What a market we are experiencing today!!!  It spells money!!!

As we can see from the trading day yesterday the oil continued its movement in the direction of an uptrend reaching the price of $75.38 a barrel. This was a 10 month high for oil after the amazing summer of 2008 when oil reached $140 a barrel.  This direction continues to support the weakening of the USD, while supporting the CAD and AUD, the commodity driven currencies.

When will this trend stop??

Maybe a few traders have an idea when this will end, however when we look at technical analysis we continue to clearly see the trend.  The announcements we mentioned above coming from the US have already been published and both were positive for the USD. Will we see a market correction or will the trend continue? Question left unanswered will be answered by the traders during the end of the London session and into the US session. Make sure to always examine your support and resistance lines before entering your trades.

Let’s take a closer look at a few pairs:

USD/CAD

I’m not going to talk about the oil, but we can talk about this pair and how it is affected by the oil.  We can find that yesterday this pair made more moves supporting the price of oil, leading to a stronger CAD. Here are the Support and resistance lines for this pair today.

GBP/USD

Employment data in the UK today showed that the country lost 20.8K jobs, less than the 24.5K expected, helping the cable gain a bit against the buck. The gain put it above the 1.6000 level temporarily, though it has come off a little since then going back to the range it was trading in during the last few trading days.

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

Coming from US we have the “Core CPI M/M”.  The previous announcement was 0.1% and the forecast for today is 0.1%. Released at (12:30 GMT).

One more announcement coming from the US  “Unemployment Claims” which will be released at  12:30 GMT, the previous announcement was 521K and the forecast for today is 524K.

OK traders!! It is time to get some important and good education in order to become a better and more knowledgeable trader.  However to become a better trader one must know the 3 major trading sessions that control the forex market. Those 3 sessions being Tokyo, London and New York.

We all know, this market is a 24 hour a day market revolving around those 3 sessions.  As a trader it is vital to decide which session I want to trade in and follow the trend that is presented in the specific session one enters.  If you look at the chart I have enclosed you will clearly see the London session to carry more pip movement than any other session. As a trader I can find this information prudent for my success.

One more thing I want to share with you guys is this, its money time!!

Over the last few weeks many of the traders I talk to are opening positions selling the USD.  In this case many of these traders are simply following the trend and making money while doing simply that. Follow the trend and know the session you are entering to join those successful traders.

USD/CAD

Over the last few weeks and days we have continued to watch the CAD strengthen against the USD. This is happening due to 2 real reasons. The first is the overall weakness of the USD. The second is the fact that the CAD is a commodity driven currency and with the price of oil continuing to increase the CAD continues to follow that same trend. Make sure to continue searching for support and resistance lines and make sure you know those before entering the position here.

Have a great day of trading…

Today, I would like to continue to address the unprecedented weakening of the USD and the effect it has on major currencies. One of the most exciting things happening in the market over the last few weeks, days and hours are simply the record breaking increase of the Gold and silver. More so we are seeing the commodity related currencies also increase in value to a point of which few have gone and recovered from.The CAD and AUD are both approaching all time highs and continue on a strong uptrend against the USD. Is the USD done??

No, allow me to explain, many analysts across the world agree the recession is over however many believe the road to complete recovery is going to slow and painful, especially in the area of job growth. Fundamental analysis continues to show us higher unemployment rates from the US, the weakness of consumer spending continues to decline or remain flat. However with so much of the world wealth tied into the USD, it is hard to imagine a complete crash, for us traders right now the trend is clear!! We are seeing a weak USD and stronger everything else. In this market we say, “The trend is your friend”

Let’s talk on one of the most popular pair in the world

EUR/USD

The EUR has been moving in a clear uptrend. Today it reached and broke the resistance level of 1.4812. The expectation by many analysts in this market and the next resistance line for the EUR is at the 1.5000 line. Today we have seen the gold piggy back ride on the increase of the EUR with the gold reaching the level of $1065 an oz today!! The trend for this pair is clear, the fundamental and technical analysis is there to support our findings. Continue to look for the entry opportunity for this exciting and volatile pair now!!!

Here are the S&R line for Today:

Support: 1.4850-1.4780-1.4740

Resistance: 1.4890-1.4960-1.5010

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 U.K we have the “Manufacturing Production”. The previous announcement was 0.4% and the forecast for today is 0.3%. (8:30 GMT).

One more announcement coming from Canada “Building Permits” which will be release at 12:30 GMT. The previous announcement was 1.0% and the forecast for today is 0.5%.

USD/CAD

Let’s start analyzing this fascinating couple, Earlier this week, the cad dollar continuing strengthening, you can clearly see it over a daily chart ,

After falling around 90 pips on the back of the August US unemployment report from 1.0970, USD/CAD has bounced at 1.0885 to previous levels close to 1.0980. Currently the pair is trading around 1.1050 to 1.0650 over a daily chart, it is important to note that there is a strong resistance point at 1.0825 .

this pair is a wonderful pair for scalping  traders , the pair is in  clear range, we can find some opportunities by continuing  to trade with this pair. Let’s translate yesterday movements to money

Resistances-1.0830 – 1.0895

Supports-1.0730 – 1.0680

XAU/USD

One of the most fascinating things in the forex market is the possibility to trade with commodities . Especially the black oil trade , witch so-called gold.
Over the last few days we are in a track we can find a clear volatility coming from this pair.
last time this pair had reached to the same levels as now ,was on th23 February, you can find it over the hourly chart , as we can see the pair tried several times to cross the resistance line, it’s hard to say what will happen, but it certainly seems that this direction is an uptrend.

Resistances -1030

Supports -990