Daily Review 04/12/2009
Posted by Cedrick Toledano in Uncategorized on December 4th, 2009
USD Dollar (USD)
The Dollar strengthened versus most majors as US stocks fell after Nonfarm Productivity contracted to 8.1% vs. the 8.5% expected and despite the number of unemployed that dropped to the smallest lowest since March 2008 coming at 457K. In addition, Unit Labor Costs dropped to -2.5%. NASDAQ and Dow Jones decreased by 0.54% and 0.84% respectively. Crude oil weakened by 0.2% closed at 76.46$ a barrel and Gold (XAU) rose by 0.4% closed at 1217.4$ an ounce. Today, Non-Farm Payrolls is expected at -119K vs. -190K prior and Unemployment Rate is expected to remain at 10.2%.
EURO (EUR)
The Euro approached a 16-month high versus the Dollar after Trichet said in Frankfurt the ECB will charge a variable rate instead of a fixed 1% for one-year loans offered this month. The Euro later fell versus the Dollar as US stocks fell. Overall, EUR/USD traded with a low of 1.5041 and with a high of 1.5140. Interest rate remains unchanged at 1%.
EUR/USD – Last: 1.5059
|
Resistance |
1.5095 |
1.5114 |
1.5140 |
|
Support |
1.5035 |
1.4970 |
1.4885 |
British Pound (GBP)
The Pound weakened against the Dollar after the service sector grew more slowly than expected in November came out at 56.6 vs. 57.00 forecast, but new business continued to pick up and firms were optimistic. Overall, GBP/USD traded with a low of 1.6555 and with a high of 1.6720. No economic data expected today.
GBP/USD – Last: 1.6535
|
Resistance |
1.6640 |
1.6700 |
|
|
Support |
1.6520 |
1.6390 |
1.6280 |
Japanese Yen (JPY)
The yen weakened for a third day against the Euro and the Dollar as signs the global economy is recovering boosted demand for riskier assets. Overall, USD/JPY traded with a low of 87.34 and with a high of 88.47. No economic data expected today.
USD/JPY-Last: 88.20
|
Resistance |
88.30 |
|
|
|
Support |
88.00 |
87.65 |
87.00 |
Canadian dollar (CAD)
The Canadian Dollar fell versus the Dollar after European Central Bank President Trichet called for a strong U.S. dollar, prompting traders to purchase the Dollar to cover short positions. Overall, USD/CAD traded with a low of 1.0462 and with a high of 1.0583.Today, Employment Change is expected to rise from -43.2K to 15.3K, Unemployment Rate is expected to remain at 8.6%, Ivey PMI is expected at 60.4 vs. 61.2 prior.
CAD/USD – Last: 1.0560
|
Resistance |
1.0580 |
1.0635 |
1.0750 |
|
Support |
1.0522 |
1.0460 |
1.0420 |
Research by http://www.ufxbank.com
Daily Review 03/12/2009
Posted by Cedrick Toledano in Uncategorized on December 3rd, 2009
USD Dollar (USD)
The Dollar strengthened against most majors after ADP Non-Farm Employment came out worse than expected at -169K vs. -149K forecast showing employment is still troubled by the recession increasing demand for the Dollar as safety. The Beige book was released saying consumer spending has improved and the U.S economy is improving. NASDAQ rose by 0.42% and Dow Jones weakened by -0.18%. Crude oil fell by -2.3% to 76.6$ a barrel after the inventories report showed increases in the supply instead of a decrease expected. Gold (XAU) rose by 1.2% reaching a new record and closed above 1214 an ounce. Today, Unemployment Claims is expected at 479K vs. 466K prior, ISM Non-Manufacturing PMI expected to slightly rise from 50.6 to 51.6, Fed Chairman Bernanke Testifies.
EURO (EUR)
The Euro weakened versus the Dollar after disappointing employment figures in the U.S were released. Overall, EUR/USD traded with a low of 1.5032 and with a high of 1.5109.Today, Retail Sales is expected at 0.2% vs. -0.7% prior, Interest Rate Decision is expected to remain at 1%, ECB President Trichet Speaks.
EUR/USD – Last: 1.5086
|
Resistance |
1.5114 |
1.5144 |
1.52 |
|
Support |
1.5034 |
1.4970 |
1.4842 |
British Pound (GBP)
The Pound rose to the highest level in almost a week against the Dollar after a report showed the pace of contraction in the U.K. construction industry slowed and investor concern eased that Dubai World may default. Overall, GBP/USD traded with a low of 1.6548 and with a high of 1.6694.Today, Services PMI is expected at 57.1 vs. 56.9 prior.
GBP/USD – Last: 1.6669
|
Resistance |
1.6694 |
1.6723 |
|
|
Support |
1.6625 |
1.6568 |
1.6390 |
Japanese Yen (JPY)
The Yen fell against all of its major counterparts after Japan’s Prime Minister Yukio Hatoyama said the currency’s strength can’t be left as it is and investors expect action. Capital Spending came out worse than expected with -24.8% versus -15.8% expected. USD/JPY traded with a low of 86.59 and with a high of 87.48. No economic data expected today.
USD/JPY-Last: 87.79
|
Resistance |
88.38 |
88.63 |
|
|
Support |
87 |
86.5 |
86 |
Canadian dollar (CAD)
The Canadian Dollar weakened against its U.S. counterpart as Crude Oil tumbled along with other commodity prices, diminishing the appeal of currencies tied to growth. Overall, USD/CAD traded with a low of 1.0431 and a high of 1.0514. No economic data expected today.
CAD/USD – Last: 1.0494
|
Resistance |
1.0515 |
1.06 |
1.0748 |
|
Support |
1.0482 |
1.043 |
1.04 |
Research by http://www.ufxbank.com
Binary options
Posted by Cedrick Toledano in Binary Options on December 3rd, 2009
Binary options can be abbreviated as BO. The mathematical meaning of binary is dual or two. In this case it refers to two the two choices we can use in binary trading options. It means that either we get paid or not. We can profit from this trade or bear the losses. This is the basic principle of binary trading options. Understand this and one gets the whole idea of its working and procedure. It is quite easier to get than the characteristics of traditional options of the Forex trade market. The contract offered in binary options trading is of a peculiar nature. The traders can totally profit from this or not at all. It is dependent on the outlook and belief of the trader whether to invest or not.
If one is not sure of his decision then he has the option not to trade at that specific time. He can do it at a later time. On the other hand, if one is quite confident enough that the trend of the Forex trade market can turn favorable for him, and then he should invest. But this business is not without risks and losses. The profits are huge and so are the incurred losses. Likewise, one can sell his shares if he is confident enough that he will get a good price for them. Also the contracts are on an hourly basis. They cannot expire or be terminated before that hour is over. The amount of profits are discussed and fixed at the time of submitting the contract.
The two main options in binary trading options are quoted as money-or-loss. They do not offer anything else except money. Other binary trading options offer increased contracts or some more shares. But that is not the case with binary options trading. Also for any trader to receive cash, the contract has to be within expiry time. If it exceeds the expiry time, the contract does not remain valid. The amount the trader receives is decided on the time of expiry. That is when he receives the money from brokers. This decides if our trades are going uphill or cruising down. The advantage in this method is that cash is received on the spot for that specific contract.
The main zones where this method is popular and wisely used are based in Europe. The EUREX is the stock exchange foe the whole of Europe. Also the CBOT, which is the Chicago board of trade, also offers the traders this method of trading. The approximate value of each contract here is $1000. The condition applied to the traders is that they must have at least some experience before trading. The HedgeStreet exchange is another one offering this option. All these CBOT, HedgeStreet, etc are legal financial exchanges and under government jurisdiction of the respective country. This method is very favorable in the Forex market and can be pivotal for success for some.
GoLearn Forex Analysis 2/12/2009
Posted by Cedrick Toledano in Uncategorized on December 2nd, 2009
EURUSD Survives Dubai Scare – What Next? By GoLearn Forex
EUR/USD:
Now that the EUR has safely breached resistance and survived the Dubai scare let’s take a look at where the EUR may be heading next. In order to project forward we must first look back at where the EUR has been. In the Graph below you can clearly see the period of complete market turmoil, commencing July of 2008. Over the next year notice the ensuing volatility represented by the white circle. The area in the red box shows a steadier trend emerging in June 2009. This is further evidenced by price cleanly riding up the 50 SMA in yellow.
INSERT CHART EUR1
I drew a Fibonacci Projection from the low indicated by Box A to the high indicated by Box B on the Graph below. These points are significant because they are inflection points that began the EUR rally. Additionally, they are located in the area of volatility circled in white above. Fibonacci makes sense and order from disorder and chaos. Therefore using these points for the basis of the projection is taking chaos or what we refer to as volatility and making order and sense from it which is the period of time represented by the red box above. View the results in the Graph below.
INSERT CHART EUR2
The Fibonacci’s Projections land on almost precisely the last 3 resistance levels and highlights past price action resistance points as well. The FIBO 138.2% level at 1.5048 was struck in October when the EUR finally broke the psychological 1.50 barrier. It was tested again in November before finally being taken out a few days ago.
So where is the EUR headed next? Based on the Fibonacci Projections we expect to meet resistance at 150%, which coincides with previous support levels as indicated by the 2 blue circles back in May and June of 2008. If the Fibonacci 150% level is taken out then the next point of resistance is the 161.8% or approximately 1.55. You can see the congestion at that level starting in May 2008 and lasting through June 2008.
Since the 50 SMA has been holding such strong support for this EUR move our new Long entries would trigger near the 50 SMA (buying on the dips). If we breach the 150% Fibonacci level then we would increase our Long and look to take profit near 1.55. However, in order to enter a short we would need to see an entire candle appear below the 50 SMA. This is an occurrence that has not taken place in months.
INSERT CHART EUR3
Good News Give the USD a Slide – by GoLearn Forex
The Dollar tumbled Tuesday falling just south of 74.30 on the DXY. The Kiwi was the big winner advancing 1.38% followed by the Pound at 1.03%. Meanwhile the JPY was the only major to lose ground to the Greenback as an emergency meeting of finance minister in Japan was convened to discuss the JPY’s continued strength.
The Dollar slide was triggered by a wave of positive economic data releases. On the home front, contracts to purchased existing homes jumped 3.7% unexpectedly. ISM figures remained above the critical 50 level. Couple the data releases with positive Black Friday and weekend sales as well as Dubai shoring up its debt facility payments and we had the ingredients for a massive Global Equity Market rally. It will be a quiet Wednesday for economic releases.
Oil finished the day up just over a dollar a barrel to 78.37. Gold closed at 1,196.60 up $20 from the day before. In intra-day trading Gold broke 1,200 before retracing, although futures are pointing up this morning so 1,200 should be no barrier today.
Upcoming Forex Events for December 2, 2009
EUR PPI (MoM) Forecast 0.10% Previous -0.40%
USD ADP Nonfarm Employment Change Forecast -148.00K Previous -203.00K
USD Beige Book
AUD Retail Sales (MoM) Forecast 0.50% Previous -0.20%
Analysis by http://www.golearnforex.net
Daily Review 02/12/2009
Posted by Cedrick Toledano in Uncategorized on December 2nd, 2009
USD Dollar (USD)
The Dollar weakened versus most majors as better than expected housing data was released and the Dubai effect fades away. Pending Home Sales came out surprisingly positive with 3.7% versus -0.4% decline expected. ISM Manufacturing PMI was released with 53.6 weaker than 54.8 forecasted. NASDAQ gained by 1.46% and Dow Jones reached new yearly highs with 1.23% change. Crude gained by 0.75% closing at 77.86$ a barrel and Gold (XAU) gained by 1.25% closing at new record highs with 1195.9$ an ounce after reaching the 1200$ mark. Today, ADP Non Farm Employment Change is expected with -149K versus -203K prior. FOMC Member Lacker will speak and the Fed\’s Beige Book will be released giving more information on future monetary policy decisions. Crude Oil Inventories are expected with -0.4M decrease versus 1M prior, and could result volatile prices.
EURO (EUR)
The Euro continued to climb versus the Dollar as Dubai\’s effect fades off and equity markets continue rising. Euro Zone Unemployment Rate came out 9.8% as expected and German Unemployment Change came out better with -7K decrease versus 5K increase expected. Overall, EUR/USD traded with a low of 1.4971 and with a high of 1.5117. Today, PPI is expected with 0.1% versus -0.4% prior.
EUR/USD – Last: 1.5090
|
Resistance |
1.5145 |
1.5170 |
1.5210 |
|
Support |
1.5050 |
1.5000 |
1.4975 |
British Pound (GBP)
The Pound rose versus the Dollar after Housing Prices showed an increase of 0.4% higher than 0.3% expected and Dubai\’s crisis concerns eased. Manufacturing PMI came out weaker with 53.6 versus 54.1 expected. Overall, GBP/USD traded with a low of 1.6390 and a high of 1.6646. Today, Construction PMI is expected with 46.9 versus 46.2 prior. MPC Member Dale will speak today at Essex.
GBP/USD – Last: 1.6620
|
Resistance |
1.6650 |
1.6700 |
1.6750 |
|
Support |
1.6550 |
1.6510 |
1.6475 |
Japanese Yen (JPY)
The Yen weakened versus the Dollar and the Euro after BOJ announced it will provide 115 billion Dollars for 3 month loans at 0.1%. Monetary Base came out weaker with 3.8% versus 4.7% expected. Overall, USD/JPY traded with a low of 86.16 and a high of 87.53 and EUR/JPY traded with a low of 129.32 and a high of 131.27. Today, Capital Spending is expected with -15.8% versus -21.7% prior.
USD/JPY-Last: 86.70
|
Resistance |
87.10 |
87.50 |
88.00 |
|
Support |
86.30 |
85.75 |
85.25 |
Canadian Dollar (CAD)
The Canadian Dollar rose versus the Dollar as investors shift back to higher yielding assets. Australian government raised its overnight interest rate by 0.25% supporting other commodity linked currencies such as the Canadian Dollar. Overall, USD/CAD traded with a low of 1.0405 and a high of 1.0576. No economic data expected today.
CAD/USD – Last: 1.0465
|
Resistance |
1.0475 |
1.0505 |
1.0540 |
|
Support |
1.0400 |
1.0375 |
1.0315 |
Research by http://www.ufxbank.com
Ways to make day trading easy with use of Bungee options
Posted by Cedrick Toledano in Bungee Options on December 2nd, 2009
The percentage of traders being successful in the bungee options trading has been increasing over the period of time when compared to the failures into the market. as it has been noticed that due to some issues a lot of trader are not able to make money in this kind of a financial market new and improved methods have been introduced for these traders. One of the methods among all of these is the bungee options trading method. It has been an altogether new opportunity for the all the day traders that exist in the forex market. The percentage of day traders making use of call and put options and trading in the forex market has been increasing up to 60%. Most of the times the traders in the forex market find this kind of bungee options trading very beneficial for themselves for a reason that it delivers huge profits to the trader with a small initial investment.
As the name suggests bungee options trading can have only two outcomes where in the trader can either win the trade and earn huge profits or then lose the trade and earn no profits. Most of the times the winning pay out in the bungee options trading is fixed and it is up to 75% of the total investment made and the return payout can be anything like 15% of the total investment made by the forex trader in bungee options trading. Thus whenever a trader may make any kind of successful trade within the forex market there are guaranteed chances that the forex trader would be yielding higher profits.
One another best part of bungee options trading is that though sometimes you may lose there are still chances for the trader to earn at least 15% of the profits of the total amount of capital that may be invested. These are some of the benefits which urge the day traders to trade in the forex market with bungee options trading. These investments also help the day traders to keep on investing in these bungee options in the forex trading market. These things also create a lot of hedging opportunities in the forex market. Thus by this you will always get to learn something out of all the trades that you may loose or win.
There are not many securities available in this kind of market but then all the securities that are available are very good for trading into these forex trading market. Most of these opportunities available to the day traders in the forex market are beneficial for carrying out bungee options trading in the forex market. If you are a newbie to this foreign exchange market and not very well versed with the different kind of trading then bungee option trading is the best option that you can choose for your self as a day trader.
GoLearn Forex Analysis 1/12/2009
Posted by Cedrick Toledano in Uncategorized on December 1st, 2009
Fibonacci Does it Again! By GoLearn Forex
USD/JPY:
Fibonacci tools never cease to amaze me. The question becomes do they predict or become a self fulfilling prophecy? In the end it may not matter. What does matter is that Fibonacci tools assist traders in generating expectations on price action whether you day trade or trade a couple times a week. Traders can quantify seemingly random or chaotic price action with the use of Fibonacci tools.
Near term resistance on the JPY was at 88.00 or R1 as shown on the Graph below. R1 was tested twice before giving out last Thursday the 25th. R2 at 87.15 formed in December of 2008 and was tested again in January of 2009. The Candle that broke R1 stopped precisely at R2. The very next day R2 was taken out. The question becomes where will price go from there?
INSERT CHART
For the answer we turn to Sir Fibonacci. If you drew a Fibonacci Projection from the JPY low back in April of 09′ at a handle of 101.44 until R1 then the next Fibonacci level forms at 84.84, or 123.6%. Notice on the Graph that JPY hit exactly that line before retracing its path back to R2.
Simply looking at price action, the breaking news, and fundamentals would have left a trader sidelined by the volatility. However, the use of Support and Resistance lines coupled with Fibonacci Projections helped interpret price’s volatile ride.
The BOJ picked up its rhetoric alluding to potential intervention once the Yen slid beneath 85. Japan almost outright favors a weak JPY as they rely on a weak exchange rate for their export business. The export business accounts for a large part of Japan’s GDP. So where will the JPY go next? Consult your local Fibonacci tool………
Gold Advances – Again by GoLearn Forex
Commodity currencies rallied today with the AUD gaining 1.03% on the Greenback while the Pound gave up nearly 3/10th of a percent. The EUR and CHF were basically flat on the day. Speculation in the market about European exposure to Dubai kept the respective currencies in check. Gold advanced $1.20 to 1,178.90 and Oil picked up $1.15 to close at 77.18. In the Agricultural space Corn, Wheat, and Soybeans were up strongly as well.
Global Equity Markets were mixed as Asian markets advanced while European markets gave up Friday’s premature gains. In the U.S the DJIA picked up 34.92 points to close at 10,344.84. Normal trading volumes are expected to resume tomorrow. Futures at the moment are mixed with Asian markets looking to give back Monday’s gains while European markets look set to advance.
On the data docket for Tuesday we have the RBA set to announce its interest rate decision. The market is looking for another quarter point hike to 3.75%. In Switzerland GDP is set to print. In the Euro-zone, German Unemployment Change is due out with analyst expecting a positive print. In the U.S. ISM Manufacturing figures will be publish and expectations are for a 55 figure.
Upcoming Forex Events for December 1, 2009
JPY Interest Rate Decision Actual 0.10% Previous 0.10%
CHF GDP (QoQ) Actual 0.30% Forecast 0.30% Previous -0.30%
USD ISM Manufacturing Index Forecast 54.80 Previous 55.70 
Learn Forex but Keep it on the Sunny Side
You will read everywhere that a positive outlook and a dash of optimism is integral when trading in the foreign exchange market. Learning forex trade is more than just examining charts and diagrams, but rather keeping a stiff upper lip and a bit of self control.
Attitude carries more than the worth of gold when dealing with the pressure and consequence of trading forex. Frustration grows easily when forex traders miss a lucrative opportunity or take a big loss. The temptation to go “all in” can be overpowering and impatience can breed a losing attitude.
Not allowing your emotions determine your next trade is easier said than done. It all comes down to one word – discipline. If you think that after a big loss (or a series of small ones) that you are going to “take vengeance” on the market, you’re about to embark on a disappointing path. Yes, being able to make serious decisions spur of the moment is crucial, but not when they are done in a reckless, emotional way. What differentiates these two behaviors is the thought process leading up to the quick trade.
Throwing off the negative feelings and low worth that accompany a loss is often the driving force that leads to these behaviors. You should never risk more than 2-3% of your capital on any trade, however during these emotional hazes, traders sometimes leverage 5-7% to compensate for the previous losses.
There are a few simple practices that you can implement that can help keep you grounded when trading in such a highly volatile market.
- Have a trading plan. Start your day with a purpose, after reading the reports and signals. This plan needs to have freedom to move according to market fluctuations, but put certain boundaries on your trading behavior.
- Be the adult. When you feel those feelings welling up inside of you that push you to make irrational trading choices, walk away from the trade.
- Keep a “mantra” or “motto” next to your computer. Find something that speaks to you and your goals as a forex trader. Draw on this wisdom instead of trusting your emotions whenever you feel tempted to make forex more of a gamble than an investment option.
- Analyze your losses, don’t just try to erase them. It is irrational to take a loss for 60, 70 or even 100 pips. This is the obvious outcome of a bad trade decision. If this happens it’s time to take a step back and re-evaluate whether you’re trading with your mind or your emotions.
- Put your heads together. Keep in the company of grounded individuals who are also experienced in forex trade. By getting feedback and analyzing together, you will feel less isolated and be held accountable to trade with the right expectations and intentions.
There’s always tomorrow, “it’s only a day away.” So, meditate on this and be assured that the next profitable trade will be coming along in a short while. Exercise some patience and faith and keep your mind free and clear to ensure success. Avoid getting down in the dumps over a few losses and keep on the sunny side of the forex trade.
Analysis by http://www.golearnforex.net
Daily Review 01/12/2009
Posted by Cedrick Toledano in Uncategorized on December 1st, 2009
USD Dollar (USD)
The Dollar weakened slightly versus the other majors as Dubai\’s crisis seem to have been contained. Chicago PMI came out stronger with 56.1 versus 53.4 expected. NASDAQ and Dow Jones gained by 0.29% and 0.34% after trading in the red zone for most of the trading session. Crude gained by 1.81% closing at 77.43$ a barrel and Gold (XAU) gained by 0.59% change closing at 1181.1$ an ounce. Today, ISM Manufacturing PMI is expected lower with 54.8 versus 55.7 prior and Pending Home Sales are expected with -0.4% change versus 6.1% prior.
EURO (EUR)
The Euro gained slightly versus the Dollar as risk appetite resumed following UAE\’s pledge to back Dubai\’s banks. CPI Flash Estimate came out 0.6% better than 0.5% expected. Overall, EUR/USD traded with a low of 1.4971 and with a high of 1.5084. Today, Euro Zone Unemployment Rate is expected worse with 9.8% versus 9.7% prior. German Unemployment Change is expected worse with 5K versus -26K prior.
EUR/USD – Last: 1.5010
|
Resistance |
1.5030 |
1.5070 |
1.5085 |
|
Support |
1.4975 |
1.4950 |
1.4920 |
British Pound (GBP)
The Pound declined versus the Dollar after Net Lending to Individuals came out only 0.3B versus 0.8B expected, reducing expectations for a decrease in the QE program. Mortgage Approvals came out weaker with 57K versus 59K expected. Overall, GBP/USD traded with a low of 1.6380 and a high of 1.6593. Today, Manufacturing PMI is expected stronger with 54.1 versus 53.7 prior. MPC Member Posen will speak in London.
GBP/USD – Last: 1.6440
|
Resistance |
1.6505 |
1.6590 |
1.6650 |
|
Support |
1.6375 |
1.6275 |
1.6250 |
Japanese Yen (JPY)
The Yen gained slightly versus the Dollar after BOJ Governor Shirakawa said he will meet Prime Minister Hatoyama to discuss the Yen and the monetary policy following recent Yen movement. Overall, USD/JPY traded with a low of 85.86 and a high of 86.85 and EUR/JPY traded with a low of 128.97 and a high of 130.82. Today, Monetary Base is expected with 4.7% versus 4.4% prior.
USD/JPY-Last: 86.30
|
Resistance |
86.85 |
87.50 |
88.00 |
|
Support |
85.75 |
85.25 |
84.80 |
Canadian dollar (CAD)
The Canadian Dollar strengthened versus the Dollar after UAE pledged to stand behind Dubai\’s banks lifting risk appetite and demand for higher yielding assets. GDP came out 0.4% as expected for the first quarterly gain in a year. RMPI came out weaker with 2.5% versus 3.1% forecast. Overall, USD/CAD traded with a low of 1.0533 and a high of 1.0613. No economic data expected today.
CAD/USD – Last: 1.0555
|
Resistance |
1.0615 |
1.0645 |
1.0690 |
|
Support |
1.0535 |
1.0505 |
1.0450 |
Research by http://www.ufxbank.com
Importance of binary option strategies
Posted by Cedrick Toledano in Binary Options on December 1st, 2009
As there are strategies to be followed always when you wish to earn high profits it is the same when you are trading into the binary options. There are a lot of strategies that are set by the professionals and forex experts when it comes to make huge profits with binary options trading. The basic and the most popularly strategy known by most of the traders is the call and put option strategy. This kind of strategy is basically used when there are sudden changes in the market strategies and that too the changes are very severe.
Most of the times, it is not possible to buy or sell forex binary options at a cheaper or a lower rate. This is because it depends on the conditions of the market and you really do not know when they would just swing back. Some times you would have been picking up some options that might be cheaper and the reason behind this would surely be that even if you do not win these trades you will not lose a much of amount. This kind of strategy is known as the reverse strategy. Some of these strategies depend upon the financial news and the forecasts that appear online or then on the television.
But then most of the times these strategies get affected adversely because of the rumors and the wrong news spread by most of the options traders. This also influences the market prices of these binary options. Any type of news irrespective of it is good or bad will affect the movement of the market. So see to it that you keep yourself updated with all these information when you may be talking decisions with regards to your binary option trading. Most of the times, even the political as well as the environmental issues affect the movement and the price of the options to a great extent.
It as been seen over a period of time that as these binary options is easy to understand there are a lot of traders who have started trading binary options in the forex market. These options have become very exciting as compared to the other kinds of options available for trading this is because these options deliver huge profits most of the times. These options are also very helpful for those traders who do not have a high budget and can afford a little lower loss. in this case it is important for the trader to understand the options trading strategies used by the professionals and the most successful traders ion the forex options market. it is also advisable that you design your own strategy which may be helpful in earning high profits.
GoLearn Forex Analysis 30/11/2009
Posted by Cedrick Toledano in Uncategorized on November 30th, 2009
Moving Averages Are Not So Average by GoLearn Forex
Moving Averages – they are not so average
EUR/USD and USD/CHF
On Thursday of last week we saw the EUR and CHF finally break near term resistance. The EUR cleanly sliced through 1.50 and took out near term resistance around the 1.5055 handle. The CHF finally broke parity with the Dollar after struggling for weeks.
The very next day the Dollar was saved by the news coming out of Dubai. Risk aversion was on as traders unwound short Dollar positions to cover themselves. We discuss Moving Averages a fair amount especially since the 50 SMA has acted as support for such an extended period of time and for a number of currencies such as the EUR and CHF.
The CHF touched .9918 on Wednesday only to give back its gains on Thursday. In the Chart below notice the CHF low on Friday as fear penetrated the market place. As a sense of calm returned the CHF was again bouncing off the 50 SMA, as support held again.
INSERT CHART CHF
The EUR easily breached resistance last Wednesday when the DXY hit new lows for the year. As you can see on the Chart below it closed just below the Fibonacci Retrace level of 76.4%. The very next day the EUR gave back all its gains as the market was reeling from the news of the day.
As details emerged and fear stirred recent wounds in the market the EUR plummeted again. Notice the level the EUR hit before retracing its losses on Friday. The 50 SMA again held support for the EUR.
INSERT CHART EUR
The moral here: Do not discount these as just “average” lines. Even if you question the indicative validity of a moving average the very fact that institutional traders monitor these levels makes them exceptionally important if for no other reason.
Mixed Day for Global Equity Markets After Dubai’s Announcement by GoLearn Forex
It was a mixed day for the Global Equity Markets on Friday following Dubai’s debt default announcement the day before. The markets in Asia continued to sell off while in Europe they apparently felt the exposure was sufficiently contained. In the U.S on Friday after returning from Holiday the day prior, it was the DJIA’s turn to take some risk off the table as it closed lower by 154.48 points to 10,309.92 Opening session futures are pointing positive in premarket hours.
The United Arab Emirates (UAE) Central Bank issued a statement indicating they would offer financing to the local and foreign banks at 50bp over the 3month local benchmark rate. This facility offered by the U.A.E C.B will ensure liquidity and restore some confidence in the market.
On the economic data docket for Monday we have a number items set to print out of the U.K. However, forex traders will be analyzing Black Friday sales numbers as well as the ensuing weekend figures. Currently, net sales figures look to be on par with last year. Additionally for Monday, Euro-zone CPI will hit the wire as will Canadian GDP.
Upcoming Forex Events for November 30, 2009
EUR CPI (YoY) Forecast 0.40% Previous -0.10%
CAD GDP (MoM) Forecast 0.40% Previous -0.10%
USD Chicago PMI Forecast 53.00 Previous 54.20
AUD Interest Rate Decision Forecast 3.75% Previous 3.50%