Reviewed Forex Trading

USD Dollar (USD) The US Dollar strengthened versus most major currencies on a statement from the Fed Chairman, Bernanke, who said earlier at the FOMC that there is no need for a QE3 at the moment. The TIC Long-Term Purchases came out at 17.9B worse than the expected 62.3B and Industrial Production (MoM) came out 0.0% worse than expected at 0.7%. The stock market closed negative as the Dow Jones fell by 0.76% and the NASDAQ fell by 0.55%. Crude oil rose by 1.10% after crude oil inventories came out less than expected on false news about Iran halting the supply of crude oil to six European countries. Later, however, the Iranian government published a notice denying this was true. At the end of the day crude oil closed at $101.80 a barrel. Gold (XAU) rose by 0.4%, or $10.40, after 4 days of decline and closed at $1728.1 an ounce. Today, the Housing Starts are expected to come out at 0.68M vs. 0.66M previously and initial jobless claims are expected to come out at 3550K vs. 3515k previously. The Fed Chairman, Bernanke, will speak.

Euro (EUR) – The Euro fell versus the Greenback as Greek Finance Minister, Evangelos Venizelos, accused certain Euro area nations of wanting Greece to leave the union.  The German Prelim GDP came out at -0.20% better than the expected -0.30%. The EUR/USD’s momentum is negative below the 1.3150 level and as long as the pair is trading below this level, the Euro may continue to weaken. Overall, the EUR/USD traded with a low of 1.3006 and with a high of 1.3190. Today, the ECB monthly report is expected.

EUR/USD – Last: 1.3020

British Pound (GBP) – The Pound closed unchanged versus the US Dollar after the Claimant Count Change came out at 6.9K vs. 3.2K previously and the Unemployment Rate remained unchanged at 8.4%. The GBP\USD’s momentum remains bearish below the 1.5770 level. The next support level on the 4 hour chart is located at 1.5650 and breaking this level will probably cause the Pound to decrease toward the 1.5600 level. Overall, the GBP/USD traded with a low of 1.5662 and with a high of 1.5735. Today no major economic data is expected to be released.

GBP/USD – Last: 1.5672

Japanese Yen (JPY) – The Yen closed unchanged against the Dollar after it fell to a three-month low versus the Dollar after the Central Bank increased its asset-purchase fund to 30 trillion Yen, expanding economic stimulus measures for the first time since October. The USD/JPY’s momentum is bullish as long as the pair is trading above the 77.80 level. Overall, the USD/JPY traded with a low of 77.17 and with a high of 78.65 No economic data is expected to be released today.

USD/JPY-Last: 78.40

Canadian dollar (CAD) – The Canadian dollar slipped from its highest level in almost a week versus its US counterpart on speculation that an aid package for Greece may be delayed until after it holds elections this year, damping appetite for riskier assets. As long as the pair is trading below the 1.0040 level, the US Dollar’s momentum remains negative. Overall, the USD/CAD traded with a low of 0.9937 and with a high of 1.0028. Today, Manufacturing Sales (MoM) are expected to drop from 2% to 0.50%

USD/CAD – Last: 1.0019

Foreign exchange market is a challenging world for the traders of the market. Trading forex currency is not an easy task for the traders. To trade forex successfully, they have to boo very much careful and cautious. They should be alert and careful to analyze the market problems and the fluctuations of the market where as they should be cautious for the forex risks, the scams, the traps and the losses which effects the trading very badly.

It’s a huge financial market where lots of traders trying their luck every time. Some of them are talented and they have good knowledge about forex currency trading but some of them are trading without having strong knowledge of forex and without any planning and strategies.

The first kind of the persons are those who gets success in trading currency because their investment is always according to the demand and the need of the market but the second kind of the persons are those who face the loss because of their inexperienced performance and trading mistakes.

They made mistakes because their knowledge if trading forex is not good. Thus they have to perform well and for this, they have to learn forex trading. Forex learning is very much essential for those who are the starters and who don’t have enough knowledge of trading forex currency. Every one can make money in this market if they have goo knowledge and trading skill, only having knowledge is not enough but they have to trade with good understanding and skill.

USD Dollar (USD) – The US Dollar posted minor gains against the major currencies as another day passed without a definitive announcement on the Greek debt. Investors are waiting to hear about a decision on Greek political negotiations over austerity measures to secure a bailout from the Troika (the Monetary Fund, European Union and European Central Bank) and avoid a debt default. Wall Street struggled to close on the positive side as the Dow Jones gained by 0.04% and the NASDAQ appreciated by 0.41%. Crude oil spiked up to the $100 area, but failed to sustain those levels and closed with slight gains of 0.3% at the $99 levels. Gold (XAU) also failed to break above the $1751 zones and decreased by -1% to close at $1731 an ounce. Today, the Unemployment Claims are expected at 380k vs. 367k previously.

Euro (EUR) – The European currency climbed to a 7 week high against the US Dollar although it was fluctuating within a narrow range of 70 pips as worries remain over whether or not Greece will agree to the Troika demands. Greek leaders have agreed on a draft deal on austerity measures demanded by the Troika to secure a €130 billion bailout. The EUR/USD’s momentum is positive above the 1.3200 level and as long as the pair is trading above this level, the Euro may continue to rise. It will probably break up at the next resistance level of 1.3320. The RSI indicator on the daily chart supports the uptrend. Overall, the EUR/USD traded with a low of 1.3214 and with a high of 1.3287. Today, the Interest Rate Decision is expected unchanged at 1.00% and shortly after the ECB Press Conference is expected.

EUR/USD – Last: 1.3256                

British Pound (GBP) – The Pound slumped versus the Greenback during the New York session and dropped more than 130 pips against the Dollar as global investors awaited a decision on whether Greece’s political leaders will agree to conditions required for a second international rescue package. The momentum of theGBP\USD remains bullish above the 1.5730 level. The next resistance level on the daily chart is located at 1.6000 and breaking this level will probably cause the Pound to increase toward the 1.6040 level. Overall, theGBP/USD traded with a low of 1.5794 and with a high of 1.5927. Today, the Manufacturing Production is expected at 0.3% vs. -0.2% previously. The Interest Rate Decision is expected unchanged at 0.50% and shortly after the MPC Rate Statement is expected as well.

GBP/USD – Last: 1.5814

Japanese Yen (JPY) – The Dollar posted another positive day against the Yen and the pair recovered to the 77 levels. The Core Machinery Orders came out at -7.1%, worse than the expected -4.8%. The USD/JPY’s momentum is bullish as long as the pair is trading above the 76.50 level and the next resistance level is located at 77.30. Overall, the USD/JPY traded with a low of 76.69 and with a high of 77.17. No major economic data is expected to be published.

USD/JPY-Last: 77.18

Canadian dollar (CAD) – The Canadian Dollar decreased versus its US counterpart before the Greek leaders’ decision on bailout terms. The Housing Starts came out at 198k better than the expected 193k. As long as the pair is trading below the 1.0000 level, the US Dollar’s momentum is still negative. The next support level on the one hour chart is located at the 0.9920 level and breaking this level will probably cause the pair to decrease towards 0.9870. Overall, the USD/CAD traded with a low of 0.9933 and with a high of 0.9988. Today, the NHPI is expected at 0.2% vs. 0.35 previously.

USD/CAD – Last: 0.9960