AUD/USD

It‘s not the first time that we are talking about this great pair.  The thing about this pair that makes it so exciting is that every few weeks, days or hours this pair is breaking the previous record and moving in a uptrend. Take a look over the daily chart and you will clearly see the trend this currency is moving in. Over the last year we have seen that this pair has moved in the 2600 pips range and in a clear uptrend. Now the big question I hear everyone asking is when and will this pair will really break the record and prove this uptrend to be real and reach the highest point of 0.9400?

In order to get the feeling of the movement you will need to take a look at a few different parameters, one is the fundamental news that will come from the US and Australia that will directly affect the move and trend of this currency.  Next thing to do is keep looking over the chart and to technically analyze the trend of this pair over non fundamental days where only sentiment will effects its movement.  The combination of both will help you make the right decision when trading. Over the last few weeks the market has moved nicely for this pair, let’s go ahead and translate today’s movements to money in our pockets!

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

Coming from United Kingdom we have the “Services Purchasing Managers’ Index”. The previous announcement was 54.1 and the forecast for today is 54.6. (08:30 GMT).

Two more announcements are also coming in. One from the US “ISM Non-Manufacturing PMI” which will be released at 14:00 GMT, the previous announcement was 48.4 and the forecast for today is 50.  Also coming from New Zealand we have the “Business Confidence”. The previous announcement was -25. (21:00 GMT), no forecast on this one available.

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

Coming from US we have the “Jobless claim”. The previous announcement was 545.0k and the forecast for today is 550.0k. (12:30  GMT).

one more announcement coming in from US “Home sales” which will be released at  14:00 GMT. The previous announcement was 5.24m and the forecast for today is 5.35m.

There are 2 types of analysis that are commonly used in the Forex market:

1. Fundamental analysis

2. Technical analysis

There is a constant debate as to which of these is more accurate. I’ve found that  the best analysis’s  are the ones that incorporate a little bit of both

One of the most important tools for analyzing the Forex market are the Support and Resistant lines.

Here’s how the support and resistance points are recognized:

When the market moves up and then pulls back, the highest point it  reaches before it pulling back is a  considered the resistance point.

Once the currency changes directions, the lowest point it reaches becomes the support line.

Once the Support and Resistance lines are established we can use them to position ourselves on the charts following the market trends while safeguarding our positions as well.

My next review will illustrate how to use this tool to perform Technical Analysis on the charts.

USD/JPY

Over the last few days The pair is having a little difficulties getting under the support  90.30 and staying there. Looks like this pair moving to few new support lines .the market have several bars before that happens, USD/JPY moves without a clear trend on a hour chart, when we are looking over a daily chart we can see a clear downtrend, to make it easy we can find in the last 30 days more sellers of the us dollar and more buyers of the japans yen, over the daily chart it will look as 18 reds bars and 12 blue bars

Keep your eyes open, don’t forget to put the S&R lines

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.