Forex and Trading News

Apr 29, 2012

Watch the latest analysis of the GBP/USD, EUR/USD Forex pairs for the upcoming April 30th session in this video. GBP/USD — is a currency pair that simply hasn’t stop gaining lately. If you haven’t had a chance to enter the trade, you would simply be chasing it at this point in time. We have been straight up for couple of weeks. As such many traders have missed out on this move higher. Looks ironic with this move, UK has entered into recession. Having said that we broke out of 1.6050 level and any pullback in this pair we will find buyers to step in who have missed out this move. Quiet obviously the trend is up. So we like buying on dips for this pair. EUR/USD — we have a little bit of a downtrend line which could possibly turn out to be a triangle. We are interested to see how this plays out as the Friday session saw an attempt to get back over that line. The 200 MA is above this line. The European situation continues to deteriorate, as such the next couple of session is going to show whether or not this line is going to hold. We are currently bearish of this pair. We are suspicious of breakouts until we get above the 1.35 level as it would break not only the trend line but also the 200 MA and the next massive resistance level higher. If we fail from here looks like we will continue to grind lower and we will test the 1.30 level again.

Apr 27, 2012

Watch the latest analysis of the EUR/USD, GBP/USD Forex pairs for the April 27th in this video. EUR/USD — rose for the first part of the session, and fell for the rest of the session as S&P downgraded the country of Spain by two notches. The 1.3250 level continues to hold this pair down as it had several times in the past and it also coincides with the down trend line of the descending triangle. With this in mind this pair looks weak. A break of the lows from Thursday session should send this pair down to bottom of the triangle, roughly at the 1.3050 level. If we get lucky with our shorts from here at this level, we may actually see a breakdown. Once the 1.30 level gives away, we will see 1.26 level. GBP/USD — rose for part of the day, fell for the other, and in the end failed to move much. This pair looks a bit tired at this moment. As long as we are above the 1.60 to 1.6050 level — where we broke out, we like buying on pullbacks for this pair. Also the 1.61 level looks supportive as we have had a hammer there. Having said that, a pullback is certainly neccessary as this pullback will attract traders who have missed the buying opportunity during the breakout.

Apr 26, 2012

The Zig-Zag Indicator is in some ways part moving average, and part oscillator. The reason for this is that it simply tries to smooth out noise in the marketplace and allow a trader to see clear trends. It can also be used to help identify certain patterns as well, such as the head and shoulders technical pattern.

The indicator is simply a series of lines that are drawn on top of price, in an attempt to show the overall direction of price. It looks similar to a series of trend lines, and can help keep a trader on the right side of the market. As it smoothes out the rising and falling of prices, it works in the same way a moving average does – pointing the correct direction of the market over time.

One thing that makes this indicator different is that is measures percentage changes in this overall price of a currency pair. Quite often, a trader will set the lines to change direction after 3–5% price moves. In other words, a trend will still be intact until the price goes against it by whatever setting the trader chooses. This helps the trader differentiate between a simple pullback, and a dramatic trend change. By knowing the overall direction and the difference between pullbacks and trend changes, the trader can trade accordingly.

The Zig-Zag indicator is also very good at making patterns more visible as the lines are much more straightforward than candles can be at times. An errant bump in price won’t change the overall lines on the indicator, so it is much clearer in that way. Used with other indicators such as oscillators, you will be able to spot changes in trends in a very clear and concise way. It will also help you understand when a pullback is about to turn back in the trend’s favor by combining this indicator with others as well, such as the Stochastic Oscillator.

Apr 24, 2012

Watch the latest analysis of the EUR/USD, GBP/USD Forex pairs for the April 24th in this video. EUR/USD — We did have a negative session for Monday, but recovered much of the losses as the Americans stepped in. We are starting to look little bit like we forming a descending triangle and a break down below the 1.30 level looks more impressive. The 200 MA is just above. The fact is that we did bounce quite a bit during the session especially in the New york timeframe which suggests that this pair is not ready to give up. We look for resistance at the trendline as seen in the daily chart and look for signs of weakness to sell from there. We have no interest in buying the Euro, until we are well clear of the trendline and the 200 MA as headlines out there can take this pair down so quick. GBP/USD — We have broken up but fell a bit during the Monday session but bounced again to form a hammer at the top of the latest move.The candle can now be a hammer — or a hanging man. Tuesday could be important. If this pair breaks to the upside and this could suggest that support exists here — at roughly the 1.61 level and this will be a very bullish sign as this pair would continue to shoot forward. If we break the bottom of this hammer then this becomes a hanging man, a negative sign and it shows we will have atleast a pullback and would reenter the consolidation zone between 1.60 and 1.58 levels.

Apr 13, 2012

Watch the latest analysis of the AUD/USD, EUR/USD Forex pairs for the April 13th in this video. AUD/USD — It has broken the downtrend line which is significant. We have a downward sloping channel as seen in the daily chart. It has moved above the 200 MA. This is a significant breakout. We are either looking for a pullback with some type of support or break of the Thursday highs to signal we will continue to the upside. The 50% fibonacci retracement level below is the origin of this bounce. A couple of Federal Reserve board members spoke of low rates going forward. The gold market took off, and this of course had the Aussie gaining. The higher yield in Australia should continue to push the AUD higher. We are now back in a buy mode. EUR/USD — The Euro did the same thing against the Dollar. However, unlike Australia, Europe has a lot of problems economically at the moment. The problems aren’t anyway near being fixed. So what we are looking for is a little bit of a rally at this point as we continue to float around in this area, however rally will probably be faded again. So we will be looking for signs of weakness to sell. We do not trust rallies as there are far too many problems in Europe to own this Euro.