Wednesday, July 31, 2013

EURGBP Resumes Trend Direction

After a major corrective decline:

A lower Eurozone unemployment figure and a corrective USD price movement at the middle of the week have been quite supportive with the graduall decline of the EURUSD. However, the EURGBP cross have benefited the most in the past two trading session outperforming other asset classes amongst the cross rates.

MegaTrade101.com - EURGBP Resumes Trend Direction

Monday, July 29, 2013

MegaTrade101.com - Market Insight IV: Expectation vs. Market Perception

Expectation vs. Market Perception Majors & Crosses

After a lackluster trading week, we do expect an increase in market activity moving forward with another round of market reports are in the pipeline. On the other side of the European continent would be the German CPI forecast @1.7% and the Unemployment figure for July which is expected to remain the same.

While the US Consumer confidence is expected to correct and again the much anticipated FOMC meeting and rate decision scheduled on Wednesday would likewise provide the impetus for market volatility, along with US GDP Annualized figure forecast @1.0% vs. the previous figure of 1.8%. And Thursday highlight would be focused on the BOE rate decison on top of the Asset Purchase target for August together with the ECB rate decision is included in the schedule.

Coming through the US trading session, would be an expected increase in the ISM Manufacturing figure and culminating Friday with the Non-Farm Payrolls and unemployment rate adding to a long list of event risk the market particpants would have to absorb.

MegaTrade101.com - Market Insight IV: Expectation vs. Market Perception

Monday, July 22, 2013

Diversify: Trade Positions

On Gold & Equity
After a week of lackluster trading from the huge decline on the USD due to Bernanke's balancing remarks have been reflected in the FX market's ability to move in either directions. As most investors have likewise shifted money flow back to the equities and the precious metals markets.

With the Dow reaching beyond its historical highs @15589.40 have remained bullish supported with equity earnings at record levels after seeing the previous decline @14551.40 last June 24, 2013. And the recent decline of the USDx @80.60 on the week ending June 14, 2013. While, Gold registered its low @1180.19 the following week of June 23. This simple yet effective market scenario do occur, and when all the three major markets made their moves concurrently at the same time with a few interval difference on its time- frame. Surely, a lot of traders have noticed , except to simply overlook such indication of a price reversal can on be made thereafter. In essence, a major market reaction totally opposite was in the making.

Diversify: Trade Positions

Thursday, July 18, 2013

Forex Refresher : Strategic FX Trading Techniques

T-Perspective: GBPJPY CROSS

T-Perspective: GBPJPY CROSS

The weekly chart of the GBPJPY from the past 3 weeks of may have formed an evening star formation (bearish signal) coming from a high @156.70 registered on May 17, 2013. And declined to its lowest @147.09 level, which has held its price for the past month until this week’s high. The opening price @149.87 was resting on its major trend line support and currently supported by a buying divergence indicated by the arrows.

T-Perspective: GBPJPY CROSS

On GOLD & FOREX

MEGATRADE101 Aligned with PAULSON Insight

The recent interview with the legendary Hedge Funds Manager John Paulson on CNBC have remained undauntedly and determined with his outlook on Gold. The fact that the demand in owning a piece of the precious metal have undoubtedly remained strong specially at these current price levels.
Trade with Confidence - On GOLD & FOREX...

Wednesday, July 17, 2013

Trade Plan & Strategy: 06-713 (Declassified)

EURGBP, GBPJPY CROSSES & AUDUSD

This trade Plan and strategy is composed of the cross rates EURGBP, GBPJPY and the Austrailan Dollar for the major currency pairs. The summary plan consists of a detailed approach to trading these currency pairs. The summary plan consists of a detailed approach to trading these currency pairs. 06.713 - Declassified Trade Strategies from Premium Section to assist serious investors-traders of MegaTrade101 and would like to share & provide these information to our valued trader-viewers. Click to register and receive a copy free of charge.

Reference to:
Megatrade101.com: Trade Plan & Strategy.06-713

Monday, July 15, 2013

Market Analysis:

USD-AUD-EUR-GBP & Cross rates

Aside from the Consumer Price Index reports on both sides of the continent, the main focus would again be the testimony of Fed Chairman Bernanke Semi-Annual Policy Report and the G20 Finance Ministers & Central Bank Governors Meeting in Russia by the middle-to-end of the week's trading.

Clarifying statements on related monetary policy coming from these two major events would add a variety of market action and price swings that would reinforce or contradict exisitng market sentiments at this time. The overall sentiment weighing on market stability remains within this time-frame before culminating Friday's report from the central bankers meeting. Any daily price action in the market may tend to be not equally as important.

MegaTrade101.com - The Art of Trading the Foreign Exchange Market with Confidence - Market Analysis

USD INDEX VS. EURO DOLLAR INDEX


 THE STRATEGY OF RELEVANCE TRADING USING THE USD INDEX VS. THE EURO DOLLAR INDEX


Saturday, July 13, 2013

The Strategy of Relevance trading:

USD DOLLAR INDEX VS. EURO DOLLAR INDEX

The Best known Open ‘SECRET’ of Foreign Exchange Trading is the ' US Dollar Index ' as known in the industry as the DXY symbol or the DXc1- continues technical data on the value of the US dollar traded and measured from a basket of major foreign currencies. And the EURO Dollar Index, better known as the anti-US dollar in the industry.

It is a trade weighted average or a geometric means of the US Dollar's value against the Euro, which is the currency used by the unified group of European nations, the Japanese Yen, the Pound-Sterling known as the GBP, Canadian Dollar, the Swedish Krona and the Swiss Franc. Each currency has an equivalent value or percentage share to the composition of the US dollar index as it is traded in the Inter-Continental Futures Exchange at the New York Board of Trade. Please refer top chart comparison. Click to continue

MegaTrade101.com - The Art of Trading the Foreign Exchange Market with Confidence - The Strategy of Relevance trading:

Thursday, July 11, 2013

Post-Market Insight: Bernanke


USD-EUR-GBP-JPY
Reading the post-market behavior after the Fed Chairman's comments have reflected the undertone of its monetary policy. While sparking a rapid decline for the USD, where trader-investors rushed for short-covering actions when the European majors rallied more than half-way through their declines.

The USD's initial decline have touched our low objective @83.05 and continued with an opening gap in the Asian trading session today. While price action after the opening levels started moving higher providing a corrective decline contrary to its European counter-parts with the EURUSD @1.3026 from a high @1.3205.

MegaTrade101.com - The Art of Trading the Foreign Exchange Market with Confidence - Post-Market Insight: Bernanke

Wednesday, July 10, 2013

Market Insight: USD rallies higher

With some mix reports from the market, the USD continues its rally setting a new high @84.72 basis point in the American session. This prompted Cable to push even further on top of the widening trade deficit in UK that led the earlier decline for the Pound during the European session. While the limited soft correction for the Euro has held it prices from the recent Cash aid for Greece came through before giving up its recent session gains with a high @1.2897 and working now @1.2768; as the USD continues to move higher touching an 84.72 high, currently @84.67 as of this writing. Daily corrective pullbacks is expected and as long as the USDx remains above the 83.90 levels, it would hold true to its bull sentiments. Although, a decline lower than the figure of 83.05 basis point may prove to be pushing some serious pressure for a near-term corrective phase. Click to continue.

Saturday, July 6, 2013

The Right Approach to Technical Analysis

Part l: Technical Analysis
In most cases. an effective technical analysis MegaTrade101.com follows a distinct process based on historical trends established and price action that can be used as reference points for price resistance (High) and (Low) support. Depending on the approach and objectives, identifying trends can best be viewed as short-to-near term, medium-to-long term outlook.

This process would enable trader-investors the abiity to decide an appropriate trade position to take in the market place. More importantly, an effective technical analysis combined with a few selective tool applications can be utilize to project directional price trends ahead of the market. Certain market conditions do apply at certain times. As market conditions vary in some degree, price action plays a vital role in reflecting true market sentiments on real time trading. Click to continue

Related article: A Constructive Approach and The Strategic FX Trading Techniques

Wednesday, July 3, 2013

Market Insight: Majors & Crosses lll

With the USD (DXY) finally reaching our target range between 83.20-83.50 along side the USDJPY moving higher above the 100.00 levels, Wednesday’s ISM non-manufacturing survey would provide valuable insight about Friday’s Non-farm payrolls (NFP) report.

This would likewise provide a volume and price action-pickup before and after these reports. With only a day to go before Friday’s US non-farm payrolls report, the US dollar Index have managed to extended its gains across the board with the majors by reaching the 83.50 all important level. while other currency pairs have initially broke key technical levels, the lingering follow-through may hold the final switch as to when exactly would this occur...is the question. That's is why a market price squeeze would be a normal behavior to see in a thinly traded market condition. Click to continue

DXY SPOT vs. DOW JONES FXCM USDOLLAR

A technical-market analysis combining the traditional USDx (DXY) Spot with the DOW JONES-FXCM USDOLLAR may likewise provide a better understanding between price distribution as to the direction of price parameters. The difference is that, by applying the DJ-FXCM-USDOLLAR would provide a measure of the U.S. dollar’s value equally weighted (25% for each currency pair) as against four of the world’s most liquidly traded currencies; namely the Euro, Cable, Yen and the Aussie Dollar.

On the other hand, the Dow Jones FXCM Yen Index reflects changes in Value of Japanese Yen Measured Against Basket of Liquid Currencies: U.S. Dollar, Euro, Australian Dollar, New Zealand Dollar.

While the SPOT USDX, since its inception in 1973, weighs heavy in the European currencies, with EURO @58.6% weighting, and a total 78.3% weighting in European currencies including the Swiss Franc. Therefore, weighing which index would provide more weight as an added value to the trades made in the Forex market depends on one's perception of the market. Remember, that every strategist and trader / investor would be comfortable with and effective with their own trading style to say the least.

Monday, July 1, 2013

Market Volatility Ahead

The start of the third (3) quarter trading for a Monday remained at an initial stand-still with no solid price action seen except for short-session rally with the EURGBP cross rate. The string of reports this week from both sides of the continent would create a market squeeze with the upcoming "Fourth of July" celebration this Thursday.

Although the market's ability to provide price action would provide a volatile thin market price swings due to the scheduled market reports, particularly the Bank of England & ECB rate decision on the 4th of July holiday, and US unemployment & Non-Farm payroll figures thereafter. Thus-keeping market checks on rapid price swings during a thinly traded market where major players would take advantage of the market conditons from retail investors.

We, remain firm from our recent market view analysis as of June 27-28 with the same price parameters and market strategy in-place for the remainder of the week. With some minor price adjustments by mid-week before taking off for the holiday schedule. Although, monitoring price action would be important even after thursday's report would certainly put some milder pressure on the US session. But then again, watch for early trading reactions from the Asian traders and market price action from the start of the European sessions by Wednesday.