FOREX-Dollar on defensive, Aussie off 14-mth high

The U.S. currency lost nearly 7 percent against the yen in the previous quarter just ended on Wednesday as investors dumped the dollar on a fall in U.S. Treasury yields. But against the closing level at the end of 2008, dollar/yen was down only 1 percent.

The euro EUR= inched down 0.1 percent to $1.4621 after it gained more than 4 percent in July-September.

Against the Japanese currency, the euro edged up 0.1 percent to 131.49 yen EURJPY=R.

Traders said Japanese retail investors are expected to stay buyers of foreign currencies in the fourth quarter, though momentum could slow if Tokyo's Nikkei share average .N225 slides further below the key psychological 10,000 level.

The Nikkei was down 1.4 percent at around 9,987 in afternoon trade.

The Australian dollar hit a 14-month high of $0.8860 but quickly erased its gains to slide to $0.8802, down 0.4 percent on the day, as some players booked profits.

The Aussie has seen a brisk rise, buoyed by higher commodity prices and expectations that domestic interest rates will rise faster than other developed economies.

The Swiss franc, meanwhile, remained on the backfoot against the euro EURCHF=, having dropped the previous day on speculation the Swiss National Bank may have intervened to weaken its currency.

The market showed muted reaction after the Bank of Japan's closely watched quarterly tankan survey showed on Thursday Japanese business morale improved further as the economy picks up from its worst slump in decades, though it was still negative.

The headline index for big manufacturers' sentiment improved to minus 33 in September from minus 48 three month ago after having hit a record low of minus 58 in the March survey. [JPBCLG=ECI]

The big data piece in the United States is the ISM index and at 52.9 currently the index is at is highest since June 2007 and is forecast to rise to 54.0. The data is due at 1400 GMT.

Weekly jobless claims are also due along with some income and spending data for August. (Additional reporting by Anirban Nag in Sydney, Kaori Kaneko in Tokyo; Editing by Joseph Radford)

USD Rally Gaining Momentum (Morning Slices)

Fundys – Surprisingly, with the exception of Sterling, all major currencies are tracking lower against the buck heading into the US session of trade and on the first day of the Q4. The Pound has managed to recover nicely, finding strong demand on the crosses, despite the weaker PMI data. An upbeat BOE credit report, along with and upgrade on the growth outlook for the UK economy from the IMF have been sourced as the primary drivers that have easily offset the discouraging PMI. The Euro on the other hand has been under pressure for most of the session, with a break of stops below 1.4600 triggered on currency comments from Eurogroup Almunia who said that the Euro appreciation would be discussed at the upcoming G7. Also weighing on the Euro were the higher Eurozone unemployment rate, and weaker German retail sales. ECB President Trichet was out saying that a fiscal stimulus exit would be needed by 2011 at the latest. Looking ahead, the calendar is full with US Challenger job cuts at 11:30GMT, followed by personal income (0.1% expected), personal spending (1.1% expected) and personal consumption (-0.6% expected) at 12:30GMT. Also due up at 12:30GMT are initial jobless claims (535k expected) and continuing claims (6170k expected). Later at 14:00GMT, ISM manufacturing (54 expected), pending home sales, and construction spending (-0.1% expected) are due. On the official circuit, Fed Lockhart is slated to speak at 21:30GMT on the economy. US equity futures point to a lower open by some 0.50%, while commodities are also offered.

Techs - EUR/USD The weakness on Thursday could finally be setting us up for the desired close below the 20-day SMA (1.4610) which has propped for a month’s time. Look for a fresh lower top now by 1.4680 to be confirmed on a break below 1.4525 over the coming sessions. Below 1.4525 should accelerate declines and open the next drop back towards our initial objective in the 1.4400-65 area. Only back above 1.4680 delays and gives reason for concern. USD/JPY As expected, the pullback on Wednesday stalled out just ahead of our 89.30 level and the market has since bounced back above 90.00. With daily studies closer to oversold territory and recently turning up, we continue to favor the prospect for additional strength over the coming days back towards the 92.00 area before considering the possibility of a bearish resumption. Right now, the price has been confined to inside day trade with a break above 90.40 required to get things going. GBP/USD While the recent H&S top that triggered in the previous week projects deeper setbacks over the medium-term to a measured move objective at 1.5000, we would caution bears with daily studies in the process of bouncing from oversold and more likely inclined to bounce some more ahead of the next downside extension. Nevertheless, a lower top is now sought out by Wednesday’s 1.6130 high to be confirmed on a break below 1.5770. USD/CHF Looks like it could be in the process of carving out a base after dropping to a fresh 2009 low by 1.0185 in the previous week. The market has since broken back above 1.0400 and now has its sights set on establishing a close above the 20-Day SMA at 1.0365. A close above 1.0365 will be encouraging for bulls and open an acceleration of gains back above 1.0500 over the coming sessions.

Flows – UK Clearer selling Eur/Gbp. US prime name buying Cable. Spec accounts bidding Eur/Chf. Buy-side and real money interest in Usd/Cad. Reserve manager and custodial account offering Eur/Usd.

Trade of the Day – Gbp/Aud: Starting to show signs of a potential base and although we have been burned with this one already, we simply can not ignore the severely overextended nature of the market. Both the daily and weekly studies are oversold and are warning of a major upside reversal. Today’s constructive price action after establishing fresh multi-year lows below 1.8100 could now be the necessary catalyst for said correction. The recovery rally off of the lows triggered an inverse head & shoulders formation that now projects fresh upside back into the 1.8300’s over the very near-term. As such, we will look to buy a pullback to the neckline area, in anticipation of the formation of a major base. STRATEGY: BUY @1.8130 FOR AN OPEN OBJECTIVE; STOP 1.7930. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM NY) ON THURSDAY.



P&L Update and Overview: Many of you have been asking for a way to better track trading results and open positions. In response to these requests and in an effort to be fully transparent, a simulated portfolio was created in June to track and mirror all recommendations and trades. Below is a return on equity curve since inception on June 1, 2009, along with an open and closed position tracker. I am hopeful that this will make things easier for you all.

How You Can Profit From Forex Trends

by Albert Schmidt

There are number of basic skill a trader needs to have. Identifying the trend is one of the most important ones. The goal is to identify which direction price moves and make trades along that movement.

Sometimes identifying the trend may be a confusing task. But overall it is easy. Anyone can see in what direction price is moving. Therefore anyone can learn to identify the trend on any time frame. If you are new to this I recommend you to start with higher time frame charts since they have less noise.

There are many techniques and indicators to identify the trend. My favorite ones are the most simple ones. I like to apply a moving average indicator with the large number of averaging periods. Rising MA indicates the uptrend, falling MA indicates the downtrend.

However you can encounter a flat market from time to time. That is when price is bouncing up and down horizontally between two levels. In this case the upper level is resistance and the lower one is support.

On the other hand the longer you have sideways movement of price the more likely to have a breakout of the price out of that range. And that is a good news since it presents us a good trading opportunity.

Another good way to use the sideways market is to take scalping trades. Even though I’m not a big fan of scalping there are many traders who successfully make such trades. You take a short trade when price approaches the resistance level and exit at the support level. Then you make a long trade at the support level and exit when price approaches the resistance level.

No matter what strategy you will base your trading decisions you need to test your trading system on past data. The next step is to forward test it on a demo account or even on a small account with real money. That will give you clear understanding of the risks involved with trading certain strategy.

As I described you before identifying the trend is not a hard task. Anyone can learn it and make money trading currencies. On the other hand the hardest part is to be objective while identifying the trend or any other parameters of the price. It seem not that easy when it comes to real hard earned money.

Very often it’s not easy to take a trade when there is a clear trading set up has formed. For other traders it’s not easy to stay away from the market for longer periods of time and they jump into it even though the trading setup was not formed. Therefore if you want to become a successful Forex trader you need to develop self control and objectivity.

About the Author:

Albert Schmidt has been in the field of Forex Trading for a few years by now. He maintains a website about currency trading where you can find answers to the rest of your questions about how you can learn to trade Forex.

Forex Trading Advice - Is It Right For You

by Peter Acosta

Is it possible to make a lot of money trading currencies? It is if you willing to learn from tips that we will illustrate you how to maximize your profits from trading Forex. This is a very simple plan. Here is one of our tips. The simplest foreign exchange advice is to use longer time frame charts to boost your profitability. This means that you have to make it a habit of checking the weekly and monthly charts to gain a better view of the trends that are going on.

These kind of long term charts help to forecast trends. They are great for learning and finding out more about the major troths and slopes that are always happening in the currencies trading market. Not only that they will also help you learn the proper support and resistance levels as well as the best entry points.

Another valuable currency speculation advice is learning when to trade and when not, overtrading will make you lose money. It’s takes some time to see that just few winning trades are better than trading like crazy. It is better that you focus on trading properly rather than getting in to too many trades. Winning Forex operators earn money from doing the right moves often and avoiding doing the costly mistakes. In fact, the best traders earn the most money from doing only limited amount of trades.

A proper view for risk is a must to succeeding with trading and so you have to know how and when to take risks which however must be be learned and should not go down into starting to gamble dreaming that you will make a fortune. To say the least a person that is averse to taking big risks should not engage in currency trading.

For those traders that are able to make profitable trades it is not a good idea to branch out because it is better that they concentrate and focus on their few trades instead of trying to maximize their trading too early.

When trading it is smart to set realistic goals and targets. Your targets will keep you on track as you begin to make some successful trades. They will also help you to track if you are losing money and should stop before you lose your shirt.

With proper learning period you could get started with foreign exchange trading but bear in mind also that to be successful you will need to learn how to focus your efforts on the money management methods to protect your account, this should be used with proper trading system to succeed. Consider all the points and set realistic profit goals and then jump in into Forex Trading!

About the Author:

Are you thinking about Forex Trading? fxline.com knows the ins and outs of currency trading. Their sites provide Forex Trading Advice that will give you confidence to succeed in your Forex trading career.

How Can Forex Systems Help You to Trade Quickly?

by Alex Miller

Many of us have seen our nest egg shrivel up and go away as a result of the problems that we are experiencing in the market recently. For that reason, many people have become interested in trading on forex, because of the way it is different from the other markets. Every trade that is made on the Forex market is going to have somebody that comes out on top and somebody that loses. It is what is known as a zero-sum market and if you’re able to come out on top more often than not, you can make a considerable amount of money.

The Forex systems that are available on the Internet can certainly help you to be profitable if you use them properly. Since there are so many different types of systems that are available, we thought we would show you the top three, as far as the categories are concerned. We also will help you to identify a few things that you should avoid along the way.

The most popular of the Forex systems and the most plentiful that are available to help you to be able to tell which way the Forex market is going to move during the day. Most of these typically take a few minutes for you to run in the morning and they do a relatively good job of giving you some direction to go. You need to keep in mind, however, that trading on Forex is rather a volatile type of system so do not put all of your faith in these whenever something is moving. Some of them are also not any good, so make sure you look at reviews ahead of time.

You might be interested in upgrading to more of a semi automated system that will not only help you to gauge which direction the Forex market is going to move, they could take care of some of the trading for you. Most of these systems allow you to turn these functions on and off according to your comfort level. Being able to identify trends and then act on them automatically makes these types of tools a good idea.

The final type of Forex systems that we are going to discuss are fully automated systems. There are a dozen or so of these that are available for download over the Internet and most of them make the same promise. Simply upload them to your computer, turn them on and allow them to make money while you go about your day to day life. Some of these actually worked quite well but others will drain your account quickly. Make sure that you go into this type of Forex system with both eyes open.

A final word that we would like to say is the fact that it is always necessary for you to keep your common sense about you whenever you are trading on the Forex market. Never allow a program to simply run on its own and to use up your money without watching over its shoulder very carefully. Although these Forex systems are excellent tools that can help you to build a portfolio quickly, they are all so something that should be used along with your own knowledge about trading on Forex.

About the Author:

To see the top rated FX Trading System, visit our website. We reviewed dozens of systems, both good and bad

Forex Training: Forex Market Background

By Bart Icles

If you plan to engage in foreign exchange (forex) trading, it would be to your advantage if you arm yourself with substantial knowledge of the foreign exchange market. Forex trainings are all over the Internet and there are even some consultants offering help on educating yourself about the dynamic forces that go about the forex market. If you take a look around, you can choose from numerous forex training programs available. With the massive number of forex trainings that can help you in your learning, you can easily conclude that they cover a wide range of topics. Varied as they may be, one of the common factors that these different forex trainings have is that they all help you understand the complex milieu of the forex market.

One the most rewarding markets that has opened its doors to various traders is the forex market. It continues to attract new traders and investors because of its identifiable trading patterns, and comparatively low margin requirements.

Unlike in stock markets, one can conduct trading in the foreign exchange market without the restrictions of a central physical exchange. Instead, one can arrange for transactions through the telephone or the Internet. Having this kind of transaction structure, the forex market has come to be recognized as the largest marketplace in the planet. It averages a foreign exchange volume of more than $1.5 trillion per day. This high volume allows traders to make faster transactions with lower transaction costs. As a result, a large number of banks, financial institutions, and multinational corporations has seen forex trading as an exceptional investment opportunity.

Most forex training courses or programs also help would-be traders in understanding the significance of trading decisions, and how they affect entry into forex trading. Forex trainings also cover important topics such as controlling risks and exiting trades.

Forex trainings should also assist future forex traders in learning more about forex charts and how to interpret them. At the same time, forex trainings should also make learners understand the value of forex charts to forex trading. Forex trainings must also update learners on technical studies on forex trading, market news and analysis, and current and predicted trading signals.

Take note that no one can become a forex trading expert overnight without going through a comprehensive forex training program. Mastery of forex trading does not only come with a single forex training course, CD, or book; mastery of the market is achieved through continuous learning, additional trainings, and trading experience.

About the Author:

Forex Trading starts with a desire to learn and a drive to become a great trader. A Forex Strategy takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Don’t Trade Currencies Without Forex Signal Software

by Gary Malone

Forex signal software is an invaluable tool for any and all foreign currency traders regardless of involvement or experience. This forecasting tool can provide reports on currency pairs that are very rich in detail in order to support long term trading strategies; or they can offer basic facts and figures to aid beginners or part time traders. Since the prices increase along with the depth of information available, the best Forex signal software for you should be the one of which all its features are familiar and useful to you.

The least expensive Forex signal software will offer basic information on the potential direction of currency pairs that have been specified by the user. In some Forex signal software versions, the trader is allowed to focus on one or two currencies and have more detailed information reported on those instead of a whole series of currency pairs.

This kind of basic software is normally not enough for expert traders, though it is rather ideal for beginners and part timers because it is the least expensive way to obtain valuable information to which they wouldn’t have access otherwise.

The features offered by more superior Forex signal software vary greatly in response to the wide range of trading needs to be fulfilled. They may include instant messaging or some kind of newsletter in addition to customizable forecasts or special attention to a certain currency pair.

Using more complex Forex signal software allows you to customize the type of information you are provided with as well as the format. For example, you can select to view the trend patterns as they appear in minutes, months, or anything in between. A type of optional report you can get from these trends would be one indicating the stability of that currency pair within the selected time frame.

It can be very challenging staying on top of world news in order to predict what will happen to the foreign currencies you are trading. On top of it, there are thousands and thousands of experts documenting and analyzing all this information already so why should you have to do it too? This is why Forex signal software exists. It is basically a medium for experts to send subscribers their valuable guidance in an easy to follow format. Beginners can seriously benefit from signal software as they will learn more about how to make the connection between world events and their effect on foreign exchange.

As mentioned before, Forex signal software is pretty expensive so it is advised that you make sure you are serious about learning how to trade foreign currency before you commit to any signal software.

Being properly equipped and informed certainly increases your chances of success, making those who are using Forex signal software more and more successful every day. When you are familiarized with the procedures of foreign exchange and the software tools and resources available, you will BE capable of making excellent trading decisions.

About the Author:

The Author has assembled a Forex information site that includes Forex Signal Software, Forex Books, DVDs and Courses. For more information regarding Forex Signal Software, please navigate to allforexshop.com. Grab a totally unique version of this article from the Uber Article Directory

Forex Trading - Making High Profits Will Always Involve Risks

by Jimmie Harrison

Welcome to the wonderful world of forex trading. No, this type of trading is not about bonds or stocks. In fact, it does not even involve bonds or stocks. What you will be doing is trading currency pairs. We cannot count just how many individuals out there know that this type of trading can bring them money, but they are not sure what to do, how to go about doing it and whom to talk to. Are you in the same shoes as them? If so, kick back, grab a cup of coffee and get ready to have some high quality information revealed to you about forex trading.

The currencies that are chosen over others are chosen because they have more value and are of higher quality. Are you a newcomer to this trading world? If so, then we highly recommend you listening to what the experts have to tell you. Even if those experts tell you something that doesn’t sound like it will work, you should listen to them. Why? Because if you are a newcomer, then you may be thinking in a whole other direction. As for the experts, they have been trading for many years and know all of the tips and tricks. They are very much qualified to give out advice.

There are people in India, Nigeria, United States, Canada, United Kingdom and other places throughout the world that are participating in this trading program.

We tell you, there are so many benefits with forex trading and many companies, industries and individuals are taking advantage of it. We believe you should get out there and take advantage of it as well.

As you are starting out, you are going to find many legitimate companies. Those companies are there to take you by the hand and help you our with your adventures. They will be willing to answer any questions that you may have and from time to time will give you advice. Take note that there is no such thing as getting high profits and minimal risk.

It just goes without saying that the more profits you want to bring in, the higher your risks are going to be. We know, this is one of the sayings that chase many individuals off and if you do not feel like you have money that you are willing to put on the line, then you may want to back out of it.

However, for all of you risk takers out there, you just might get lucky. However, don’t let that luck get caught up in between greed as greed can really ruin an individual.

When it comes to that trading company, you should always make sure you check the background of them. If you run across a company that does not allow information about their history or background to be found, then that should be a red flag to you.

Getting involved in forex trading is probably one of the best decisions you have made in a long time. However, when you go in this field, you will need to have your mind on straight. You cannot jump in expecting to get a lot of money, because this is only going to mess you up. We wish you luck as you make you are trading currencies and don’t forget to do your homework.

About the Author:

Then, you must decide what the size of the account will be. Automated Trading Software Well, right now, we can tell you that you are not alone in this situation. In conclusion, why not try your luck on the FOREX?

Before You Can Be Successful with forex, You Must First Learn How To Trade Forex

by Gary Malone

With the right information and little money, you too can learn how to trade forex. Demo accounts can be used to get hands-on trading experience by simulating transactions you would normally deal with in the practical trading world. Other forms of getting information are by observing professionals in the field and by taking some classes. This article will guide you through the road of acquiring the necessary foundations for successful forex trading.

A good way to learn the workings of forex trading is by taking some courses. There are courses that will cost you nothing and then there are those that you have to pay. As a newcomer, you will find that sometimes it is worth paying for some quality instruction. This is the case with some of the lectures offered by eminent forex traders. These people will often reveal some insider information which you would not learn otherwise, such as what to do with your money. Naturally, you should also have a book on forex to which you can refer for authoritative facts.

There will be times when some key principles involved in the process of learning forex trading won’t appear to be that important. Nevertheless, these same principles will get you to better understand the carrying out of forex trading. You will come across thousands of documents and places online that will get you better informed and quickly increase your learning capacity.

Accumulation of knowledge is essential if you want to establish a solid foundation for your forex trading skills. So you may learn at no monetary cost, forex trade agents let you practice with a demo account. This is your chance to see how well you would do as a forex broker, and if this job gives you as much gratification as you initially thought.

Programs offered by agents who share their invaluable forex trading knowledge are not all the same. Some programs will offer more possibilities than others. MetaTrader is among those that offer a great diversity of levers to facilitate the study of currency trends. This type of demo account should be put to the test for a minimum of sixty days. You should save your own money until then.

Renowned foreign exchange traders can help you know your way around the craft. Learning from such experts is an excellent thing to do if you want to get ahead fast. Find out about some of the secrets known only to a special group of forex agents. On the other hand, a large sum of money may be required if you want to have such a person as your coach.

Going to hear some currency exchange expert deliver a lecture so you may learn how to trade forex, is an excellent initiative. You will have the chance to speak with an expert who is disposed toward revealing his secrets, thus, giving you the opportunity to ask all that you want to know about forex. Of course, searching online for peer groups interested in forex will also place you in contact with experts in the field. These approaches are all excellent to help you forge your own foreign exchange method.

About the Author:

G. Malone has created a Forex Resource site, and if you are interested in Learn How To Trade Forex, click over to allforexshop.com to get started. Learn How To Trade Forex and start trading Forex today. Get a totally unique version of this article from our article submission service

Working With An Expert Financial Advisor

For most young people today, who don’t expect that government pension or security programs will be around in the future, deciding on an expert financial advisor will be a crucial decision to make. There’s no getting around the fact that financial choices made when young can have a deep impact on the quality of retirement later in life, however soon or late that could be.

The above reasons, then, should illustrate why it’s important to know a few things about how to go about finding an expert financial advisor. After all, this person is going to serve as a guide through potentially hazardous waters. So don’t just land on the first person who pops up on a search engine after typing in “expert financial advice” or the like. The finance world is full of shady characters and double-dealers, so keep that in mind.

Always check on a planner’s credentials, certifications and memberships in professional associations. No planner worth his or her salt will hesitate at providing background information. In fact, the good ones all encourage potential clients to look at their bona fides carefully before making a decision. Generally, any planner at one of the large financial services companies will have all these attributes.

This is not to say that only the largest companies have planners who meet all requirements, though. There are many independent advisors who are just as competent. Also, advisors and professional advisor firms always seek to make sure they’re registered with federal or state securities bureaus and that they’ve properly filled out Form ADV Parts 1 and 2. The final copy of it can be viewed online at the Securities and Exchange Commission’s (SEC) government website.

Failing to exercise reasonable and prudent caution when it comes to working with an expert financial advisor can be a recipe for failure down the road. With the amount of information freely available on the Internet or via a simple phone call about any of these people, it would be a crime not to take the time to check. And from there, selecting an advisor will be a matter of picking from among the best on the market.

About the Author:

Find out how an Expert Financial Advisor can help with your Forex Trading. Make certain you sign up for John Eather’s Free eCourse on Forex at http://www.moneymakingfxtrader.com now! Get a totally unique version of this article from our article submission service