How are currencies traded in the FOREX market

Commander in Pips: Well, the whole system of quoting prices is very simple. Currencies are traded in pairs. All possible pairs have already been created and available for trading. Other words, you will trade not a separate currency, but the pair and the quote is an exchange rate one currency to another. Pipruit: Wait a minute, what do you mean by “in pairs” and by “all possible pairs”? Commander … [Read more...]

EUR/USD Daily Video May 17, 2011

Good morning, Although retracement up due weekly momentum could start soon, current sutuation suggests a lot of different scenarios. So, let's discuss, what will be perfect for us, and what is possible at all: ForexPeaceArmy | Sive Morten EURUSD Daily 05.17.11 The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary … [Read more...]

Default Forex Signal (Thu May 12 2011, 8:30am NY Time EST) – US Core Retail Sales – Yesterday, 08:48 PM We’ll be getting the U.S. Core Retail Sales (and Retail Sales) figure out tomorrow. As high impact news releases are concerned, Retail Sales make up about 2/3 of U.S. GDP (Gross Domestic Product); Core Retail Sales report excludes Auto sales which comprises 20% of total retail sales. Therefore, we are more focused on daily consumer spending on goods found in such places as department stores, gas stations, and restaurants. Here’s the forecast: 8:30am (NY Time) US Core Retail Sales Forecast 0.7% Previous 0.8% ACTION: 1.2% BUY USDJPY / 0.2% BUY GBPUSD The Trade Plan The plan to trade this release is straight forward. We are going to wait for 1.2% release or better to BUY USD/JPY, or a 0.2% or worse to BUY GBP/USD. If we get a in-between release, we’ll need to look at the pre-release market condition and sentiment in order to make a decision, or just stay out of the market altogether. We will trade this news release using after news retracement method, I will pay attention to both headline and Core Retail Sales figures, but my focus will be on the Core figure. For more information on my trading method: Henry Liu’s Trading Method The Market Today’s report will give us an indication of the economy’s current health. Bloomberg reports that sales are expected to have climbed in the past month which demonstrates that employment gains are carrying consumers through soaring fuel and food costs. Retail Sales climbed 0.6% in April after a 0.4% increase in March and Core Retail Sales are expected to jump 0.5% as well. Last Month, 244,000 payrolls were created despite a 9% rise in the jobless rate. Still, the improving job prospects is leading the way for consumer spending while gas prices have soared to almost 30 cents above the previous national average. Despite the increase at the pump, high prices are also contributing to the positive retail sales report. Additional Thoughts Since both releases (Core Retail Sales and Retail Sales) are scheduled together, if we get a conflict in the releases, we should stay out regardless whether or not we get our tradable deviation. Pre-news Consideration There should be no pre-news trading. DEFINITION: “(Retail Sales Core) Derivative of Retail Sales that excludes the Automobile Sales component. Automobile Sales make up roughly 25% of Retail Sales, but they can be very volatile from month to month and can distort the picture. Retail Sales with the exclusion of this volatile component is thought to be a better indicator of the underlying trend in consumer spending.” Historical Chart and Data for US Core Retail Sales

We’ll be getting the U.S. Core Retail Sales (and Retail Sales) figure out tomorrow. As high impact news releases are concerned, Retail Sales make up about 2/3 of U.S. GDP (Gross Domestic Product); Core Retail Sales report excludes Auto sales which comprises 20% of total retail sales. Therefore, we are more focused on daily consumer spending on goods found in such places as department stores, gas … [Read more...]

FOREX PRO Weekly May 09-13, 2011

Monthly As we’ve specified couple of weeks ago in fundamental part of research – EUR could continue its growth only if Germany economy will continue to show strong data, and ECB will continue to hike rate. Neither former nor latter has happened. Although US economy pace is shallow also and Fed action looks indecisive and anemic – this substances are static currently, better than expected NFP data … [Read more...]

AUD/USD Daily Alert May 05 2011

Monthly Now we start with new months, so today we have some additional details - overbought area for May stands at 1.4933. Also market has erased all Fib resistances from the recent swing down. Now the major importance for us is high at 1.5144 (red circle). If market will take out this level – then large down AB-CD pattern will be cancelled, since 1.5144 is a “C” point and market will get a free … [Read more...]

EUR/USD Daily Video, May 04, 2011 – Today, 07:13 AM

Good morning, Market continues its coliling and building an energy. Until we will not see clues that will help us estimate the direction of future breakout - trade market accordingly - use tight stops and move them to b/e as soon as market will allow to do that: EURUSD Daily 05.04.11 The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number … [Read more...]

Forex Signal (Wed May 4 2011, 8:15am NY Time EST) – US ADP Non-Farm Employment Change

ADP or Automatic Data Processing (NASDAQ:ADP) is releasing it’s own estimate for the private sectors of NFP (Nonfarm Payroll). This is a high impact release and it’s followed by currency traders as they look for hints on Friday’s NFP official release. Here’s the forecast: 8:15am NY Time US ADP NFP Change Forecast 200K Previous 201K ACTION: 250K BUY USDJPY / 150K BUY EURUSD The Trade Plan I … [Read more...]

Forex Signal (Fri May 2 2011, 10:00am NY Time EST) – US ISM Manufacturing PMI

ISM or Institute for Supply Management is releasing its PMI (Purchasing Manager Index) today. As a leading indicator, traders generally pay attention to this report for hints of economic trend. Here’s the forecast: 10:00am NY Time US ISM Manufacturing PMI Forecast 59.9 Previous 61.2 ACTION: 62.4 BUY USDJPY / 57.4 BUY EURUSD The Trade Plan We’ll be looking for around 2.5 points of deviation … [Read more...]