Fundamentals: We have a few announcements today which will affect the market.
Coming from Canada we have the “Canada Mortgage and Housing Corporation ”. The previous announcement was 134K and the forecast for today is 138K. (12:15 GMT).
one more announcement coming in from New Zealand is the “Reserve Bank of New Zealand, Official Cash Rate ” which will be released at 21:00 GMT. The previous announcement was 2.50% and the forecast for today is 2.50%. At the same time we will have a Reserve Bank of New Zealand Conference which will issue a statement.
I want to start the day by explaining a little about some of the trading strategies in the Forex Market. In order to recognize some of the strategy’s available you need to determine what kind of a trader you are.
Frequently asked questions are, when is the right time to close or to open the position? Or how long should I keep the position open for? This questions is part of the trader’s strategy, let‘s look over the one that will fit your trading strategies and how this varies from one person to the other.
Long-term- usually prefer a daily or a weekly charts, the trader need lots of capital in order to keep the positions alive for a long period of time. The trader will usually close the position when he is pleased From total profit. You can make a lot of profit by joining the trend
Short-term- usually prefer an hourly chart and analyzes the market by combining technical and fundamental information and can make a good profit from the changes in the range of the currency pair traded.
Intraday – usually prefer a minute’s chart to trade. It is also known as scalping. It is a trading strategy that allows the trader to open and close positions within a few minutes thus taking advantage of minute analysis and reviewing the performance of the currency with little regard to fundamental analysis.
All of the strategies I mentioned above allow you the opportunity to make money is the forex industry. The big question is which one will suits you trading style and goal.
NZD/USD
One of the most closely watched pairs over the last few days has been the Kiwi against the USD.
Last week we noted that this pair came to a point of 1.6991 on 09/01/08 almost exactly on its 1 year anniversary. Wow!! We will have to wait and see if the markets will react to this and go with the uptrend. This week we will look for the Kiwi to hit new levels and this uptrend is likely to continue.
