47. Continuation will give 78.72.

DOW JONES INDEX

Today’s support: - 12325.37, 12253.20, 12205.70 and 12135.94(main), where a delay and correction may happen. Break of the latter will give 12116.14, where correction also can be. Then follows 12071.20. Be there a strong impulse, we shall see 12043.50. Continuation will bring 12014.00 and 11985.28.

Today’s resistance: - 12487.50 and 12512.82(main), where a delay and correction may happen. Break would bring 12528.62, where a correction may happen. Then follows 12556.40, where a delay and correction could also be. Be there a strong impulse, we’d see 12584.13. Continuation would bring 12605.57.

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

Today’s support: - 1.2758 and 1.2735(main), where correction is possible. Break would give 1.2690, where correction also may be. Then follows 1.2673. Break of the latter would result in 1.2655. If a strong impulse, we would see 1.2630. Continuation will give 1.2611.

Today’s resistance: - 1.2845 and 1.2877(main). Break would give 1.2904, where a correction is possible. Then goes 1.2931. Break of the latter would result in 1.2968. If a strong impulse, we’d see 1.3005. Continuation will give 1.3047 and 1.3094.

USD/JPY

Today’s support: - 76.87 and 76.52(main). Break would bring 76.39 where correction is possible. Then 76.15, where a correction may also happen. Break of the latter will give 75.94. If a strong impulse, we would see 75.68. Continuation would give 75.44

Today’s resistance: - 77.37 and 77.88(main), where a correction may happen. Break would bring 78.12, where also a correction may be. Then 78.30. If a strong impulse, we would see 78.47. Continuation will give 78.72.

DOW JONES INDEX

Today’s support: - 12325.37, 12253.20, 12205.70 and 12135.94(main), where a delay and correction may happen. Break of the latter will give 12116.14, where correction also can be. Then follows 12071.20. Be there a strong impulse, we shall see 12043.50. Continuation will bring 12014.00 and 11985.28.

Today’s resistance: - 12487.50 and 12512.82(main), where a delay and correction may happen. Break would bring 12528.62, where a correction may happen. Then follows 12556.40, where a delay and correction could also be. Be there a strong impulse, we’d see 12584.13. Continuation would bring 12605.57.

My Experiences Of Trading Forex And Stocks Using Long Term Charts

To some extent trading the forex markets using long term charts (such as the daily and weekly charts) is a lot easier than trading the short term charts (such as the 1 and 5 minute charts). Indeed that's why my core trading system, ie my main 4 hour trading system (see right for more details), is based on the 4 hour and daily charts.

However when you are comparing long term forex trading to long term share trading, there is only one winner for me - share trading.
 
There is one thing you have in your favour when trading good quality stocks, and that's the fact that the share price should continue heading higher as long as the company is growing it's earnings every year (and ideally it's dividends as well).
 
So all you have to do is find those stocks that have shown consistent earnings growth over many years (and are likely to continue growing in future years) and buy the actual stocks or open long positions when the opportunities arise, ie when they are oversold on a technical basis or massively undervalued on a fundamental basis.
 
In other words whenever the share price falls with the wider market, you should view this an opportunity to scale into long positions, safe in the knowledge that you are trading a solid long term growth company and the long term trend should prevail at some stage.
 
When you are trading forex pairs on the other hand, you can't really get a firm idea of the underlying long term trend. For example no-one knows if the GBP/USD or EUR/USD pairs will continue heading higher or lower in the coming years.
 
So in effect you are trading blind to some extent. There are rare occasions when the fundamentals can give you a better idea of any possible long term trends, but unless you are a skilled economist who is prepared to look at lots of economic data from various countries, it is very hard to do.
 
In most cases all you have to go on are technical indicators, whereas you have technical indicators and financial forecasts and predictions to help you when trading stocks.
 
Finally with share trading you can afford to take a long term view if you buy the actual stock, and not panic too much if the price moves against you initially. You can sell your position or take a loss whenever you want, however with forex trading it is not so easy to take a long term view because your position may well be leveraged. Therefore you may be forced to close out positions if the price moves against you and you start to incur big losses.
 
Saying all that, I still believe there are decent profits to be made from long term forex trading, and I certainly don't want to put anyone off because technical analysis works really well on these long term charts. The indicators themselves are more reliable and things like fibonacci levels and lines of support and resistance take on greater significance.
 
However I just think long term share trading is slightly easier to make consistent profits if you only trade high quality growth stocks because you already know the long term trend. Therefore you can trade in and out of positions accordingly.
 
Ultimately it is up to you to decide what style of trading is best for you, and what type of instrument you want to trade. If you are like a lot of traders, you probably won't want to trade any long term charts whatsoever. However I just thought I would write this article comparing long term forex trading to long term share trading because some people prefer this more relaxed style of trading.

 

 

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The information contained on this website should be used for educational purposes only and does not constitute financial advice.

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IG Index Reduces Spreads On Forex Pairs

IG Index have brought good news to a lot of forex traders this week with the announcement that they are cutting spreads on many different currency pairs once more. They were already really competitive, but now you will be hard pushed to find a spread betting firm or forex broker that offers tighter spreads.
For example the dealing spreads for the EUR/USD and USD/JPY pairs start at 0.8 pips, whilst the spread for the GBP/USD and EUR/GBP pairs start at 1 pip. This is a big improvement because I've used IG Index to trade these pairs with a spread of 2 or 3 pips in the past.
The only downside is that these low spreads are not fixed at this level all the time. For example I've just spent the last minute watching the GBP/USD spread, and although the spread often stays at 1 pip with every tick, it sometimes goes up to 2.5 pips.
Overall, though, it is still a very welcome announcement because I use IG Index quite a lot, and I know quite a few people who read this blog use them as well.

A Review Of The Forex Markets In 2011

Another year is coming to an end and I think it's fair to say that in general it's been a really tough one for a lot of forex traders. I have certainly found it quite hard to make money in recent months. Indeed I haven't traded at all for several weeks now as I'm taking an extended break from forex trading at the moment.

So let's look back at three of the most important currency pairs – the GBP/USD, EUR/USD and USD/JPY pairs – and I will try and explain why these pairs have been so hard to trade this year.

GBP/USD:

If you look back at the price action for the GBP/USD pair, you will see that it is now pretty much back where it started back in January. The price did manage to go as high as 1.6747 at the end of April, but broadly speaking, it has been trading sideways for most of the year with no clear trend. In the autumn and winter months, the price has fallen slightly as the news coming out of Europe continues to worsen, but it is still not in any major downward trend.

The frustrating thing about this pair is that the daily trading range has been very small compared to previous years. Whereas the ATR indicator (indicating the average true range) has been closer to 200, this year it hasn't gone above 150, and has been much lower than this for most of the year. At the moment it is a pitiful 112 points.

EUR/USD:

The EUR/USD pair has of course been a lot more lively because the Eurozone crisis directly affects this pair most of all. As a result we have had a yearly trading range of more than 2000 points. There was a decent upward trend in the first five months of the year, when there were some decent profits to be made, but since then there has been a lot of uncertainty, and subsequently a lot of sideways price action.

At the moment there is a downward bias and it is getting close to the low that was posted at the start of the year. However it is still really hard to trade because we are still at the mercy of the European politicians.

USD/JPY:

The USD/JPY pair was one of the main pairs that I based my 4 hour trading strategy on. However this pair hasn't been that consistent this year, and I subsequently only traded it on a few occasions.

This pair was actually very lively in the first half of the year, however in the last six months it seems to be forming a solid base from which to build. It has drifted downwards and remained within a tight 200 point trading range.

It is now looking as if it is finally going to break upwards out of this range, but it certainly hasn't been easy to trade in the meantime because the average daily trading range has been less than 70 points for large parts of the year (at the moment it's just 37 points), and there has been no real trend in recent months.

Final Thoughts:

So as I say, it has been a challenging year in 2011 for many forex traders, including myself. The easiest markets to trade are trending markets, but there are no real trends at the present time.

In my case my 4 hour trading system relies on clearly defined trends on the daily chart, so that the EMA crossovers on the 4 hour chart are highly likely to generate decent returns on a consistent basis. However when the short term trends are weak on the daily chart, it makes things very difficult.

Hopefully the Eurozone crisis will be resolved one way or the other in the coming months, and 2012 will be a much more profitable year for all of us.

Forex technical indicators, take a look the status of the most important foreign exchange market for the day of the 26.07.2011

Here is a summary of all Forex technical indicators, the status of the most important foreign exchange market for the day of the 26.07.2011 takes a look.

And above all, you do not, your orders to grant and the calendar of the economic Forex.fr forget! Good business for all.

USD-CHF
We were too optimistic with our weekly channel changes between 0,8000 and 0,8300! We thought, the dollar would be marked for the August 2 significantly above the 0,8000, but it seems that the delay in raising the US debt ceiling fear the worst for investors who are disposed of their dollars. The USD / CHF again broke his record in the last 24 hours of 0,8178 to 0,8007 down! For Tuesday, should be the bar 0,8000 tested and are surely broken. Channel fluctuation of 0, 7950-0, 8100.

EUR-USD
1,4326 and 1,4501 (this morning): the EUR / USD has once again volatile, with many movements between the extremes like this proves. After the provisional solution to the crisis in Greece, Ireland and Portugal, which has received an aid package from the EU and the IMF, will she forced again to renegotiate the conditions? What is in Greece happen not in any way transferred to others countries will, after several politicians... Fears for the coming weeks not going away and the standard go to the United States would automatically catastrophic impact on Europe. Valid 1, 4375-1, 4525 the channel should be for the next 24 hours.

Forex, is what made by that?

Forex or (foreign exchange) also known as foreign exchange market or Forex market is the second financial market in the world in terms of total volume. it directly behind the market rate.

This is the place to which the currencies, the currencies of different countries are bought and sold, and brokers or to speculate on changes in these currencies. (Speculation on currencies represent the largest share of this market, far ahead of the buying and selling of foreign currency to buy goods and services in foreign currency).

Forex

What strategy to choose Forex trading

Take some time, before the entry of the FOREX account.

The value of fundamental analysis in Forex

On the foreign exchange market, analyze technical expert trends like the stock market always run

Considerations for a beginner Forex trading before you begin

If you opened your trading account FOREX, and you want to start transactions, we recommend you some advice before you start: first you will certainly understand in detail of the contract you signed with your Forex broker.
To note the following points before you, to enable your Forex account:
-Take a look at the different currency pairs and their prices, supply and demand.
-Have you chosen a reliable platform?
-Setting a value of the smallest capital, that you begin to invest?
-The conditions of the recotation are you convinced?

It is advisable to consult a company that competitive spreads and FOREX home offers even an account to open, will he give you that to reduce, if not, then huge amounts of money to pay costs.

Make sure the transparency of the platform from which you, the open Forex account

Considerations for a beginner Forex trading before you begin

If you opened your trading account FOREX, and you want to start transactions, we recommend you some advice before you start: first you will certainly understand in detail of the contract you signed with your Forex broker.
To note the following points before you, to enable your Forex account:
-Take a look at the different currency pairs and their prices, supply and demand.
-Have you chosen a reliable platform?
-Setting a value of the smallest capital, that you begin to invest?
-The conditions of the recotation are you convinced?

It is advisable to consult a company that competitive spreads and FOREX home offers even an account to open, will he give you that to reduce, if not, then huge amounts of money to pay costs.

Make sure the transparency of the platform from which you, the open Forex account

A few tips before they affect the FOREX

Are you looking for Forex start? LiteForex