Fundamentals:  We have a few announcements today which will affect the market.

Coming from Canada we have the “Core Retail Sales”. The previous announcement was 1.0%

And the forecast for today is 0.1%. (12:15  GMT).

A second announcement coming from New Zealand  “GDP q/q” which will be released at 22:45 GMT. The previous announcement was -1.0% and the forecast for today is -0.2%.

EUR/USD

Very interesting trading week for foreign exchange traders
one of the most important pairs to follow is definitely the EUR/USD.

Last few weeks we noted that this pair is moving forward in a clear uptrend, as noted in our weekly and daily charts. Concluding that more people bought the EUR and sold the US dollar, the big Q we all ask will this uptrend continue.

There are 3 possible scenarios:

1. The pair can break its resistance line and continue its uptrend to the next resistance point.

2. The pair can continue to move within its current range.

3. The EUR/USD may change directions and break its support line creating a downtrend for the pair.

For a clearer picture we need to wait for more indicators coming from the US and European session. After the results are in we can get much better understanding to where the market will lead us.

Let’s see how much pips the market move….

Resistances:1.4730 – 1.4765

Supports:1.4670 – 1.4610

Fundamentals:  We have a few announcements today which will affect the market.

Coming from U.K we have the “Inflation Report Hearings”.  Another announcement is coming from Germany and it is about the “German ZEW Economic Sentiment” The previous announcement was 56.1 and the forecast for today is 59.9. (9:00 GMT).

A few more announcement are coming in from US . Those are “Core Retail sales” The previous announcement was -0.6% and the forecast for today is 0.4%. The second is going to be covering the “PPI  mm” The previous announcement was -0.9% and the forecast for today is 0.9%. Finally the  “Retail Sales m/m“ which will be released at 12:30 GMT. The previous announcement was -0.1% and the forecast for today is 1.9%. Also at (14:00 GMT) we have the Fed Chairman Bernanke Speaking.

EUR/USD

Let’s start analyzing this fascinating couple. The earlier preview over this pair indicated an uptrend for the EUR.  It appears we took the profit from yesterday move big time.  The EUR  continues to  strengthen and you can clearly view that over a daily chart.

After a strong uptrend move around 137 pips, the EUR/USD has bounced at 1.4515 to A new  levels close to 1.4652. Currently the pair is trading around 1.4647 to 1.4591. Over a daily chart, it is important to note that there is a strong support for the USD at the 1.4600 line.
From a fundamental point of view Barack Obama called yesterday for Congress to tighten the supervision of Wall Street warned the financial community about reckless behavior that could result to another meltdown. President Obama also cautioned about the risks that could lead to a BS Pal “information, similar to that of 1930s. President Obama also said that the US financial system was crashing a year ago with the bankruptcy of Lehman brothers and today the US economy is a  recovery mode. President Obama also indicated that he expects jobless claims to start declining and see more jobs created in the US over the coming months.

Let’s translate yesterday movements to money!

Resistances-1.4650 – 1.4690

Supports-1.4600 – 1.4515

USD/CHF

It appears the last few days the Swiss franc is moving in a clear downtrend.

Today we saw some negative announcement coming from Switzerland as well. The forecast for the “Core Retail sales”  was 7.8% and it came out only at 2.7%. That is the clear explanation for why the SWISSY is in a downtrend at the moment. The support and the resistances lines are the main tools to keep tracking this pair as the day continues. We will also look forward for the announcements coming from the US later today that could effect this pair more.

Resistances – 1.0360 – 1.0425

Supports – 1.0325 – 1.0290

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.