AUDUSD’s upward move from 0.9704 extended to as high as 1.0227. Now the pair is facing 1.0255 (Dec 31, 2010 high) resistance. Minor consolidation would likely be seen before breaking above this level. Support is at 1.0130, below this level will indicate that consolidation of uptrend is underway, then the pair will find support at 1.0050. On the upside, if 1.0255 resistance gives way, next target would be at 1.0400 zone.
Shares of Google (GOOG) are higher. Bloomberg reports that the company could face possible antitrust investigations in Wisconsin and Ohio over its business practices, citing people familiar with the matter. Google shares are up 0.37%, or $2.14, to $584.30.
By Justice Litle, Editorial Director, Taipan Publishing Group, taipanpublishinggroup.com
An arcane theory known as “the J curve” explains why Saudi Arabia could be the next domino to fall.
If someone presses you as to why the Middle East will explode — and why crude oil could reach $200 a barrel — tell them about the J curve.
The J curve is the brainchild of Ian Bremmer, the president of Eurasia Group. In his book, Bremmer describes it as “a new way to understand why nations rise and fall.”
Imagine the letter J on a graph, tilted to the right at a 45-degree angle. The up-and-down y-axis on the graph represents “stability.” The left-to-right x-axis represents “openness.”
According to the J curve, there are two kinds of stability — “closed” and “open.” The United States is the paramount example of a society that is both stable and open — up and to the right on the J curve graph. The enduring power of America’s institutions, coupled with free speech and retained wealth, means that the U.S. can (as a general rule) admirably endure change.
North Korea, in contrast, is an example of stability that is “closed.” Countries like North Korea — or Tunisia once upon a time — rely on the constant pressure of force and a sense of being cut off from the outside world. These countries are stable in the manner of a prison lockdown. Such a setup is brittle, but can last for decades.
Going back to the graph, “stable but closed” countries reside on the left-most tail-tip of the tilted J. “Stable but open” countries are at the other end, up high where the line extends out.
The core message of the J curve is this: To pass from “closed” to “open,” stability must decline… sometimes violently so.
The dip in the curve (and the reason for the J shape) represents a drop in stability. Countries that wish to transition from “closed” to “open” — as the whole Middle East now yearns to do — must pass through that dip.
Eric Hoffer, a self-educated longshoreman turned philosopher, expressed a similar idea much earlier. In his book The True Believer, published in 1951, Hoffer describes how iron-fisted leaders face the most danger when their grip first loosens — not when it is tight.
The gist is that a populace without freedom becomes accustomed to its “stable” state. There is a weary resignation as life plods on. But give that populace a small taste of freedom — an inkling of what could be had — and suddenly new desires are alighted.
The catch-22 here is that brutal dictators can never really let up if they hope to hang on to power. Once they do, the small concessions they offer will only incite greater hunger… and greater anger. Upon realizing Pandora’s box has been opened, the desire is then to slam it shut. But sometimes this can’t be done…
Moving back to Saudi Arabia — the irony of current events is that Libya is a sideshow, at least as far as the price of crude oil is concerned.
While true that Libya’s crude oil is prized because it is “light” and “sweet,” the country’s 2% contribution to world oil supply is not a global growth deal breaker. And at the same time, Libya had already been taxing oil companies in the region very heavily, reducing profits to the thinnest of margins. So big oil may not see a meaningful dent if Libyan barrels go offline.
Saudi Arabia, though, is another story entirely. And along with the house of Saud, there is the prospect of another producer in Libya’s range — like Algeria for instance — catching the revolution bug. Unrest in Libya thus has a sort of “last domino” quality… if even one more falls, all hell could break loose.
When we look to Saudi Arabia, the signs are not encouraging. The Saudis have sent troops into neighboring Bahrain, opening fire on protesters. The battle of Sunni Muslim versus Shia Muslim seems to be gearing up, with Saudi Arabia’s nemesis Iran quietly moving chess pieces on the other side of the board.
And in Saudi Arabia itself, we see the royals doing just what Bremmer and Hoffer warn against in their various analyses. The iron-fisted leaders are loosening their grip. They are trying to buy off the protesters with bribes… insinuate promises of more freedom at the margins… and otherwise bring about cosmetic changes that could have the net effect of waving a bloody steak in front of a pit bull.
As The Wall Street Journal reports,
Saudi Arabia’s King Abdullah announced a new round of lavish public spending and enhanced benefits for Saudis, but hinted at stern measures against any would-be protesters in the conservative Islamic kingdom.
The head of the world’s largest oil exporter said in a series of royal orders Friday that he was introducing a minimum wage and unemployment benefit for Saudi nationals, creating 60,000 military jobs at the Interior Ministry, addressing a chronic housing shortage with a building drive and creating a new government department to tackle corruption. He also announced more than a billion Saudi rials of spending on religious projects.
Speaking live on state television, he thanked Saudis for staying loyal to the regime after they shunned a recent call for demonstrations issued on Facebook.
All of that sounds good in theory. But if the transition from “closed” to “open” is any guide — as based on the historical track record of closed countries passing through the J curve — expensive bribes will not be enough.
(Then there is also the factor of concealed interests, such as Iran, actively seeking to stir up Shia unrest.)
This is why the “Arab spring” comes at such an inopportune time for the global economy. A mass transition from closed toward open — for a volatile region of the world where so much oil is produced — all but guarantees violence and turmoil. Those leaders holding on to power will not go quietly. When bribes do not work, they are more likely to spill blood… and use their treasure hordes to fight long and protracted wars, as Gadhafi plans to do.
So far, we have been able to handle a Libyan civil war coming out of nowhere. But the next oil producer domino to fall — be it another modest-sized one or the house of Saud, the biggest domino of them all — could truly set the oil market ablaze. The J curve helps us see why.
As a side note — what do you think of American involvement in Libya? Taipan Daily readers were fiercely on the side of “Egypt for Egyptians” earlier this year, when the question was whether America should support a dictator (Mubarak) or stand aside and let him topple.
But now that we are dropping bombs on Libya in a supposed humanitarian mission (much as we did in Iraq)… with no clear plans to depose Gadhafi or take control, and with no clean sense of who the “rebel interests” really are (Iraq again)… what say you? Share thoughts and opinions here: [email protected].
Editor’s Note: You could get $4,000 from an “angel” before the end of April. While alive, she was one of the most charitable people in America. Some have even called “Mary Catherine” an “angel.”
Now, her estate is set to distribute the nearly $9.4 billion left over in her estate. Learn how you could get your hands on a small portion of it from this exclusive investment report.
About the Author
Justice Litle is the Editorial Director of Taipan Publishing Group, Editor of Justice Litle’s Macro Trader and Managing Editor of the free financial market news e-letter Taipan Daily. Justice began his career by pursuing a Ph.D. in literature and philosophy at Oxford University in England, and continued his education at Pulacki University in Olomouc, Czech Republic, and Macquarie University in Sydney, Australia.
Aside from his career in the financial industry, Justice enjoys playing chess and poker; he enjoys scuba diving, snowboarding, hiking and traveling. The Cliffs of Moher in Ireland and Fox Glacier in New Zealand are two of his favorite places in the world, especially for hiking. What he loves most about traveling is the scenery and the friendly locals.
By CountingPips.com
Durable goods orders fell unexpectedly in the month of February and marked a decrease in new orders for three out of the last four months, according to a report released by the U.S. Commerce Department today. New orders for durable goods orders declined by 0.9 percent or by $1.9 billion to a seasonally adjusted total of $200.0 billion in February. Today’s report follows a revised increase of 3.6 percent in new orders for January. Contributing to the slowdown in orders was a 24.8 percent decrease in new orders for defense capital goods while 
machinery orders fell by 4.2 percent.
Durable goods are assets that are generally considered to last more than three years.
Today’s data came in worse than market forecasts that were expecting durable goods orders to increase by approximately 1.2 percent for the month.
New orders for durable goods, excluding transportation, also came in worse than expected and fell by 0.6 percent in February following a decrease by 3.0 percent in January. Market forecasts were looking for a gain by 2.0 percent in the durable goods minus transportation category.
Shipments of durable goods rose by 0.7 percent while unfilled orders increased by 0.4 percent and has been up for 10 out of the last 11 months. Durable good inventories increased for the 14th consecutive month with a rise of 0.9 percent while February nondefense orders for new goods advanced by 2.5 percent and defense orders for capital goods dropped by 24.8 percent to a total of $8.3 billion.
US Weekly Jobless Claims edge lower by 5,000
A government release today by the U.S. Labor Department showed that weekly U.S. jobless claims edged slightly lower in the week that ended on March 19th. New jobless claims fell to a total of 382,000 unemployed workers, a decrease from the prior week by 5,000 workers. This decline almost matched market forecasts predicting the fall to 383,000 claims.
The 4-week moving average of initial unemployed workers dipped by 1,500 from the prior week to a total of 385,250.
Meanwhile, workers seeking continuing claims for unemployment benefits for the week ending on March 12th declined by 2,000 workers to a total of 3,721,000 unemployed workers. The four week moving average of continuing claims fell lower by 28,000 workers to a total of 3,750,250.
FOREX: US Dollar on the decline today, Stocks rising higher
The U.S. dollar has been trading lower in forex trading today against the other major currencies while the U.S. stock markets have been higher for the day. The dollar has fallen today versus the euro, Canadian dollar, Japanese yen, Australian dollar and the New Zealand dollar while the American currency has increased versus the British pound sterling, according to currency data by Oanda. The Japanese yen is currently trading close to unchanged versus the American currency in forex trading action.
The U.S. stock markets, meanwhile, have gained today with the Dow Jones rising by over 70 points, the Nasdaq increasing over 30 points and the S&P 500 up by over 8 points at time of writing.
In commodities, oil has a dipped by $0.23 to $105.52 per barrel while gold futures have edged higher by $1.60 to the $1439.50 per ounce level.
Morgan Stanley raised its 2011 and 2012 EPS estimates for ConocoPhillips (NYSE:COP) and maintained its underweight rating and $70 price target. The bank now sees 2011 EPS of $7.40, up from $6.82 per share, and 2012 EPS of $7.73, up from $7.64 per share. ConocoPhillips is currently above its 50-day moving average (MA) of $73.55 and above its 200-day of $62.02.
By Chris Vermeulen, thegoldandoilguy.com
Equities and Precious Metals are on the edge of another rally and it could start as early as tomorrow.
On March 13th I posted some of my analysis online showing how the market was trading at a key pivot point and that a sharp price movement was about to unfold. I also provided everyone with the direction in favor which played out perfectly catching a 4.5% in three days.
As of today we are getting the same setup I saw on March 13th, but this time it’s pointing to higher prices. Take a quick look at the charts I was looking at for both the SP500 and gold and you will notice that the SP500 and gold both moved to the support levels before starting to bounce: http://www.thegoldandoilguy.com/articles/it%E2%80%99s-do-or-die-week-for-equities-and-gold/
While we caught the move down on the SP500 playing the SDS Double leveraged inverse fund we did not take part in falling gold prices. Reason being, there is so much fear in the market and the amount of surprise news popping up each week I don’t think shorting precious metals is a safe call. Rather I am looking for a pullback to cleanse the holders of the commodity then I will buy once price confirms the continuation pattern has completed.
Now, stepping forward to this week’s price action
SPY Daily Chart
We can see in the chart below that price is currently testing a key resistance level. Before the week is over we could see some big price movement equities. I need to see what happens tomorrow but I have a feeling we could see a breakout to the upside for a long position.
Gold Miners Fund Daily Chart
Gold stocks have be under performing the price of bullion for a few months but it looks as though they could be starting a sizable rally. If gold stocks continue to move sharply higher out of this pattern, then it’s a positive sign that gold and silver bullion will both continue to move up.
Gold Daily Chart
Gold is testing a key resistance level and if it breaks above this pattern then expect much higher prices. I can see GLD moving up $5 from this level and gold futures moving up $60 per ounce fairly quickly.
Mid-Week Trend Report:
In short, stocks and commodities may have shaken the weak positions out of the market during the recent pullback in price. Things could be ready to start another multi month rally and trade setups. Keep your eyes on the charts…
Chris Vermeulen
Forex Pros – The Canadian dollar rose to a two-day high against its U.S. counterpart on Thursday, as crude oil, Canada’s largest export, remained well supported by ongoing unrest in the Middle East and Libya.
USD/CAD hit 0.9758 during early U.S. trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 0.9764, shedding 0.52%.
The pair was likely to find support at 0.9733, the low of March 15 and resistance at 0.9843, Wednesday’s high.
Crude oil contracts for delivery in May were trading at USD 105.69 a barrel on the New York Mercantile Exchange, after peaking at USD106.65 earlier in the day.
The Canadian dollar shrugged off the prospect of a looming election, after opposition party leaders said that they would not support Prime Minister Stephen Harper’s 2011-2012 budget, but would force a non-confidence vote against the government this week.
The loonie was also up against the euro, with EUR/CAD slipping 0.15% to hit 1.3803.
Meanwhile, the U.S. Commerce Department said earlier that durable goods orders fell 0.9% in February, confounding expectations for a 1.8% gain.
In a separate report, the U.S. Department of Labor said initial jobless claims fell slightly more-than-expected last week.
Forex News Provided by:
ForexPros.com
Forex Pros offers a diverse set of professional tools for Forex, Futures and CFDs. These include real-time data streams, technical and fundamental analysis by in-house experts, and a widely used economic calendar.
By Sara Nunnally, Editor, Smart Investing Daily, taipanpublishinggroup.com
You may have already received a letter from Michael Robinson introducing you to his new service, 180 Trader. (You may know Michael as the editor of American Wealth Underground.) In his letter, he talks about something called “T-Gems” and he’s cornered a way you can harness their power to make a small fortune for yourself.
What are T-Gems, exactly, and should you be investing in them?
During the financial crisis, we watched helplessly as good companies lost massive chunks of their share prices right alongside companies that were actually struggling.
We watched valuations disappear faster than an ice cube in the noonday sun.
This made everything look cheap, and the market rally since the start of the recovery has made even bottom-feeding investors look like geniuses.
In other words, the sharp drops in share prices created a lot of opportunities, but not all are worth investing in… and some offer vastly better returns than others. That’s why I found Michael Robinson’s letter so intriguing. His 180 Trader service seeks out these beaten-down stocks to find turnaround companies, or T-gems.
But he doesn’t just pick any old stock that’s lost some 95% of its share price.
He has a system, and we at Smart Investing Daily like systems. They can be analyzed and tested to see if they actually work, or if they’re just a bunch of baloney.
Michael gave us his criteria for weeding out the cheap companies from the true turnaround gems:
Turnaround Key #1: They Aren’t Really Broken! They only appear that way because their stock price is low and they may be receiving negative press. I won’t consider recommending a company that is not fundamentally and financially sound.
Turnaround Key #2: They Have a Major Dominant Advantage. The company must also possess a dominant advantage in its own industry sector. Maybe they have a patent. Or maybe a major contract. Or maybe they have a powerful brand that wipes out the competition.
Turnaround Key #3: Minor Flaw Caused 90% Plunge From Normal Price Levels. There is usually a minor flaw that sets off the selling. Could be too much short-term debt. Could be overextended operations. Could be the company missed their earnings target by a couple pennies. But it must be only a minor problem.
Turnaround Key #4: The Big Money Is Quietly Buying! Once the big firms start to realize that a company is financially sound and has upside potential, they jump back in very quickly. They pour big money into a stock, lifting it back to normal price levels.
Turnaround Key #5: “The Triple-Cross” Buy-Signal Flashes. I use a proprietary indicator known as the “Triple Cross.” This signal is rare. It requires three technical indicators to converge. Again, this doesn’t happen often, but when it does, it is a near-certain signal that a stock is beginning an explosive bolt upward.
We’ve talked about buy signals here in Smart Investing Daily before. There are many of them, and each analyst has their favorite combination that they’re pretty possessive about. It’s kind of like a secret recipe.
The “Triple Cross” deals with specifically calibrated moving averages that indicate when a stock is gaining enough momentum to rise more than 100%.
We’ve told you that a moving average is the average price of a stock over a certain period of time. So, for example, a 20-day moving average tracks the last 20 days of a stock’s share price. Moving averages are useful to measure the momentum of a stock because they smooth out the everyday share price movements.
(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levy simplify the stock market for you with our easy-to-understand investment articles.)
In general, a rising moving average indicates rising momentum, and a falling moving average indicates falling momentum.
But the use of more than one moving average can give you a powerful indicator with buy and sell signals when one moving average crosses another. This is what the “Triple Cross” is doing — using more than one moving average and watching where they cross.
T-Gems, though, require more research than a technical buy signal, and that’s where Michael’s other “Turnaround Keys” come in. They are just as important, perhaps even more so, depending on what kind of investor you are.
Michael says that turnaround companies show “absolutely stunning gains, as much as 1,000%… 1,700%… even 3,400%… on a regular basis. But I’ve been unable to recommend these stocks to my 9,500+ American Wealth Underground subscribers.”
Here’s why.
When these companies are so beaten down that they are trading for $1 or $3 a share, even highly liquid stocks can have volatile share price movements at the bottom.
We’ve talked about something called Average Dollar Volume (ADV) here before. You multiply the share price by the daily volume to find ADV. So for example, if Company X is trading for $2 a share with a daily volume of 250,000, the ADV is $500,000.
That’s not a very high ADV, which means that someone with a large trading account can buy a lot of shares and move the price very easily.
More conservative investors tend to look for investments with an ADV higher than $1 million just to be on the safe side.
And that’s why T-Gems might not be appropriate for everyone.
That’s also why Michael hasn’t been able to recommend these companies to his large base of American Wealth Underground subscribers. But for the right investor they can make incredible returns. And for Michael’s new service called 180 Trader, they’re perfect.
Michael’s 180 Trader will be a small and select group of traders. Being small allows for a greater number of opportunities with these turnaround companies. A large group like American Wealth Underground would be able to shift share prices too much.
If you haven’t read Michael’s letter about 180 Trader yet, it’s something you should take the time to do. I was able to read through it in less than 10 minutes, and as someone who loves a spot-on technical signal as much as the gritty details of fundamental research, I have to say that I was impressed with the system Michael uses to weed out the cheap stocks from the potential T-Gems.
*Editor’s Note: If you can’t find the letter Michael sent you about 180 Trader, you can access my copy here.
About the Author
Sara is Managing Editor of Smart Investing Daily. As Senior Research Director and global correspondent, Sara Nunnally’s diverse resume includes studies in art history, computer science and financial research. She has appeared on news media such as Forbes on Fox, Fox News Live, and CNBC’s Squawk Box, as well as numerous radio shows around the country. Most recently, Sara co-authored a book with Sandy Franks called, Barbarians of Wealth.
As Senior Research Director, global correspondent and managing editor of Smart Investing Daily, Sara has traveled all over the world in search of the best investment opportunities to recommend to her readers, be they in developed economies like France and Italy, in emerging markets like the Czech Republic and Poland, or in frontier terrain like Vietnam and Morocco. Her unique “holistic” approach of boots-on-the-ground research has given her an edge in today’s financial marketplace as she searches for the next investment opportunities in hot sectors like alternative energy, currency markets and commodities.
– Rise Against: Re-Education (Through Labor) –
Before getting into the broader markets, I thought it was pertinent to share with readers that recently I have noticed a trend in alternative music, also known as modern rock. As a fan of music in general, I have noticed that more modern and mainstream music is starting to underscore the deterioration in social mood. Mainstream songs are having a resoundingly similar lyrical undertone which outlines the “us against them”, “rich versus poor”, and the political class versus everyone else.
While I am not a sociologist nor do I have any real training in the area, the underlying tone in a lot of artistic mediums highlights the current chasm between the haves and the have-nots. While some might argue that it does not matter, if you as a reader, trader, or investor believe in behavioral finance you might agree that social mood matters a great deal. After all, the entire premise of technical analysis is an attempt to quantify market participant behavior at specific price levels.
Social mood is but one catalyst that can have a dramatic impact in price discovery, and thus must at the very least be monitored. Current music trends are literally screaming loud and clear that the average American can relate to the undertones and messages of song lyrics with the same resounding tone as the Rise Against lyrics listed above. Believe me, it may not matter right now, but it will matter and when it does it will likely be too late for financial markets.
Now that I have my little rant out of the way, why don’t we take a look at where the S&P 500 has been, where it is now, and where it might be going. Currently price action in the S&P 500 is sitting on the edge of a fence. We could be looking at an intermediate bottom or it could end up being a bull trap. As for me, my recent prediction for lower prices has indeed come to pass, but from hereon I have no real idea where price action is headed. Mr. Market is leaving a few clues behind which I will outline, but anything is possible. We have seen stocks climb a wall of worry for nearly two years now so there is precedent for a rally from this current point of indecision.
The daily chart of the S&P 500 listed below illustrates key technical levels on the daily chart, however readers will notice that we are currently caught between a ton of overhead resistance and a key support level. Until we see price move in either direction with volume confirmation, I will be sitting on the sidelines.
Another key chart to consider is the SPX weekly chart. A quick glance at the slow stochastic readings at the bottom of the chart reveal that the S&P 500 might have additional downside left before the market is able to form a solid bottom. If that is true, we could see the SPX test the 200 period moving average on the daily chart which would be around the 1186 price level. Additionally, the 50 & 200 period moving averages on the weekly chart correspond with the 1180 price level which is likely not coincidental. The level also corresponds with key resistance areas going back to the November 2010 lows. While a downward move that large seems a bit extreme to me at this point, anything is possible.
As can be seen from the chart above, price action is currently sitting above the 20 period moving average on the weekly SPX chart. Key support levels are around the 1225 and 1180 price levels. I would also point out that a Fibonacci retracement of the recent pivot high to the recent pivot low gives us a possible 1.618 retracement around the 1190 price level. Additionally, the slow stochastic on the chart above is eerily similar to levels that were seen on the weekly chart back in May of 2010. Will price action work lower? Will the weekly slow stochastic reading kiss the 20 level?
At this point, a few of you might think I’m outlining the case for lower prices in the equity market. I honestly have no idea where price is going from here, I’m just outlining some key aspects that I have found in my analysis to the downside. The upside is just as likely and we could see the SPX price bounce off of the 20 period moving average on the weekly chart and a challenge of the recent highs could play out. Should recent highs give way to breakout, the SPX would likely test the 1,400 price level at some point in the future.
If we look at the VIX for any clues, all that can be seen from that chart is a spike higher and a subsequent selloff as fear and uncertainty leave the marketplace. The VIX is currently arguing for higher prices in equities, however the financials represented by XLF are the fly in the proverbial ointment. The banks were unable to attract a bid on Monday’s strong advance and they experienced additional selling pressure on Tuesday.
In fact, the XLF’s daily chart shown below reveals a key test and subsequent failure.
A quick look at the XLF daily chart and it is rather obvious that price action in XLF has been weak in the past two sessions. Price moved higher off of the recent lows, tested the 20 period moving average and rolled over. Price is currently below key support levels, but we could witness a reversal on Wednesday. I am going to be watching the financials (XLF) quite closely in coming days as I believe the banks will provide traders with clues as to which direction Mr. Market is favoring. Right now it would appear that Mr. Market is favoring lower prices, but that would seem a bit too easy from these eyes.
We could consolidate at these price levels for a period of time. The volume on Monday and Tuesday was light and we have non-confirming signals showing up in a variety of underlying indices. I am unwilling to accept any directional risk at this point. I will let others do the heavy lifting while I sit safely in cash and watch the price action play out.
The price action will eventually give us a confirming signal as to which direction prices will be heading, but right now I believe the prudent thing to do is remain in cash and wait for Mr. Market to signal which direction he favors. We are either sitting at the beginning of a major move higher or we are at a precipice and prices are about to plunge. Either way, risk remains high and the risk / reward is simply not there to warrant an entry. As I have said many times, sometimes the best trade is no trade at all!
Get My Trade Ideas Here: www.optionstradingsignals.com/profitable-options-solutions.php
JW Jones
By Russell Glaser
Political strife in Canada may bring weakness in the value of the Canadian dollar allowing for traders to find entry opportunities near a key moving average.
The unveiling and subsequent rejection of the Canadian budget by three opposition parties does not bode well for continued strength of the Loonie. Despite the currency’s strong performance, the political gridlock may bring a pullback in the current downtrend for the USD/CAD.
Moving to the daily chart, the pair has found significant resistance near the 100-day moving average (red line) which comes in today at 0.9930. This level may offer traders a good entry point into the downtrend. Also providing resistance has been the 50-day moving average (green line) at 0.9840. Further resistance may be found at the January high of 1.0060.
Targets for the pair should be Friday’s low of 0.9750, followed by the all-time low for the pair at 0.9666.
Forex Market Analysis provided by ForexYard.
© 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.
