Tuesday, June 30, 2009
The Strength of the Pound
Thursday, June 25, 2009
Lookout for Intervention
The initial objective is still 1.1380 which was our previous market view report dated the 8th of June 2009 in our website. This just shows the resiliency of the US Dollar strength in our previous blog on the 18th of June. It is on its way to the price resistance and may probably extend beyond the 82.35 psychological market price. The projection is in line with the time table that we have stated that it may be able to achieve this target within the next few weeks towards the 3rd quarter movement of the year.
With the prices of gold and oil supporting the positive out look on the dollar; plus the better than expected durable goods orders that came out, the USDX is really on its way up North with some corrective movements along the way. The USD / JPY may soon follow once some of the major players would opt to settle their heavily crossed positions against the USD / CHF.
In another scenario , the EUR / GBP cross would be favorable to trade where the potential of gains is much higher and more identifiable from the chart formations. Please see comparative chart analysis between the 4 hour and weekly EUR / GBP charts in candlestick bar.
The market view is a matter of analysis regarding market conditions and should not in anyway be considered as recommendation to buy or sell any foreign currency for that matter. Investors should consider their financial conditions and should consult a financial adviser before engaging in the Foreign exchange market.
Good Luck and Happy trading!
Thursday, June 18, 2009
The Resiliency of the US Dollar
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As you may have noticed, I would be posting market outlooks and reviews on more particular currencies that may become pace setters before it happens. I would be doing it in between writing and publishing articles so in that way, it would not be too dragging for some following the blog.
Now, there is a link established whenever you would click a featured chart or currency to our website which is still under construction as we go along. There was a need to open it for initial viewing and response due to the market conditions which we wanted to share our outlook in the market with our co-investors and clients.
For your information there will be a better and a much improve site coming very soon.
Thank you very much.
Thursday, June 11, 2009
An FX Traders Mindset . . . Part 1
While trading the Foreign Exchange Market can be exciting to most traders, it is in fact the challenge that faces the traders appetite for risk that makes it more attractive for some who would be willing to accept the loss of funds at a certain degree in exchange for the potential gains that the market offers. However, a traders' mindset through the course of trading experiences could be developed by proper training. As traders and strategist learn from mistakes made in the past. Experience has always been the best teacher. But it is in the correct moves and trades that should be keenly noted on how winning positions were done.
Making the same strategic moves twice or more that delivered the winning results should be noted and kept in place at all times. Although there is no guarantee that it will be the same in the near future. However, if such practice is done more, the probability is greater for a win than a loss. Practise makes perfect, so to speak. It is in the mindset and training on how the appropriate approach is done and repeated. Easier said than done!
A more traditional form is to apply the strategy of eliminating signals that can be deceiving to ones' view point. A clear example is viewing the technical charts on different time sequences, where each chart can show a negative or affirmative direction ( false signals ) from one another. And most of the time, for the trained eye it is clearer for them. But doesn't work for others. The overall summary can be seen on a bigger picture like the weekly and monthly charts provide. This also depends on the type of trader, either a short term or long term trader. On top of it is a matter of account size that needs to be considered as well.
A few combinations of technical analysis maybe quite helpful in eliminating these misleading signal like the price breakouts from a trend or the comparisons of the open, high, low and closing prices for the previous weeks. With the increase and decrease of volumes and open positions in the market it can be defined. This is just some of the ideas set to train oneself while trading specially in the Foreign Exchange market.