Euro Hurt By Weak Data, Nowotny Comments

The EUR/USD was lower today, retesting the 1.3700 level in Asian and morning European trade today after a series of disappointing consumer spending reports and new comments the from ECB member Ewald Nowotny put pressure on the pair. In an interview with CNBC Mr. Nowotny noted that the ECB will provide more liquidity by the time the LTRO loans made in December of 2011 expire next year.

Trade of the day,EUR/CAD

To me the trade of today goes to the currency pair,EUR/CAD.Break of the support level 1.43643 saw a heavy down trend.Today the EUR currency was weighed down by the data releases from the news.I still hope for a reversal for the pair.

FOMC and RBNZ Rate Statement

Based on my trading strategy I stick to fundamental analysis, whenever certain news are expected to be released I avoid trading based on technical analysis,as not to be caught in between the two types of analysis in trading forex (There are three types of market analysis,Fundamental,Technical and Sentimental analysis).
Two strong news will be released today that might cause a tsunami in the forex world,so I advice traders to pay close attention to the following news release:
(1) Federal Open Market Committee (FOMC)
(2) Reserve Bank of New Zealand     (RBNZ)

Support and Resistance

Two years ago on this blog I posted a topic on trading forex using support and resistance indicator, but didn't explain it at length.

Every day I trade forex , am always on the lookout for support and resistance levels. If you call yourself a forex trader, and you are unable to spot the levels, than I advice you stop trading forex, because it is the most basic concept of trading.

A Support level is where buying pressure overwhelms selling pressure enough to interrupt or reverse a downtrend. Conversely, a Resistance level is where pressure is strong enough to overcome buying pressure such that an uptrend can be stopped temporarily or reversed. A strong resistance level is more likely to block further advance even if prices slightly pierce through resistance, and such a situation presents traders with an excellent shorting opportunity.

Early morning trade for today

I traded the pair AUDUSD,AT 22:00 GMT+1.After a break of resistance that lead to an up trend. Below is the chart.(Click on the chart to see the bigger picture)

There is a custom indicator I will like to share with my readers (forex traders),which I will be giving for free when you register an account with ironfx.com through this link:https://www.ironfx.com/en/register?utm_source=613050&utm_medium=ib_link&utm_campaign=IB.

It's a support and resistance indicator that helps me spot support and resistance levels in the market and I will be explaining how to use this indicator to help traders and intending traders spot breakout in the market and also trends (like the saying,the trend is your friend).
The chart below explains how it works.The red line indicate Resistance and the blue line indicate Support.(Click on the chart to see the bigger picture)

Kathy Lien

Having graduated New York University’s Stern School of Business at the age of 18, Ms. Kathy Lien has more than 13 years of experience in the financial markets with a specific focus on currencies. Her career started at JPMorgan Chase where she worked on the interbank FX trading desk making markets in foreign exchange and later in the cross markets proprietary trading group where she traded FX spot, options, interest rate derivatives, bonds, equities, and futures. In 2003, Kathy joined FXCM and started DailyFX.com, a leading online foreign exchange research portal. As Chief Strategist, she managed a team of analysts dedicated to providing research and commentary on the foreign exchange market. In 2008, Kathy joined Global Futures & Forex Ltd as Director of Currency Research where she provided research and analysis to clients and managed a global foreign exchange analysis team.

As an expert on G20 currencies, Kathy is often quoted in the Wall Street Journal, Reuters, Bloomberg, Marketwatch, Associated Press, AAP, UK Telegraph, Sydney Morning Herald and other leading news publications. She also appears regularly on CNBC – US, Asia and Europe and on Sky Business. Kathy is an internationally published author of the best selling book "Day Trading and Swing Trading the Currency Market" as well as "The Little Book of Currency Trading" and "Millionaire Traders: How Everyday People Beat Wall Street at its Own Game" – all published through Wiley. Kathy’s extensive experience in developing trading strategies using cross markets analysis and her edge in predicting economic surprises serve key components of BK Asset Management’s trading and money management techniques.

Valeria Bednarik

     
 PROFILE:  Valeria Bednarik                                   • Current Job: Professional Trader and Expert Adviser for Fxstreet.com

   • Career: 10 years in Forex, 20 years in Accountancy.
   • Age: 44

If there is any woman I admire her trading strategies in the forex world, that woman is going to be Valeria Bendnarik.

Housewife, 60, makes $8,500,000 trading forex

Yes, it’s totally true. Sometime towards the end of the year 2007, the whole world stood in awe as we heard the story of Yukiko Ikebe, a 60-year-old Japanese housewife who made 800 million Yen (then about $8,500,000) from trading forex.

It caused a huge media frenzy as the information was widely publicised on the internet and international television networks.

The news only came out because the appropriate government tax agencies in Japan had fined her heavily for tax evasion. Apparently, she had used the identities of other family members to avoid paying tax on about half of her forex profits (roughly 400,000,000 Yen).

Women who trade forex

  It's the weekend again and am going to be discussing about women who trade online forex in the world, throughout this weekend.
  I don't see women much in Nigeria who trade forex,but those of us men who trade forex, hear about women in other part of the world who are professionals or should I say expert forex traders and they trade forex for a living.Most of the women who make a living from this risky business are either full time housewife,hedge fund executives,bank executive,students,etc.For example in Japan,many Japanese women found that they could bolster tight budgets by performing online forex trades in between chores and shopping for groceries.They became such a force that the market gave them a name: Mrs Watanabe (in Japan,Watanabe is a common surname, the equivalent of Garcia,Jones or Wang).And now they have returned, only this time they're younger and more aggressive.Perhaps Ms. Watanabe would be a more accurate title now.

Exotic Pairs

Today I will be discussing about pairs in the forex market known as ''Exotic Pairs''.
Exotic pairs are made up of one major currency paired with the currency of an emerging economy,such as Brazil,Mexico,South Africa,Hungary etc.Depending on your forex broker, you may see the following exotic pairs so it's good to know what they are. Keep in mind that these pairs aren't as heavily traded as the "majors" or "crosses," so the transaction costs associated with trading these pairs are usually bigger.

  Take a look at the following list of exotic currency pairs because you may
be interested in diversifying your forex portfolio with a few uncorrelated
currency pairs:

Pair	Countries	FX Geek Speak
USD/HKD	United States / Hong Kong
USD/SGD	United States / Singapore
USD/ZAR	United States / South Africa	"dollar rand"
USD/THB	United States / Thailand	"dollar baht"
USD/MXN	United States / Mexico	"dollar peso"
USD/DKK	United States / Denmark	"dollar krone"
USD/SEK	United States / Sweden
USD/NOK	United States / Norway

 Be careful when trading these pairs because of the transaction costs am writing this from my own personal experience.

The truth about trading forex and CFDs

Forex and CFDs are leveraged products and involve a high level of risk. It is possible to lose all your capital and possible to make huge profit in the forex market.
These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. For more information on how not to lose your capital and choosing the right broker call this number _{+2348034235889}

German Ifo Business Climate Index

  Tomorrow traders in the forex world will focus on the “German Ifo Business Climate Index”.

The German Ifo Business Climate Index is a closely followed leading indicator for economic activity in Germany prepared by the Ifo Institute for Economic Research in Munich. Every month 7,000 survey participants from firms in manufacturing, construction, wholesaling and retailing are requested to assess their current business situation as well as their business outlook for the coming six months. The Ifo Business Climate has been released monthly by the Ifo Institute since 1972.

Three data series are compiled from the raw survey date:

.Business climate

.Current business situation

 .Business outlook

Traders like me and my team care about The Ifo Business Climate Index because, it’s a leading indicator of economic health-businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. So I and my team will be trading purely based on fundamental analysis in the early hours of tomorrow and technical analysis later in the day