Archive for December, 2009
Analytical report of major currency pairs
Due to number of holidays in this week and the new year is coming closer the Forex trading platform is expected to remain weak in this week and some big changes may appear in 2010 that will be fruitful for the global market.
Let’s look at the analytical report of the market until the changes takes place at the market.
EUR/USD: Presently, trading at the level of 1.4372 and consolidating after arriving at the level of 1.2331.
The technical indicators stayed neutral and the trade points stayed in between 50-day to 200-day moving average with current trade position at 1.4793 and 1.4169.
The low trade point is at 1.4216 that is few trade pips above the 200-day moving average extension.
The intraday trading expected to have positive Forex spreads of around 1.4499 resistance level trading with initial support of 1.4350.
USD/JPY: Presently, trading at the level of 91.72 after replenishing from the downtrend of the 87.12, the trading level sustained below the 50-day and 200-day moving average with current trade position at 89.50 and 93.54.
The present trade consolidated level is at 91.89 heading to the test point at the resistance level of 92.40 and the trend reversal is expected at the support level of 90.61.
GBP/USD: Presently, trading at the level of 1.6008 and the pair is moving ahead of the downtrend after achieving the peak of the 1.7042 and its trading pips are under 50-day to 200-day moving averages with the trade levels at 1.6454 and 1.5258.
There is break expected above resistance point of 1.6040 and this trading move will set the trade point at 1.6167 levels. The whole trading response is neutral and is in between the 1.59 to 1.6167, trade range because of last year trading condition of the Forex session.
These are the analytical reports of the Forex currency pairs and their trading position with respect to the market condition.
Tags: Currency pair, Forex, Forex spreads, Forex Trading
Forex Resolutions for 2010
Year 2009 has brought with it some bad phases of the economic and enforced the USD to trade under extreme pressurized condition of the market with low produce and empowered risk appetite.
USD at the end of the month traded well with the support of improved economic outlook and Fed Reserve decision regarding the changes in the interest rates would lay down some impact on Forex.
The trade shifts in the market points towards rally of USD in the beginning of the 2010 due to interest rates differential and its connection with risk appetite suspected to break. The major points of concern in the coming days will be Fed decision related to withdrawal of stimulus and suspected changes in the interest rates.
The Fed policy entirely depends on US labor market as Fed pointed that the increase in rates will continue until there is increase in number of jobs.
• Fed withdraws its stimulus financial support, USD trade will drop down
Traders have preparing themselves before any big break outs take place in the USD carry trade and started accessing USD and utilizing those red-empted USD to endow in stocks, commodities, properties and emerging markets.
The USD carry trade that points the fact that interest rates will sustain to remain close to zero and it is not at all an economically good decision to make investment in USD. There are signs that points that USD undergoes rallying if the Fed decided to withdraw its stimulus plan providing support and assistance to the market to recover from the economic breakdowns.
December meeting of Fed discussed points regarding ways to exit from the quantitative ease and announced that some plans would be discarded out in the coming weeks. In addition, it also acclaimed that they will continue to maintain low-yields for an unmitigated period but showed no signs about the time of increasing the rates.
There are indications that the risks in the USD trade will carry on with some breakdowns in 2010, the indirect relationship in between equities and USD trading expected to fade out in the 2010. The complete focus will be on the produce differential and the increasing bond yield will improve the trades in the coming trade session of the market.
There are huge expectations from the Forex trading market and the trade moves in the currency pairs in 2010 as Fed will gradually put into action their exit strategies.
Tags: Currency pairs, Forex, Forex Trading
