Trading the News: German Gross Domestic Product (based on Euro Rebound at Risk on Slowing 3Q GDP- More Dovish ECB Ahead? article) Germany’s 3Q Gross Domestic Product (GDP) report may highlight a
Believing in Your Method (based on dailyforex.com article)
There are several trading methods used in Forex:
Day trading has become very popular of late. Day trading involves sitting in front of your computer all day and sometime nights as well. You make money by buying and selling on small price movements. Day trading is typically trading that is based on technical indicators with the occasional news thrown in. Day trading requires skill that is honed through experience. Novice Forex traders should not choose to day trade Forex.
Scalping is another popular method of Forex trading. The main goal of scalping is to buy or sell a number of shares at the bid or ask price and then quickly sell them a few cents higher or lower for a profit. Many small profits can easily compound into large gains if a strict exit strategy is used to prevent large losses. You can be successful at scalping for a while, but it is really more like gambling than trading and you can end up losing far more often than wining.
The most successful method of trading is to look at the big picture. A trader can study the charts, interpret the financial indicators and look for the trends that the Forex currency pairs move in over a few days or weeks. This is the most basic method of Forex trading and one that is the least stressful. Setting targets and trading in small quantities can bring small profits but over time, these can accumulate into larger amounts.
Today’s most popular Forex trading method of late is the automated trading. There are several automated versions such as using signal providers. But the newest introduction to automated trading is the robot or EA. This allows the trader to set up a system which will run on auto pilot during the night or any time the trader is not physically available to trade. These robot programs are made available by most brokers but can also be obtained by ordering them through Amazon or other suppliers and installing them in one’s computer. Still, it does take a Forex account with a Forex broker in order to place a trade.
Depending on automation to trade removes much of the excitement of trading and leaves the control in the ‘hands’ of a machine. Still that seems to be the way of the world today and Forex is always one step ahead of the trend.
Always choose the method that works the best for you. But no matter how you plan to trade, always keep your emotions in check, mange your risk/reward ratio, and seek assistance when you need it. Believe in what you are doing and enjoy the ride.
Based on Bearish GBP Momentum at Risk on Hawkish BoE Inflation Report article =========== Trading the News: Bank of England Inflation Report The Bank of England’s (BoE) Inflation Report may heavily
European Central Bank Governing Council member Ewald Nowotny said on Tuesday that Eurozone inflation is likely to remain very low for some time.
Speaking at a banking conference in Vienna, Nowotny said, "We have to take seriously the perspective that we have very low inflation rates for the time to come."
"It is a technical question - when and in what way you react?", the Austrian central bank chief said.
Inflation expectations are stable, he pointed out, adding that there was no fear of inflation or deflation. That said, the deflationary side remains more relevant for policy as of now, he noted.
In contrast to the Federal Reserve, the ECB has not reached the lower bound on interest rates, Nowotny said, echoing comments from some ECB policymakers. Executive Board member Jorg Asmussen made similar comments in a newspaper interview on Tuesday.
Slow Movement Expected (based on forexminute.com article)
The market is expected to have a very low volume today so it may move in a short range, since today is the bank holiday in the U.S., Canada, and France. However, today in the Asian session, the major pairs including the GBP/USD and the EUR/USD gained a few points but are now set to fall yet again. The euro is playing at 1.3402 level in the European session where it has strong resistance level at 1.3410 and 1.3419 which actually dissects it from the bullish zone. The sellers may start entering the market now with very tight stop losses, where the euro may target to test 1.3368 and 1.3335 support level within a day or two. Moreover, the Italian industrial production didn’t satisfy the investors that is why low bullish sentiment is there in the market, where investors are considering carrying on with the bearish momentum that was caused last week as a result of interest rate cut and excellent NFP data.
Short the Pound
On the other hand, similar is the case with the British Pound that is trading just below its today’s pivot point level 1.6027 where this level also separates the pair from bearish to bullish zone. A very good chance for the sellers is there to short the pair with tight stop losses, where they can even use big lots as well. The pair would surely test the 1.5987 support area, breaking of which could take it down to Friday’s low of 1.5956, and then 1.5915.
Yellen’s Speech is Next Big thing
Gold broke its 1280 support level that was its Friday’s low, and tested 1278.7 and is currently trading at 1284.5 level where it is expected to move within this short range and may not breach 1300 psychological resistance level. Much depends on the speech of nominated Chairperson of Federal Reserve Ms. Yellen that is due on Thursday, where investors would be focusing on what notion or hint is given by her regarding the policy that would be carried on by her, and as to when the stimulus plan would be minimized.
Trading the News: U.K. Consumer Price Index (based on ' British Pound to Threaten Key Support on Slowing UK Inflatio ' article) The headline reading for U.K. inflation is expected to narrow to an
Technical Analysis - AUDUSD (adapted from dailyfx article ) AUDUSD has followed through on the reversal that ended the week of 10/25. 10/23 was the day of the top and an outside day reversal formed
Technical Analysis - EURUSD (adapted from dailyfx article ) EURUSD has broken the trend channel that defines action from the July low. Significant levels (the channel in the current situation) are