Month: July 2010

By Anton Eljwizat – The USD/CAD pair has experienced much bearishness in the last few days as it currently trades at 1.0385. The current bearish trend is expected to come to an end anytime soon, and a bullish correction may be in the making. I will illustrate below that the USD/CAD may very well be heading for a reversal. Traders are strongly advised to take advantage of the trend at an early stage.

• Point 1: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction.

• Point 2: The RSI signals that the price of this pair currently floats in the over-sold territory, suggesting upward pressure.

• Point 3: William Percents Range also supports the upward direction.

• The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue.

USD/CAD 4-Hour Chart

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

rondev1, winner of the latest traders championship shares his
trading tips with eToro’s community

____________________________________________________________

Profile

Age: 55

Country: Scotland

Family status: Married

Occupation: Care Home Owner

Experience: None

Initial deposit in eToro: $1500

Trading Mantra: Pairs

Hobbies: Football, Horse Racing

____________________________________________________________

Q: Why are you trading with eToro?

A: Nice and easy platform to use, makes trading more comfortable and gives someone with little experience, like me, the confidence to get into trading.

Q: How did you hear about eToro?

A: It was recommended to me by a friend.

Q: What is the most important lesson you’ve learned about trading so far?

A: A profit is never a profit until the trade is closed.

Q: What is the most important tip you can give to a novice trader?

A: I am a novice myself… but I would have to say: start slow and get a feel for what you’re doing, then you can start opening bigger positions and using higher leverages.

Q: Please give me a general description of your trading technique/strategy?

A: I normally trade around 5/6 pairs daily. I find that this strategy hedges any losses I might have on just one pair. If one trade ends up in a loss, it will probably be covered by the other ones.

Q: Did your Account Manager help you to improve your trading?

A: Yes he was very helpful. His advice definitely increased my overall profits.

Q: How long did it take you before you started making profits?

A: Around 2 weeks.

Q: What is your number one trading rule?

A: Stick to your targets. If you’ve set yourself an exit point, get out at that point, don’t wait for the market to turn around or to give you a bigger profit.

Q: What is the part you love most about eToro?

A: I feel very comfortable with it. I know the platform inside out and my account manager always there to help.

Q: How did you learn to trade (alone/books/course/eToro/AM/magazine/over the net)?

A: I learned to trade alone by reading some guides and then practicing with eToro.

Q: Your message to the eToro’s community:

A: Enjoy the ride, but be careful – the markets are unpredictable. So stick to your strategy and don’t let your emotions get in the way.

Q: How much profit have you made so far with eToro?

A: Around $40,000

Forex Market Interview provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.

Texas Instruments Incorporated (widely known as TI) or TXN in the New York Stock Exchange is a Texas based American company. It was reported yesterday that their $769 million dollars 2010 second quarter profit nearly tripled its earnings a year ago which is $260 million. For those who aren’t familiar with this company, they are the 4th biggest manufacturer of semiconductors, the 2nd biggest supplier of chips for cellular handsets and the biggest producer of digital signal processors world wide. They are also involved in making infrared systems, missiles, military computers and laser guided bombs. As of this year, they were listed number 223 in Fortune 500.

As a result of its good news, the stock price of Texas Instruments during yesterday’s trading session rose by 3.1% to $25.55 unlike Citigroup, where its stock price sharply fell during the release of its positive earnings result last Friday (kindly check here for my post about it). Chart-wise, I’d still consider the stocks to be moving sideways as it has been for 10 months now. It could remain to continue this way, however, if the $25.85 resistance gets breached, the stocks could start trekking north. Once it does, the next resistance could be $27.44. In case TI decides to take its journey down south, the immediate support it could encounter is $24.73. If the stock value slips and slides below that marker, the next support could be the $22.26-22.65 area.

More on LaidTrades.com …

Source: ForexYard

For the moment, anyways, the EUR continues to enjoy the spotlight while the market awaits the results of the recent stress tests. Risk appetite in the market has surged from a wave of optimism. A number of analysts have been concerned about the EUR’s sudden surge, however, since there is little to support such movement. European debt concerns remain, growth continues to lag behind expectations, and the bank stress test results are due this Friday which may reveal just how bad off the region is financially.

Economic News

USD – US Dollar under Pressure from Slow Growth

The US Dollar continues its decline against the other major world currencies. Concerns have been raised these past few weeks that the US economy is not recovering as quickly as previously anticipated. The decrease in expectations has put a damper on US investments and brought the USD down somewhat.

Against its primary rival, the EUR, the greenback has experienced gradual declines to a current price level of 1.2900. Against the Japanese Yen, the greenback has actually fallen to a 7-month low near the 87.00 price mark. The buck doesn’t appear to be fairing too well against the British Pound or Swiss Franc either.

Concerns about slowing economic growth may have increased with Tuesday’s housing reports, but today is expected to be a light news day. So long as market events continue to be ineffective at changing trends, the USD will continue its slide against the other major currencies.

EUR – Is EUR Rising Too Quickly before Stress Test Results?

The EUR has experienced irregular optimistic movements these past several weeks. Despite a string of negative news releases, the 16-nation single currency continues to make gains on rising risk appetite. Some of the largest gains have been made against the US Dollar and Japanese Yen. The EUR/USD has risen steadily in value and currently trades at 1.2900, while the EUR/GBP sits at a present value of 0.8445.

A number of analysts have been concerned about the EUR’s sudden surge since there is little to support such movement. European debt concerns remain, growth continues to lag behind expectations, and the bank stress test results are due this Friday which may reveal just how bad off the region is financially.

For the moment, anyways, the EUR continues to enjoy the spotlight while the market awaits the results of the recent stress tests. Risk appetite in the market has surged from a wave of optimism. Since the EUR-Zone isn’t expected to publish any news today there is very little chance of a reversal and traders are still taking the opportunity to join the uptrend before it comes crashing down.

JPY – Yen Trading at 7-Month High vs. US Dollar

The Japanese Yen has gradually gained against the US Dollar in this week’s trading. Asian stocks took a small hit last week, but they appear to be on the rebound as of yesterday. On the other hand, the JPY has been surging against the USD, with a current value near a seven-month low of 87.00.

Against other currencies, such as the EUR and British Pound, the Yen has experienced similar gains. The EUR/JPY currently trades near record lows of 112.50, while the GBP/JPY also sits just above its all-time low with a current price of 133.23. So long as news reports come out neutral and with few surprises, there may be a strong chance for the JPY’s current trends to continue throughout the week.

– Declining US Inventories Could Help Raise Oil Prices

The price of oil has been gradually rising this week as the US Dollar continues its decline. The volatility in the oil market appears to have subsided somewhat, following the successful capping of the gushing BP oil spill in the Gulf of Mexico. As long as the cap holds, speculators can take a more accurate gauge of market sentiment towards oil demand.

The American Crude Oil inventories report is expected later today at 14:30 GMT. Inventories have been in decline these past 2 months and if they continue to fall we could see a continued rise in price. A target near $80 this month may not be far off the mark.

Technical News

EUR/USD

Yesterday’s steep decline may have brought the pair back in range as most indicators seem to be floating in neutral territory at the moment. Looking at the daily chart, it is evident that there might still be room for a continuation of the downward trend as the RSI is still floating in the overbought territory. Waiting on a clearer direction for the pair may be advised for today.

GBP/USD

The pair seems to be range trading at the moment, with most indicators floating in neutral territory. However, there is bearish cross evident on the Weekly chart’s Slow Stochastic indicating a bearish correction might take place in the nearest future. Going short with tight stops appears to be preferable strategy.

USD/JPY

The pair has been range-trading for a while now, with no specific direction. The Daily chart’s Slow Stochastic providing us with mixed signals. The 4 hour charts do not provide a clear direction as well. Waiting for a clearer sign on the hourlies chart might be a good strategy today.

USD/CHF

The typical range trading on the hourly chart continues. The daily chart RSI is floating in neutral territory. However, there is an impending bullish cross forming on the Weekly chart’s Slow Stochastic indicating a bullish correction might take place in the nearest future. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

The Wild Card

Silver

Silver prices are once again dropping, and it is currently traded around $17.60 an ounce. And now, the 8-hour chart’s RSI is giving bullish signals, indicating that silver prices might go up. This might give forex traders a great opportunity to enter a very popular trend.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By eToro – Strong upward movements in Spanish bonds pushed the Euro higher above the 1.30 level, before profit taking moved into the market retracing all the upward momentum.  Consolidation near 1.29 will eventually lead to a higher Euro near 1.32.
Click here to read the full daily Review

Forex Market Analysis provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.

By Adam Hewison – In this short video we take an in-depth look at the euro and its
relationship to the US dollar. The recent sharp rally in the euro, up
from the 1.19 level, may be coming to an end.

We look at several indicators that are close to confirming that this
market may be set to head lower.

As always our videos are free to watch and there is no need for
registration.

Watch the New Video Now…

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

By Adam Hewison – It would appear that the euphoria over gold has quickly diminished and many of gold’s
greatest proponents, who were calling for gold to go over $2,000 an ounce, appear to
be disheartened and shell-shocked by the recent sharp downturn in gold.

There’s an old adage in trading and it goes like this, “they slide faster than they glide.”
This is true of all markets and what it means is they go down faster than they go up.

In my new video on gold, I share with you some of the thoughts I have right now on
this market. We could be looking at some great buying opportunities if just a few
components fall into place.

Watch the New Video Here..

You are more than welcome to watch this video there is no charge and no registration
requirement.

All the best,
Adam Hewison
President of the INO.com
Co-founder of MarketClub

By CountingPips.com

The Canadian dollar has gained slightly against the US dollar on the day today in forex market trading following the interest rate increase by the Bank of Canada (BOC). The Canadian currency has been mixed against the other major currencies today as the loonie has shown gains against the Japanese yen and the euro while losing ground versus the Australian dollar, New Zealand dollar and the British pound.

The USD/CAD currency pair currently trades around the 1.0520 exchange rate, down from an intraday high of 1.0586 and after opening the day at approximately 1.0543.

The Bank of Canada raised its benchmark interest rate by 25 basis points earlier today to 0.75 percent from 0.50 percent as widely expected by market forecasts. This marks the second consecutive month the BOC has increased the rate after a prolonged period of ultralow rates following the financial crisis.

The bank statement accompanying the rate decision said that the Canadian economy is on par with the bank’s expectations with growing employment and consumer spending as well as government expenditures and despite sub par business investment. The BOC’s revised economic outlook for Canada calls for growth by 3.5 percent in 2010 with growth sliding to 2.9 percent in 2011 and to 2.2 percent in 2012.

Despite today’s rate increase, the BOC statement warned on the outlook for the economic recovery saying, “The global economic recovery is proceeding but is not yet self-sustaining. Greater emphasis on balance sheet repair by households, banks, and governments in a number of advanced economies is expected to temper the pace of global growth relative to the Bank’s outlook in its April Monetary Policy Report (MPR). While the policy response to the European sovereign debt crisis has reduced the risk of an adverse outcome and increased the prospect of sustainable long term growth, it is expected to slow the global recovery over the projection horizon. In the United States, private demand is picking up but remains uneven.”

Forex chart: USD/CAD Hourly – The Canadian Loonie consolidating today against the US Dollar in forex trading following the bank to Canada’s interest rate increase to 0.75%. The USD/CAD pair is trading slightly lower for second straight day and hovers around the 50-hour moving average in purple near the 1.0525 exchange rate.  The pair had a gaining week last week that saw the USD/CAD increase from 1.0338 to 1.0577. The pair is now trading lower by approximately 50 pips for this week.

By  Forex Yard – The U.S. dollar edged lower against the yen throughout morning trading today, following a drop in risk taking ahead of a key announcement from the Bank of Japan (BOJ). Investors are cautiously awaiting a decision on whether the BOJ will intervene to limit yen growth. Japan is an export driven economy, meaning a strong yen limits the volume the country is able to sell. USD/JPY, currently trading around the 86.85 level, is still fairly close to the 7-month low the pair hit last week. The greenback appears to be fairing slightly better against the euro. EUR/USD has dropped some 100 pips since this morning, and is currently trading around the 1.2900 level.

In addition to the BOJ statement, traders will want to pay attention to the U.S. Building Permits report at 12:30 GMT as well as the Bank of Canada Rate Statement at 13:00 GMT. The U.S. economy has seen a string of negative news events over the last few weeks. Should the new building permits number come in above the forecasted 0.57M, the greenback could stage an afternoon rally against the yen. Analysts are predicting the Bank of Canada to raise overnight rates from 0.50% to 0.75%. If true, the loonie will likely see some gains against its main counterparts in afternoon and evening trading.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

In a light trading day, the dollar was higher against most of the majors, with the lone exception being the euro. Risk aversion was lower as traders shrugged off the downgrade of Ireland’s credit rating as U.S. equities finished higher despite negative housing data from the U.S. economy.

Economic News

USD – Greenback Rises with Equities

The Dollar strengthened yesterday following a decrease in risk aversion. A firmer greenback came despite a weaker than expected NAHB Housing Market Index. The index which measures the outlook on home sales fell to 14 despite market expectations of a second consecutive output of 16.

The GBP/USD finished lower at 1.5220, following an opening price of 1.5306. The USD/CHF was up to 1.5045 after opening the day at 1.4071. The USD/JPY was relatively unchanged at 86.70.

U.S. Equity markets finished marginally higher despite a wave of negative fundamental news from Europe. The Dow Jones Industrial Average ended the day up 0.5%. Ireland’s sovereign credit rating was cut by Moody’s rating service as well as Hungary’s rejection of further austerity measures.

Today’s trading should see higher volumes with a glut of news on the economic calendar. Driving the dollar will be the release of U.S. building permits which are expected to come in at 0.57M. Strong numbers could help the dollar to continue to strengthen against the majors. The next support for the GBP/USD rests at the level of 1.5200, yesterday’s low for the pair. Additionally, the Canadian Overnight Rate report could heavily influence the USD/CAD when it is released at 13:00 GMT.

EUR – Moody’s Downgrades Ireland’s Sovereign Debt

The EUR continues to strengthen versus the dollar, despite a wave of negative fundamental news from the euro zone and the periphery. Yesterday, Moody’s Investor Service downgraded the sovereign debt rating of Ireland, noting a high debt burden, a struggling banking sector, and slowing economic growth. Also weighing over yesterday’s trading was a breakdown in negotiations between the IMF and Hungary. Negotiators for the IMF walked away following Hungary’s refusal to accept strict austerity measures.

Despite the negative fundamental news from Europe, the EUR traded higher versus the dollar, finishing the day up at 1.2935, from an opening day price of 1.2902. The EUR/GBP was also higher, trading near the 0.8500 mark after opening at 0.8428.

Tomorrow will bring the release of German inflationary data in the form of the monthly PPI numbers. The release is forecasted to come in at 0.2%. An output on par with market expectations may bring a muted impact. But a number below the forecasted value could hurt the euro as global deflationary fears are beginning to surface. As such, traders should look to other data for direction in euro pairs. Further bullishness may be seen in the EUR/USD as the pair approaches the resistance level of 1.31.

JPY – Potential Intervention by the Bank of Japan?

The Japanese yen continues to strengthen. Persistent worries about strengthening versus the dollar, euro, and pound may bring about a round of intervention by the Bank of Japan (BOJ). Possible steps that would be considered by the BOJ would be purchases of government securities. Intervention could be likely, should the USD/JPY rate fall below the 85 level. A strong yen hurts Japan’s export dependant economy by making exporters’ goods more expensive and less competitive in the global marketplace.

Yesterday the USD/JPY traded relatively unchanged at 86.70.

The USD/JPY has been trending lower for the past 3-months but is showing some technical signs for a short term reversal. Friday’s trading ended with a spinning top candlestick pattern and a bullish cross is forming on the daily chart’s slow stochastic oscillator. Traders may want to cover any short positions they may have as a pullback may occur to the next resistance level at 88.

Crude Oil – Spot Crude Oil Flirts with 200-Day Moving Average

Crude Oil prices rebounded yesterday following 2 consecutive days of losses for the commodity. Driving the price higher were reduced risk aversion and gains in equity markets.

Spot Crude Oil prices finished the day at $77, following an opening day price of $76.14. The price reached a high of $78.13 before weaker than expected U.S. housing data influenced traders to reduce their exposure to riskier assets.

Range trading of the commodity has been predominant between the prices of $70-$80. The price of spot Crude Oil has flirted with the resistance level of $78 since last week, unable to breach this mark. This level also coincides with the 200-day moving average line. A breach above this level could propel spot Crude Oil to the next resistance level near $80.

Technical News

EUR/USD

The Slow Stochastic on the daily chart shows a bullish cross has formed, indicating that the pair may be in overbought territory. Typically, this is a sign that a downward correction is imminent. This theory is supported by the Relative Strength Index on the 8-hour chart. Traders may want to go short with tight stops today.

GBP/USD

While the Slow Stochastic on the 8-hour chart shows a bearish cross has formed, typically a sign of impending upward movement, most other indicators show this pair trading in neutral territory. Traders may want to take a wait and see approach today, as a clearer picture may present itself in afternoon trading.

USD/JPY

The Relative Strength Index on the 8-hour chart indicates that the pair is currently in oversold territory. This theory is supported by the Slow Stochastic on the daily chart which shows a bearish cross has formed. Going long may be the preferred option today, as an upward correction could occur.

USD/CHF

While the Relative Strength Index on the 4-hour chart shows the pair approaching overbought territory, most other indicators are looking inconclusive. Traders are advised to wait for a clearer picture to present itself before entering into any positions today.

The Wild Card

EUR/AUD

Several technical indicators are showing that this pair is due for a downward correction in the near future. The Relative Strength Index on the 8-hour chart shows the pair in overbought territory. The Stochastic Slow on the daily chart shows a bullish cross has formed. For forex traders going short with tight stops today may be the preferred strategy for this pair.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.