GoLearn Forex Analysis 16/12/2009

December 16th, 2009

Review Key Support and Resistance Levels for USD by GoLearn Forex

Key Support & Resistance (S/R) Levels:

As the Greenback continues to rally heading into the end of the year we thought it would be a good time to review a couple key S/R levels.  Traders generate S/R based on a number of factors.  One key factor is based on the tenor of the chart the trader is using.  A trader using a tick or minute chart will be less concerned about S/R generated from a 4 hour chart that is 100+ pips from the current handle.  However, that same trader will want to know where the longer term S/R levels sit. If price moves towards those points he can integrate them into his trading strategies thereby profiting and or avoiding losses.

GBP/USD:

The Cable is currently sitting below its 100 day MA which generates an already negative bias.  A candle body below 1.6198 would generate the next Short entry point  Near term profit taking would be the 200 day MA.  If the 200 day MA is breached we would target the low of this range bound period near 1.5683 which also represents the Fibonacci  38.2% Retrace level.  The 38.2% Retrace level was generated from the Sterlings turn around in January of this year.

AUD/USD:

The Aussie has shown great resilience and for good reason.  The RBA had taken a hawkish stance on rates as it was amongst the first to raise rates.  The Australian economy is in relatively good shape.  Additionally, the AUD is a commodity currency and it has ridden the commodity rally. Currently the AUD is sitting just below the 50 day MA.  A candle body appearing below .8944 equal to the Fibonacci 76.4% Retrace level, which also coincides with recent support levels would trigger a near term Short entry.  We would increase the Short position with a close below the 100 day MA, currently holding at .8834.  A long signal would be generated with a close well above near term resistance at .9325.

With the EUR taking a sharp nose dive yesterday it prompts us to look at recent relative price levels on the G-7.  The EUR/USD is the most commonly traded pair in the world.  The price of the EUR has broad implications on the relative value of other G-7 currencies.  Although the below data can be shown graphically it is easier to view price differentials in a table.  If the EUR is a leading indicator of relative  value then the CAD, AUD, and GBP may be in for a minor drop.

Historical

Date  EUR  CAD  AUD  NZD  JPY  GBP

2009-10-02 1.4576  1.0797 0.8652 0.7160  89.8050 1.5946

2009-10-01 1.4545  1.0839  0.8697  0.7149  89.6050 1.5955

2009-09-30 1.4640  1.0695  0.8828  0.7232  89.7050 1.5982

2009-09-29 1.4587  1.0846  0.8703  0.7143  90.0885 1.5961

Current

Date  EUR  CAD  AUD  NZD  JPY  GBP

2009-12-15 1.4533  1.0611 0.9067 0.7224  89.6355 1.6272

chart

US Producer Prices Climb by GoLearn Forex

Global Equity Markets were mixed on Tuesday as Dubai continues to sort out its debt repayment obligations.  In the U.S Producer Prices climbed 1.8% which was more than double expectations.  This caused stocks to retreat as it may engage the U.S Fed to raise rates out of necessity instead of a planned withdrawal from its current quantitative easing policies.  The DJIA slid 49.05 points to close at 10,452. Ahead of the rate decision today traders have consolidated positions as markets may move drastically depending on what language the Fed uses.

There are a number of other economic data releases on the docket for today.  Oil traders will be watching Crude Oil Inventory figures.  CPI data as well as Housing Starts and Building Permits will also be on the wire today.  In the U.K Jobless Claims will print although no major changes are expected.  GDP in Australia has already printed slightly below expectations.

The Greenback continued to advance against its G-10 counterparts with the AUD giving up 1.15% for the day.  The DXY closed above the 100 day MA to 76.961 helping to legitimizing the recent rally.  Gold and Oil were essentially unchanged finishing the U.S session at 1.125.20 and 70.69 respectively.

Upcoming Forex Events for December 16, 2009

EUR CPI (YoY) Forecast   8.00%  Previous  7.80%

USD Core CPI (MoM) Forecast  0.20%  Previous  0.20%

USD CPI (MoM) Forecast    0.40%  Previous  0.30%

USD Interest Rate Decision  Forecast  0.25%  Previous  0.25%

Analysis by http://www.golearnforex.net

Tags: ,
Posted in daily forex analysis | No Comments »

Some Basic Approaches of Currency Options Trading

December 16th, 2009

The currency option trading is something that is not similar to what forex is. It relies greatly on the prediction of the conditions for a currency that needs to be regarded while executing the activities related to your trade. Currency trading in option offers an option to the forex trader to sell or buy any particular asset after some time at a predetermined rate. Entirely, we can say that it is a contract between the option seller as well as the option buyer in time of coming future at a fixed rate which is already determined.

Currency option trading is not a predictable trade. It offers an opportunity to the traders to make large sum of gains or suffer great losses. This market is accessible for twenty four hours a day like that of the forex market. In this kind of trade, the traders however bet on what might happen in future. Therefore, there is a good opportunity of losing your sum because higher amount of risk is included in such a kind of a trade. Many organizations utilize this currency trading option for high against the movements that are not favorable in the rates of currency exchange.

This kind of trade includes any kind of an asset such as a share of a stock, bonds, property, and some other securities, as well. Prior to making use of this option, you should know some of its important facts like the dates of settlements, the size of the contract and the striking rates. There are two terminologies that are being used very often in option trading. These are:
Call option- it says that you are given the right to purchase a specific number of shares
Put option- it suggests that you have a right granted for the selling of those shares.
Striking price- this is the price wherein the option purchaser can implement the option
Settlement date- it is the date when the option expires. Here in options trading, the options have a maturity period of about 1-3 years.

In such a kind of trade, the forex trader needs to keep themselves updated with the ever changing or fluctuating situations. It is a true fact that any single news can bring about great changes in the forex market. Hence, you need to keep yourself completely updated of the news that can bring about drastic changes in the market. At this point, a person’s is also supposed to make an effort to calculate the different risk elements for reducing its effects and making the decisions based on it accordingly. Additionally, it is also significant to learn the basic features of options trading. This will definitely aid you in grasping number of other good opportunities in the coming future.

These were some of the basic approaches of the currency options trading.

Tags: , , ,
Posted in Options trading | No Comments »

Daily Review 16/12/2009

December 16th, 2009

USD Dollar (USD)

The Dollar gained versus 15 of the 16 majors as Industrial Production rose by 0.8% versus 0.6% expected signaling U.S economy is expanding. The FOMC is still expected to keep the Interest Rate today at 0.25% but more economists expect a rate increase to 0.5% until June 2010. PPI came out stronger with 1.8% versus 0.8% expected and TIC Long Term Purchases came out weaker with 20.7B versus 38.3B prior. NASDAQ and Dow Jones declined by -0.50% and -0.47% respectively as wholesale inflation raised concerns the Fed will be forced to raise interest rates. Crude gained by 0.17% closing at 70.81$ a barrel ending a 9 day declining streak. Gold (XAU) gained by 0.29% closing at 1125.70$ an ounce. Today, Building Permits are expected with 0.58M versus 0.55M prior. CPI is expected with 0.4% versus 0.3% prior and Core CPI is expected with 0.1% versus 0.2% prior. Investors are waiting for the FOMC Interest Rate decision that is expected to remain at 0.25%.

EURO (EUR)

The Euro fell versus the Dollar and the Pound after weaker French CPI results, which triggered the Euro\’s decline. German ZEW Economic Sentiment came out 50.4 slightly better than 50.1 expected but ZEW Economic Sentiment came out weaker with 48 versus 50.9 expected. More countries in the Euro zone show signs the recession is still alive. Greece is struggling with its debt and Austria nationalized Hypo Bank. Overall, EUR/USD traded with a low of 1.4503 and a high of 1.4659. Today, German and French Manufacturing PMI are expected slightly stronger. CPI and Core CPI are expected unchanged with 0.6% and 1.2% accordingly.

EUR/USD – Last: 1.4535

Resistance

1.4575

1.4625

1.4685

Support

1.4500

1.4445

1.4410

British Pound (GBP)

The Pound weakened versus the Dollar but gained versus the Euro after CPI came out 1.9% versus 1.8% expected. The CPI figures show inflation is advancing and the U.K won\’t be able to keep interest rates at their record lows. Overall, GBP/USD traded with a low of 1.6205 and a high of 1.6319. Today, Claimant Count Change is expected with 13.9K versus 12.9K and MPC Member Miles will speak in London.

GBP/USD – Last: 1.6275

Resistance

1.6315

1.6350

1.6380

Support

1.6210

1.6160

1.6105

Japanese Yen (JPY)

The Yen dropped versus the Dollar and the Euro as a near US interest rate increase seems likely in the upcoming year. Overall, USD/JPY traded with a low of 88.61 and a high of 89.95 and EUR/JPY traded with a low of 129.54 and a high of 130.73. No economic data expected today in Japan.

USD/JPY-Last: 89.65

Resistance

89.95

90.40

90.75

Support

89.30

88.75

88.35

Canadian Dollar (CAD)

The Canadian Dollar followed the trend and fell against the Dollar but gained versus most other majors as Crude prices rose slightly ending its 9 day decline. Leading Index came out better with 1.3% versus 0.6% and Labor Productivity came out weaker with -0.2% versus -0.4% expected. Overall, USD/CAD traded with a low of 1.0552 and a high of 1.0611. Today, Manufacturing Sales is expected with 1% versus 1.4% prior.

USD/CAD – Last: 1.0615

Resistance

1.0670

1.0700

1.0750

Support

1.0580

1.0550

1.0515

Research by http://www.ufxbank.com

Tags: , , ,
Posted in daily forex review | No Comments »

GoLearn Forex Analysis 15/12/2009

December 15th, 2009

NZD Beginning to Falter by GoLearn Forex

NZD/USD:

The New Zealand Dollar is starting to falter and like most of its G-10 counterparts it is holding at pivotal levels against the Greenback.  One slip either way may send the currency tumbling or ready to resume its advance on the Dollar.  We have mentioned the Kiwi in the past as we feel it may yield the biggest percentage loss when the Dollar does finally rally.

In the graph below we see the formation of a downward sloping Triangle beginning to emerge.  The Kiwi has been riding the 50 day SMA as support on its path to .7600.  You can observe that NZD peaked in late October but after 3 attempts it has failed to break the October high.

DEC-14-NZD

Short term support has been holding near .7100 represented by the bottom leg of the triangle.  As the hypotenuse converges on near term support the more likely it is that a breakout will occur in the direction of the slope.  We have also diagrammed a pattern we use often to identify trend and that is a step pattern whereby there are lower high’s and lower lows (or vice versa as the case maybe).  Typically we like to see more obvious lower lows than what the Kiwi has shown us thus far.

The NZD is currently sitting below its 50 day MA, which we mentioned prior, represented support for the NZD’s move over the last 9 months.  During the Dollar’s rally last week the Kiwi was able to bounce off of the 100 day MA but was not able to bounce back above the 50 SMA.  As price action moves into the wedge of the triangle it may force price below the 100 SMA.

For good measure we added a Fibonacci Retrace starting back in March when the Kiwi dipped below      .50 running through its most recent high in October when the NZD struck .7635.  This data range produces the 23.6% Fibo Retrace at a handle of .6988.  To trigger a strong short signal the Kiwi would need to take out the 100 day MA, near term support (the base leg of the triangle), and the Fibo 23.6% level, as we then target a .6500 handle.  In order to resume a Long NZD position at this point the NZD would need to break north of the hypotenuse, the 50 day MA, and near term resistance at .7525.

Abu Dhabi Sending Financial Aid for Dubai World by GoLearn Forex

World Equity Markets gained some ground Monday amid assurances from Abu Dhabi that they would provide $10 billion in immediate financial aid to ensure Dubai World meets its $4.1 billion debt obligation due yesterday.  The DJIA closed a shade above 10,500 after picking up 29.55 points.

The Greenback gave up a little ground yesterday as the DXY was down marginally to 75.352.  Gold advanced slightly to 1,126.70 as the dollar showed some weakness. Oil was unchanged as it continued to hold below $70 a barrel.

In the U.K CPI data is set to print today.  The Euro-zone’s Current Sentiment/Survey will publish today.  In the U.S a number of economic releases are slated for today; Crude Oil Inventories, Gasoline Inventories, Total Net TIC Flows, Empire Manufacturing Index, and lastly PPI figures will print.  In light of the Dollar’s recent rally expect that traders will be watching these numbers very carefully ahead of tomorrow’s FOMC rate decision.

Upcoming Forex Events for December 15, 2009

EUR German ZEW Economic Sentiment Forecast  50.20  Previous  51.10

CAD Leading Indicators (MoM) Forecast    0.60%  Previous  0.70%

USD TIC Net Long-Term Transactions  Forecast    43.00B  Previous  40.70B

AUD GDP (QoQ)   Forecast  0.40%  Previous  0.60%

Tags: ,
Posted in daily forex analysis | No Comments »

Daily Review 15/12/2009

December 15th, 2009

USD Dollar (USD)

The Dollar weakened slightly versus the majors as the Dollar rally took a relief. NASDAQ and Dow Jones gained by 0.99% and 0.28% respectively as Dubai\’s bailout calmed investor fears. Crude weakened for the 9th straight day lowering by -0.43% closing at 69.57$ a barrel. Gold (XAU) gained by 0.54% closing at 1123.30$ an ounce. Today, PPI is expected with 0.8% versus 0.3% prior. Industrial Production is expected with 0.6% versus 0.1% prior. TIC Long Term Purchases is expected with 38.3B versus 40.7B prior.

EURO (EUR)

The Euro gained slightly versus the Dollar as Dubai World\’s bailout eased banks concerns of major write downs. Industrial Production came out as expected with -0.6%. Overall, EUR/USD traded with a low of 1.4607 and with a high of 1.4685. Today, German ZEW Economic Sentiment is expected weaker with 50.1 versus 51.1 prior.

EUR/USD – Last: 1.4655

Resistance

1.4685

1.4775

1.4825

Support

1.4585

1.4535

1.4470

British Pound (GBP)

The Pound gained slightly versus the Dollar but is still unable to break above or below the 1.6350 and 1.62 range. RICS House Price Balance came out weaker with 35% versus 39% forecast. Overall, GBP/USD traded with a low of 1.6188 and a high of 1.6324. Today, CPI is expected with 1.8% versus 1.5% prior.

GBP/USD – Last: 1.6300

Resistance

1.6340

1.6380

1.6425

Support

1.6250

1.6190

1.6150

Japanese Yen (JPY)

The Yen gained versus the Dollar and other majors after Tanken Manufacturing Index came out stronger than expected. The Yen is set to replace the Dollar in the Carry Trading as borrowing costs in Japan became almost as cheap as U.S loans. Overall, USD/JPY traded with a low of 88.32 and a high of 89.29 and EUR/JPY traded with a low of 129.18 and a high of 130.64. Today, Tertiary Industry Activity is expected with 0.5% versus -0.5% prior.

USD/JPY-Last: 88.75

Resistance

89.00

89.25

89.85

Support

88.35

88.00

87.40

Canadian Dollar (CAD)

The Canadian Dollar remained unchanged versus the Dollar as no major news was released and Crude prices were merely changed. Overall, USD/CAD traded with a low of 1.0484 and a high of 1.0623. Today, Leading Index is expected with 0.6% versus 0.7% prior and Labor Productivity is expected with -0.4% versus 0.0% prior.

USD/CAD – Last: 1.0580

Resistance

1.0635

1.0670

1.0700

Support

1.0550

1.0515

1.0480

Research by http://www.ufxbank.com

Tags: ,
Posted in daily forex review | No Comments »

Learn to Be a Wise Forex Options Trader

December 15th, 2009

If you are a wise currency trader, you will come to know that the best way of understanding the forex market and its functioning is by becoming aware about the options trading. The option trading is one of the best methods a forex trader can follow in order to reduce the losses and increase his gains considerably.

Option trading, here in case of forex is like an agreement amongst the seller and the purchaser. The purchaser is given the right; however not obliged to buy or sell a particular pair of currency within a specific time period. Some of the savvy traders have been developing their own and personalized forex option approach.

Basically, there are 2 kinds of forex option, the call option and a put option.

1.    A call option grants the right to purchase a forex currency
2.    A put option bestows the right for selling the forex currencies.

A number of other options are also available in forex trading, and some of these are being used by big international organizations for reducing their potentials for risks in the totally volatile forex market.

Before you get indulged in this forex option trading, also have a look on the various risks involved in it. Executing trade in one of the biggest marketplace of the world may be unpredictable and there are possibilities of losing a large amount of money if you are not careful enough.

The market do keep on rising and falling regularly. Due to this, you have to keep yourself alert as well as updated and keep on monitoring the market on a continuous basis. You need to evaluate the world events, interest rates and many such crucial factors. Also keep in mind that trading in forex is addictive. It is better to establish your own policy or system of trading wherein you can establish your risk limits in order to avoid left empty-handed and losing everything there.

It is seen that a number of traders prefer to trade in the forex options. This might be due to the fact that they are able to balance the advantages and drawbacks of the trade. The currency options are a contract amongst the options seller and the option buyer giving the right to the buyer to sell or purchase an option without any obligation. The buyer suggests the striking rates and the expiration dates. If the expiry date approaches, he may prefer to implement the option and purchase the currency or he can jut select to allow the option expire valueless. Only he needs to pay the premium for that.

Forex option trading is associated with many benefits as compared to the financial tools used in different exchanges. All these make a trader to go for option trading and try to make your career in it.

Tags: , , ,
Posted in forex options | No Comments »

The Use of forex Option Trading Software

December 15th, 2009

Forex Option Trading has many aliases such as Forex Option, FX Option, Options trading, and Currency Options. Forex market is one of the most volatile markets in the world and it can change in a fraction of a second. Forex Option Trading is totally dependent on the assets of the trader or the broker kept by them as a security to be used in future trading. In Option Trading, the holder of the option can exchange a currency form another currency at a predetermined price known as the strike price. But the difference is that the owner of the option is not compelled to do the exchange if the market trend goes against him or for any other reason.
Forex Option Trading is basically done for two reasons:

1)    To increase his or her Return of Investment.
2)    As a way of ensuring profit on the currency pair being traded, thus reducing the risk.

Now days, many new traders are coming into Forex Trading as it can be done online. The reason behind this is the high potential of return of investment. Forex Option Trading is a very dicey scheme. This is the reason why there is huge volume of ROI in Forex Option Trading. It is so risky that a large amount of security or protection is required for any trading option to be executed. In Forex Option Trading, you can easily find traders trading in thousands of dollars and it even extends to millions of dollars.

When internet was not so popular, the number of Forex brokers or professional traders or experienced Forex merchants in this form of trading was very less. A lot of money was involved in this form of trading. It was very difficult to keep an eye on the market and study the trend of the market. The evolution of the internet has opened many doors and encouraged many people to enter in this form of trading. These days, you can get all the necessary information over the net. The internet will keep you updated about the market movement all the time. Therefore, the internet has evolved the Forex Option Trading market.

There are a number of Automated Forex Softwares available in the market these days. These softwares helps a new trader to plan his strategy that he is going to follow while trading. All such softwares will give you all the necessary information that you need and it will help you to build a solid strategy. As the Forex Options market is a 24 hour market, these softwares will keep an eye on the market all the time on your behalf. You do not have to sit in front of your computer to study the market. These softwares can take care of your trading also. Therefore, Automated Forex Softwares are very helpful for a beginner.

Tags: , , ,
Posted in forex options | No Comments »

GoLearn Forex Analysis 14/12/2009

December 14th, 2009

EUR/USD:

The EUR is perilously close to falling into a tailspin.  We have been stating for some time that a candle appearing below the 50 day Moving Average (MA) would generate a strong signal for a Short entry.  As you can see in the Graph below that signal occurred last week, with the 50 day MA currently holding at 1.4880 while the EUR is trading at 1.46.

The EUR is now on the cusp of an even larger fall. It closed last Friday’s session at the 100 day MA an even more significant breach than the 50 day MA.  Perhaps even more troublesome for the EUR is that it is just a hairsbreadth above 61.8% Fibonacci level at a handle of 1.4621.

INSERT CHART EUR

DEC-13-EUR

A close below the 61.8% Fibo level coupled with a close below the 100 day MA as they converge may equal real trouble for the EUR.  The EUR has not been south of the 100 day MA since April 2009 which coincidently occurred when the 100 day MA and Fibo 23.6% level converged.  The EUR proceeded to advance 14.6% from that point.  We therefore target the 50% Fibo level with a handle of 1.4184 as the next support level should the EUR breach the 61.8% Fibo level.

USD/CHF:

The CHF is another currency holding at a very pivotal level.  With Friday’s session closing just below the 100 day MA the CHF is trying to hold its ground against the Greenback.  The Swiss Franc has been one of the benefactors of Gold’s jump in value.  However, as the Dollar has rallied and Gold prices have begun to fall so has the CHF.

The Franc closed above its 50 day MA for the first time since August, representing only the 3rd such close since April of 2009. This coincided with it’s last close above the 100 day MA.  The Franc has another issue to contend with and that is the 23.6% Fibonacci Retrace level created from the CHF low of 1.20 back in March of 2009.

INSERT CHART CHF

DEC-13-CHF

If the CHF closes above the 100 day MA and the 23.6% Fibonacci level at a handle of 1.0402 is breached then we would expect the CHF to test support at the 38.2% Fibo level or 1.0701.

Bona Fide Recovery Seems in Order by GoLearn Forex

Global Equity Markets closed higher as the prospect for a bona fide recovery now seems assured.  The Markets were able to shake off credit fears and focus on continued positive economic data coming out of the U.S.  On Wall Street the DJIA closed up 65.67 points to 10,471.50 on better than expected Advanced Retail Sales figures.

The Greenback continued it rally as it advanced on positive economic data, breaking the 9 month long “positive equities to poor dollar” correlation, for a second time in 1 week.  The DXY touched 76.725 before retreating slightly to close at 76.573.  Another positive session for the Greenback and it may take out the 100 day MA.

In the commodity space both Gold and Oil were down.  Gold lost 15.60 to close Friday’s session at 1,115.40 while Oil closed just below $70 a barrel for the first time since September 29th.  Gold has lost nearly 9.5% since its high on December 3rd and is just a few dollars away from closing below its 50 day Moving Average.

In the Euro-zone for Monday, Employment figures will be published on Tuesday.  U.S.  PPI numbers will print as well as the Empire Manufacturing data.  In Australia, GDP numbers will hit the wire on Wednesday, as will Housing Starts and Building Permits in the U.S.  However, investors will be tuned in on Wednesday to the FOMC rate decision.  Although no change in rate is expected, traders are hoping for the accompanying statement to shed light on future rate hikes  and economic policy as continued positive economic data continues to print.

Upcoming Forex Events for December 14, 2009-12-14

CHF PPI (MoM) Forecast    0.20%  Previous  -0.40%

EUR Industrial Production (MoM) Forecast    -0.50%  Previous  0.30%

CAD Capacity Utilization Rate  Forecast    67.80%  Previous  67.40%

AUD  RBA Meeting Minutes

Tags: ,
Posted in daily forex analysis | No Comments »

Daily Review 14/12/2009

December 14th, 2009

USD Dollar (USD)

The Dollar continued rallying versus most majors on Friday after Retail Sales and Michigan\’s Consumer Sentiment came out stronger than expected signaling economy is recovering improving Fed Rate Outlook. NASDAQ ended almost flat with -0.03% change and Dow Jones gained by 0.63%. Crude weakened by -1.39% dropping below 70$ for the first time since October closing at 69.87$ a barrel and Gold (XAU) dropped by -0.91% closing at 1114.55$ an ounce on a stronger Dollar. No economic data expected today.

EURO (EUR)

The Euro continued falling versus the Dollar reaching a 2 month low below the 1.46 support level as better economic data in the US led investors to expect a near rate increase. Ireland and Greece are facing major debt concerns that may lead to their exit from the Euro-Zone. Overall, EUR/USD traded with a low of 1.4586 and with a high of 1.4776. Today, Industrial Production is expected with -0.6% versus 0.3% prior.

EUR/USD – Last: 1.4620

Resistance

1.4700

1.4775

1.4825

Support

1.4585

1.4535

1.4470

British Pound (GBP)

The Pound dropped slightly versus the Dollar after PPI Input and Output came out weaker than the forecast. The UK budget deficit keeps growing as the government keeps spending money to spur the economy preventing the Pound from gaining back. Overall, GBP/USD traded with a low of 1.6196 and a high of 1.6338. Today, RICS House Price Balance is expected with 39% versus 34% prior.

GBP/USD – Last: 1.6200

Resistance

1.6275

1.6340

1.6380

Support

1.6160

1.6120

Japanese Yen (JPY)

The Yen weakened versus the Dollar and the Euro as economic conditions improve and a future rate increase in the U.S seems more likely. Overall, USD/JPY traded with a low of 88.26 and a high of 89.81 and EUR/JPY traded with a low of 129.97 and a high of 131.59. No economic data expected today.

USD/JPY-Last: 88.40

Resistance

89.30

89.85

90.10

Support

88.25

88.00

87.75

Canadian Dollar (CAD)

The Canadian Dollar weakened versus the Dollar as Crude dropped beneath 70$ a barrel on stronger Dollar sending the high yield commodity related Australian and Canadian Dollar lower. Overall, USD/CAD traded with a low of 1.0484 and a high of 1.0623. No major economic data expected today.

USD/CAD – Last: 1.0610

Resistance

1.0630

1.0650

1.0690

Support

1.0540

1.0500

1.0480

Research by http://www.ufxbank.com

Tags: ,
Posted in daily forex review | No Comments »

Trade the Forex Options in Few Easy Steps!

December 14th, 2009

A majority of the forex investors are not aware of heard about the forex options. The remaining some who is aware of these forex options, they assume that it is too complex to use and therefore, very rarely people are seen trading in the forex options. That is however, not good news.

So, let us consider these forex options in details:

The forex options enables the investor the right only and not the obligation of selling a put option or purchasing the call option that is regarded as an asset at a particular rate called the strike price. The right to sell or buy a principal asset, you have to pay premium to the option holder, no matter if you select to utilize it or implement the right. It is all based on the movements in the forex market during the time of the option expiration.

Learn the following terms to know more about forex options and ease your trading process:

•    Call options- it offers the holder of an option a right in return of paying premium, however does not oblige to purchase the principal asset at a particular rate at a particular time period.

•    Striking price- it is also referred as the exercise price. It is a price wherein the holder of an option can purchase or sell the principal instrument.

•    Put option- it provides the holder of an option the right and not an obligation to sell the principal assets at particular rates within a particular time span.

•    Value date- it is the date when the funds settlement takes place in your account for a trade deal. Here, in case of forex, there are generally 2 banking days from the execution of your banking account.

•    Exercise date- you would implement an option whenever you have the right to sell or buy the principal asset at the rate declared in the option agreement.

•    Forex vanilla option- it is a simple option without any special features, as such similar to that of the future or stock options.

Being a forex option trader, one can easily take the benefit of it from the forex market. No matter, whether the forex market moves in the upward or downward direction, you can make your gains form that. Varied approaches will bring varied amounts of premium to you. It is a common saying that “Past varies from the present and present varies greatly form the future”. The forex market is an unstable market that will keep on undergoing changes. There are numerous profitable approaches that might turn unfavorable, but forex one remains the same always. So, why not give it a try and try your luck in nothing else, but forex options trading, the best form of trading.
Wish you all the best and good luck!!!!

Tags: , , ,
Posted in forex options | No Comments »

« Older Entries
Newer Entries »