Author: FX_Trdr

By Alex Cadens – It is no secret that the Forex market can be a very profitable place to be if you want to make money by trading currencies.

However, it is also no secret that achieving consistency within the Forex market requires a lot of preparation (you need education and reliable trading tools) because not only you need to have a good idea of where the price is about to move, but also how far it is going to go.

For instance if you are trading the EUR/USD pair and you decide it is a good idea to go long, you would place a “buy” order, because you are expecting the price of the Euro against the dollar to go up.

If you placed your trade using 1 mini lot (this equals $1 profit for every pip), and your target for that trade is 30 pips, you would need to have at least $1,000 in your account to meet margin requirements and allow some room for drawdown, and if the trade is successful you will make $30 in profits.

However, in order for this to happen the price of the Euro has to move 30 pips against the dollar, otherwise you will not reach the intended target and realize the profits. As you can see, if you trade the Forex market using the traditional approach you will have not only to predict where the price is going, but also how far it is going, which simply makes it twice as difficult.

Now, if you have $1,000 in a binary options trading account, what would you need in order to place a successful trade, and moreover, what kind of profits a successful trade would deliver for you?

In order to answer this question, let us assume that the price of the EUR/USD is at 1.47849 and based a given analysis of the market (e.g. swing trading pattern recognition) you think that the Euro is trending up against the Dollar.

In this case you would go long as well, but instead of placing a “buy” order for currency, you would simply buy a $100 call option for the EUR/USD pair with a 1 hour expiration. If you are right and the price goes up, even if it is only 0.001 pip above the price you purchased your call option (which is the strike price), and it remains there or above until expiration, you would get as much as 75% return on your $100 investment.

In other words, a single $100 trade could easily deliver $75 in profits and you could repeat this process several times during the day.

But the remarkable thing here is that you did not need the price to go up 30 pips in 1 hour to get a 75% return on your investment, you only needed 0.001 points of variation to achieve this.

In this scenario you certainly had to determine in what direction the price was going to move (this is usually an ingredient of the trading process) BUT your forecast did not have to take you all the way to a 30 pips increase in the price in order for you to make get the expected return, because you got it with just 0.001 points of variation, and you made $75 instead of $30.

Also, you can open a binary options account with only $100 and you can trade with as little as $30 with no commissions charges.

So as you can see, the potential of Forex trading through binary options is huge and the process is far simpler thus increasing your chances for profitable trades, however, you do need to have a sense of where the market is going. Provided that you have this, you are likely to make take far more winning trades than losing ones and a lot more money as well.

If you are new to binary options you can Gain FREE Access to a complete trading package that will teach you how to accurately find the direction in the price of any asset, currency or index, thus enabling you to be profitable at Binary Options Trading.

About the Author

Doing business online and being successful at it is something achievable by literally anyone willing to go for it, provided that you have the necessary know-how as well as quality tools and resources by your side. Learn more at the Online Business Review

By Gabriel Knight – Day trading has opened up a lot of different ways to trade such as regular stocks, futures and now Options. It is common for day traders to trade one or even a combination of these assets. Since there are options in futures and stocks, options can still be traded nevertheless. An option is basically an asset with conditions embedded with the asset, hence the name options. There are two types of options: a call option and a put option. A call option is when the buyer would like to buy an asset on or perhaps before a designated date, usually including an extra interest for this option to buy it at a later date than the day of the agreement. The put option not only allows the buyer to purchase the asset at a certain date, but also reserves the right to sell it whenever he pleases, whether later on or right away.

Trading options is a great way to profit as a day trader. It would also be helpful and an advantage to be able to understand the options of the assets you are trading. In most cases, the buyer will be the one to benefit, since he would have to be the one to shoulder the fee to avail of the option. This is why you must really be certain and understand the option you are trading. It is when you do, which makes options trading very profitable. Options, depending on whether it is short- or long-term, have two very opposite sides of the coin. In the long-term, the option has a low risk but high profit and vice-versa with short-term. Therefore, do your homework when dealing with day trading options. It might be worth the extra work.

About the Author

Are you looking to make a daily income by learning the secrets of day trading options? Visit http://www.eminitradingstrategies.com for a free video on how to trade for a daily income!

By Adam Hewison – Yesterday, 11/12/09, the gold market took its first corrective action on the downside. The question many traders will have now is, have we hit the high end for gold this year?

In my latest video I examine that question in some of the internals that I see and feel are important in this market.

As always our videos are free to watch and there is no need to register.

Watch the Gold Video Here…

Adam Hewison
President, INO.com
Co-creator, MarketClub

By CountingPips.com

The Eurozone economy emerged from recession in the third quarter according to a final estimate by Eurostat released today. The 16-nation eurozone gross domestic product advanced by 0.4 percent in the July to September quarter following a GDP contraction of 0.2 percent in the second quarter. The eurozone had registered five straight quarters of declining growth and experienced its first recession on record.

The contraction in GDP failed to surpass the expectations by market forecasters of a 0.5 percent gain for the economy. On an annual basis, the eurozone economy was still 4.1 percent below last year’s third quarter level following the second quarter’s annual contraction of 4.8 percent. Economic forecasts were looking for an annual decrease of 4.5 percent.

The EU27 saw a rise in GDP by 0.2 percent for the third quarter while on an annual basis GDP was down by 4.3 percent.

Germany, the eurozone’s largest economy, which emerged out of recession in the second quarter, saw a GDP gain of 0.7 percent for the third quarter. France, the eurozone’s 2nd largest economy, showed GDP growth of 0.3 percent for the second quarter in a row.  Other EU16 countries showing a positive GDP in the quarter were Belgium, Italy, the Netherlands, Austria, Portugal and Slovakia.

Despite the positive GDP data, the euro has been mostly losing ground today in the currency markets. The euro has fallen against the Swiss franc, Canadian dollar, British pound, Australian dollar and New Zealand dollar while gaining against the US dollar so far today.

EUR/CHF Daily Chart – The Euro falling today versus the Swiss Franc in forex trading.  The EUR/CHF is falling to levels where there has been previous heavy buying. The Swiss National Bank has intervened this year in order to keep the franc lower and avoid deflationary pressures in Switzerland.  The 1.5080 level has been a significant support level for this pair and will present a test of franc strength.

By Fast Brokers – Gold experienced a 2nd retracement to the psychological $1100/oz level after topping out around $1120/oz.  Gold’s weakness came with pullbacks in both the EUR/USD and AUD/USD as investors locked in profits and headed for safety amid slight investor uncertainty.  However, gold is bouncing off $1100/oz and our 2nd tier uptrend line as the EUR/USD, AUD/USD, and S&P futures recover some of their intraday losses despite a wave of negative econ data from both the EU and U.S.  EU GDP and U.S. consumer sentiment data releases all printed below analyst expectations, indicating the global economic recovery may be more gradual than anticipated.  The S&P futures initially reacted negatively to the news, yet investors are trying to pull the futures back up towards 1100.  However, it’s difficult to imagine the markets will end the day positively considering there’s not much of a silver lining to today’s data flow.

Regardless, gold has held strong above $1100/oz despite two retracements.  Therefore, the precious metal’s upward momentum is still intact, though the uptrend’s patience is being tested.  After all, gold has been on a furious rally lately and some profit taking would not be out of the ordinary.  Meanwhile, investors should continue to monitor activity in both the EUR/USD and AUD/USD since gold is more closely correlated to these two major Dollar crosses.

Technically speaking, we’re still not able to place a downtrend line on our chart with confidence, meaning 11/12 highs will serve as the next topside barrier.  As for the downside, gold still has multiple uptrend lines serving as technical cushions along with intraday, 11/10, and 11/05 lows.  Meanwhile, $1100/oz could continue to have a say due to its psychological relevance as of late.

Present Price: $1107.05/oz

Resistances: $1108.08/oz, $1110/59/oz, $1114.39/oz, $1117.87/oz $1122.54/oz

Supports: $1103.09/oz, $1100.46/oz, $1097.83/oz, $1093.33/oz, $1088.64/oz, $1083.12/oz

Psychological: $1100/oz.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The USD/JPY has managed to bottom out above 11/11 lows and our 2nd tier uptrend line despite a pullback during the Asia trading session.  The USD/JPY’s behavior has been erratic lately as investors debate how to deal with the currency pair’s highly psychological 90 level.  Therefore, the USD/JPY has been a tough read the last week as far as correlations are concerned.  However, a near-term pattern could development at the beginning of next week with the release of Japan’s Prelim GDP data along with U.S. Retail Sales.  Stronger than expected GDP data combined with weak Retail Sales could lead investors to prefer the Yen over the Dollar, thereby weakening the USD/JPY.  Such an occurrence isn’t out of the question considering China’s Retail Sales and Industrial Production data outperformed earlier this week while America’s UoM Consumer Sentiment number disappointed today.  We’ve witnessed an increase of import demand from China, and Japan likely benefitted from this development considering China is its largest trading partner.  However, we will have to see how the data pans out before proceeded with more in-depth fundamental analysis.

Meanwhile, the USD/JPY still has our 1st and 2nd tier uptrend lines serving as technical supports along with 11/11, 11/02, and 10/14 lows.  Therefore, the USD/JPY has quite a few technical cushions in place should conditions deteriorate.  As for the topside, the USD/JPY is still mired in its long-term downtrend and faces multiple downtrend lines along with 11/12 and 11/06 highs.  Furthermore, the psychological 90 level serves as both a technical cushion and barrier.  Therefore, the USD/JPY may need a sizable jolt to proceed in a more definite direction.

Present Price: 89.68

Resistances: 89.77, 89.92, 90.04, 90.19, 90.31, 90.43, 90.58, 90.72

Supports:   89.54, 89.43, 89.26, 89.15, 88.99, 88.85

Psychological: 90, November and October Lows

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The GBP/USD is topping out just below 1.67 after strengthening yesterday despite a sizable weakness in the EUR/USD.  The Pound’s relative strength is highlighted by a pullback in the EUR/GBP, and stems from Britain’s much better than expected Claimant Count Change number from Wednesday.  Britain’s relative inactivity on the newswire after this data release has allowed the GBP/USD to hold up pretty well considering investor uncertainty over the last 24 hours.

However, although Britain has been quiet, today’s econ data from the EU and U.S. have been disappointing all around.  The EU’s GDP data came in below analyst expectations, confirming that the EU’s economic recovery is occurring at a more gradual rate than anticipated.  Meanwhile, the U.S. Trade Balance widened, Import Prices printed 4 basis points light, and the Prelim UoM Consumer Sentiment number is discouraging.  The S&P futures and crude are both moving lower in reaction to today’s wave of data, meaning the GBP/USD may not be far behind due to the Dollar’s negative correlation with equities.  Furthermore, investors should keep in mind that BoE Governor King announced that the central bank is still open to addition liquidity injections should the conditions warrant it.  Therefore, if U.S. equities selloff today, the Pound’s excitement over unemployment data may wear thin.

Technically speaking, the GBP/USD has some solid near-term supports in place due to the Pounds recent relative strength.  The Cable still has our 1st and 2nd tier uptrend lines serving as technical cushions along with 11/12 and 11/05 lows.  Additionally, the Cable’s psychological 1.65 level could work in the currency pair’s favor shout it be tested.  As for the topside, the GBP/USD also faces multiple downtrend lines along with 11/11 and 11/09 highs.  If the Cable should break through these technical barriers, the psychological 1.70 level should serve as the next important topside technical.  Meanwhile, investors should keep an eye on the S&P futures and well as monitor gold’s ability to hold above $1100/oz.

Present Price: 1.6637

Resistances: 1.6666, 1.6694, 1.6730, 1.6761, 1.6797, 1.6828

Supports: 1.6615, 1.6598, 1.6574, 1.6528, 1.6497, 1.6466

Psychological: 1.65, 1.70, August Highs, November Lows

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The EUR/USD is pulling back today after bouncing off of our previous 1st tier uptrend line.  The EUR/USD failed to break through our previous 2nd and 3rd tier downtrend lines on Thursday, and instead opted register a brisk decline despite a lack of econ data economic data besides EU Industrial Production (0.3% vs. 0.6% expected).  However, today’s wave of econ data shows that yesterday’s pullback was warranted.  German and French Prelim GDP numbers both came in below analyst expectations while the EU Flash GDP figure printed weak as well (0.4% vs. 0.6% expected).  Today’s wave of disappointing data tacks onto Tuesday’s negative ZEW Economic Sentiment numbers.  Hence, this week’s data flow indicates that the EU’s economic recovery is occurring at a more gradual rate than anticipated.  This realization is putting relative downward pressure on the Euro, as exhibited by the downturn taking place in the EUR/GBP following a consolidation period.  Hence, the ECB may be hard pressed to tighten its alternative liquidity measures come December, although we will have to see how upcoming data points pan out.

Meanwhile, yesterday’s better than expected U.S. Unemployment Claims data failed to excite investors, indicating the bulls may be running out of steam.  We’re currently waiting on Prelim UoM Consumer Sentiment.  However, we have already received data showing the U.S. Trade Balance widened more than anticipated and import prices came in 4 basis points below analyst expectations.  Therefore, a weak consumer sentiment number could drive the S&P futures into negative territory today and possibly extend intraday lows in the EUR/USD since the two investment vehicles are positively correlated.  Despite present weakness in the EUR/USD, the currency pair does have a few more technical cushions to fall back on should today’s pullback accelerate.

We’ve initiated three new uptrend lines to go along with our previous 1st tier uptrend line (now our 4th).  Our new uptrend lines are tightly spaced, indicated there could be some heavy support around this zone should it be tested.  In addition to our new uptrend lines, the EUR/USD also has 11/06 and 11/02 lows serving as technical cushions along with November lows should they be reached.  As for the topside, we’ve readjusted our downtrend lines to compensate for present weakness.  Therefore, the EUR/USD still faces multiple downtrend lines along with 11/05 and 10/15 highs.  Meanwhile, the currency pair is drifting further away from its highly psychological 1.50 level, making accelerated topside movements more difficult to attain.

Monday’s trading session will kick off with a bang as we receive Japan’s Prelim GDP, EU’s CPI, and Retail Sales data from the U.S.  As a result, recent volatility could carry over into next week’s trading session.  More weaker than expected econ data results, particularly U.S. Retail Sales, could place further downward pressure on the EUR/USD and test the patience of the currency pair’s uptrend lines in the process.

Present Price: 1.4848

Resistances: 1.4883, 1.4907, 1.4934, 1.4950, 1.4966, 1.4987

Supports: 1.4839, 1.4822, 1.4811, 1.4793, 1.4779, 1.4764, 1.4729

Psychological: 1.50, November Highs and Lows

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Adam Hewison – On Wednesday, 11/11/09, the Dow Jones Industrial Index rallied to a 50% retracement level based on MarketClub’s Fibonacci measuring tool. The action today indicates that this level is very important and that it could be an important top for this market.

In my latest video I cover both the Dow and the S&P 500 and tell you what I think is going to happen to both of these markets in the near and intermediate term.

As always our videos are free to watch and there’s no need to register.

Watch the New Video Here….

Adam Hewison
President, INO.com
Co-creator, MarketClub

Source: ForexYard

The Dollar rate today is set to be highly determined by the publication of the U.S. Trade Balance at 13:30 GMT. Other U.S. data will also play a pivotal role in the forex market today, such as the Import Prices at 13:30 GMT and the Prelim UoM Consumer Sentiment at 14:55 GMT. It’s also recommended that you follow the EUR Flash GDP results at 10:00 GMT. All the data mentioned will help determine the outcome of the USD and EUR’s man crosses later today.

Economic News

USD – Dollar Rises on Geithner Comments

The Dollar broke its recent trend yesterday, as the greenback strengthened against the EUR. Calls by Pacific nations for the Dollar to appreciate and comments by Treasury Secretary Timothy Geithner helped send the Dollar significantly higher. Geithner remarked that the federal government may require less borrowing than was initially anticipated to help alleviate the financial system. Also comments coming from the Asia-Pacific Economic Cooperation group were Dollar positive.

The EUR/USD rate fell sharply to its lowest level in a week, trading as low as 1.4821. The last time the pair was at this level was the previous week when the U.S. released the Non-Farm Payrolls. The pair ended Thursday’s trading down at 1.4859, from an opening price of 1.4989. The pair was down 0.8% for the day.

Today traders will look at the key U.S. Trade Balance numbers which are set to be released at 13:30 GMT. The data measures the difference in value between imported and exported goods and services for the previous month. This data is directly used in the valuing of currencies. The recent weakness of the Dollar may help reduce the value of the trade balance. If the outcome is less than the expected -$31.8B, we may see the EUR/USD continue its fall below the 1.4750 level.

EUR – EUR Falls with Equity Markets

Trading of the EUR/USD continues to track the level of risk in the market. As traders feel the opportunity to trade more on risk, the EUR/USD rate begins to rise. The opposite of this theory sides with a decrease of risk taking during the trading day. Traders pile into the Dollar as financial uncertainty creeps in and risk taking evaporates. This is also seen in the stock market. As the assumption grows of a recovering global economy, stocks are sent higher. When financial data fails to satisfy investor’s expectations, the stock market falls. Yesterday the Dow Jones Industrial Average was down 0.91%.

The EUR was influenced very little yesterday after industrial production in the European-Zone rose 0.3% for the month of September. The forecast for the economic indicator was expected to rise by 0.5%. Despite the negative outcome, the EUR/USD reacted mostly from negative equity markets.

Trading for the EUR/USD pair may continue to be pushed by movements of the equity markets. Traders should typically keep the values of equities in mind as the EUR/USD does see an affect from the performance of equities. The pair is currently trading near the 1.4870 mark. We can expect a potential trading range of the pair between 1.4960 and 1.4810 today.

JPY – Trade Policy on Tap with Obama in Asia

Traders are following the visit of President Barack Obama to Asian nations both today and this weekend. Any hint that he is supporting a strong Dollar policy could be beneficial to the USD/JPY cross. The president will be stopping in Japan, China, Singapore, and Korea, as he will meet with other world leaders. Traders will also be following any potential policy shifts over this weekend’s Asia-Pacific Economic Cooperation meeting.

Yesterday the USD/JPY traded higher, breaking the 90.50 resistance level, but failed to hold its gains. The pair eventually settled at the 90.26 mark, up from 89.78. As for today, it would be wise choice for forex traders to follow the key data releases from the U.S. and the Euro-Zone. The results of these will help determine the level of the JPY’s key crosses.

Crude Oil – Crude Falls as the Dollar Recovers

Crude Oil prices plummeted 3.7% yesterday, as U.S. data presented a lower demand and an increase in imports which raised the level of Crude Oil Inventories. A stronger Dollar also helped to accelerate the price decline in Crude Oil. Crude Oil finished the day down at $76.32 from an opening price of $79.29. This was as Crude Oil stocks rose by 1.8million barrels over the previous week. The increase was over 1 million barrels higher than market forecasts.

A stronger Dollar also helped to reduce the price of Crude. The typical relationship between Crude Oil and the Dollar has Crude Oil falling when the Dollar rises. The range trading between the levels of $78-$80 we have seen this past week was broken yesterday. Perhaps today the price may rebound back to the lower level of this range near $78.25 to close out this week’s trading.

Technical News

EUR/USD

The EUR/USD pair experienced much bearishness yesterday, and now stands at the 1.4870 level. The chart’s oscillators seem to be showing misleading signals. On the one hand, the MACD of the weekly chart signals that the pair may make a bearish move for today. On the other hand, the recently formed bearish cross on the 4-hour chart indicates that a bearish move for the pair may be imminent today. Entering the pair when the signals are clearer seems to be the wise choice for today.

GBP/USD

The pair has been range trading between the 1.6510 and 1.6800 levels in the past few days. The RSI of the hourly chart shows that the cross is floating in the overbought territory, signaling that we may see a downward move for the pair in the coming hours. Entering the pair when the downward breach occurs may turn out to bring big returns today.

USD/JPY

The pair has been range trading for a while now, with no specific direction. The daily chart’s Slow Stochastic is providing us with mixed signals. The 4-hour chart does not provide a clear direction as well. Waiting for a clearer sign on the hourlies chart might be a good strategy today.

USD/CHF

The bullish trend is loosing its steam, and the pair seems to consolidate around the 1.0160 level. The 4-hour chart’s Slow Stochastic is showing a fresh bearish cross, suggesting that a downwards correction might take place in the nearest time frame. When the downwards breach occurs, going short with tight stops appears to be the preferable strategy.

The Wild Card – Crude Oil

Crude Oil dropped significantly yesterday and it is currently trading around $76.80 per barrel. However, there is a bullish cross on the 4-hour chart’s Slow Stochastic, suggesting that the recent downward trend is loosing steam and that a bullish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.