Month: November 2010

By CountingPips.com

The latest Commitments of Traders (COT) report, released on Friday by the Chicago Mercantile Exchange, showed that futures speculators decreased their bets in favor of the major currencies against the US dollar for a third straight week. Non-commercial futures positions, those taken by hedge funds and large speculators, were overall net short the US dollar by $23.1 billion against the other major currencies as of October 26th, down from a total short position of $25.8 billion on October 19th, according to data published by Reuters.

On an individual currency basis, speculators cut their long positions for the euro, British pound sterling, Japanese yen, Australian dollar, Canadian dollar and Mexican peso while adding to long positions in the Swiss franc and New Zealand dollar compared to the week before.

EuroFx: Currency specs were net long the euro against the U.S. dollar by 40,505 contracts as of October 26th. This is a decrease of over 6,000 contracts following net long positions of 46,748 contracts on October 19th.

The COT report is published every Friday by the Chicago Mercantile Exchange (CME) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. Open interest is the number of open contracts that have not been closed by a transaction or by delivery.

GBP: The British pound sterling positions fell slightly to a net of 5,089 contracts after being long on October 19th by 5,796 positions. The latest data marks the third straight week the long positions have edged lower.

JPY: The Japanese yen net long contracts decreased slightly for a third straight week to 43,129 long contracts as of October 26th from 45,856  net long contracts reported on October 19th.

CAD: The Canadian dollar positions dropped lower for a second straight week to a net total of 19,875 contracts after totaling 30,740 net longs on October 19th.

CHF: Swiss franc long positions edged higher to 12,519 long contracts as of October 26th after totaling a net of 11,235 long contracts on October 19th. This breaks three straight weeks of decreases following a rise to their highest level in almost a year October 5th.

AUD: The Australian dollar positions decreased lower for the fourth straight week after reaching their highest level since April on September 28th. AUD futures contracts declined to a net amount of 55,115 long contracts as of October 26th from 59,181 long contracts on October 19th.

NZD: New Zealand dollar futures positions edged slightly higher to a total of 15,871 long contracts after a total of 15,331 long contracts the week before.

MXN: Mexican peso long contracts edged lower as of October 26th to 80,143 net long positions from 82,125 longs the week prior. The latest data marks the third straight week of declines for the Mexican peso speculative positions.

COT Data Summary as of October 26th, 2010
Large Speculators Net Positions vs. the US Dollar

Euro: +40,505 contracts from +46,748 contracts on October 5th
British pound sterling: +5,089 contracts from +5,796 contracts
Australian dollar: +55,115 contracts from +59,181  contracts
Canadian dollar: +19,875 contracts from +30,740 contracts
Japanese yen: +43,129 contracts from +45,856 contracts
Mexican peso: +80,143 contracts from +82,125 contracts
New Zealand dollar: +15,871 contracts from +15,331 contracts
Swiss franc: +12,519 contracts from +11,235 contracts

Go to the Commitment of Traders CME raw futures data

Further COT Resources from around the web:

• Forecast The FX Market With The COT Report

• The Only Indicator You Will Ever Need

By Yan Petters – For the past couple of months gold proved to be one of the most exciting trading instruments in the market. The commodity, which is considered to be quite volatile as is, has turned into a leading investment, especially due to the lack of certainty in the market, and the unstable condition of the leading economies. Gold has recently advanced to $1,365 an ounce, gaining over $40 per ounce in merely 3 days. However, several technical indicators suggest now that a bearish correction might be impending.

• The chart below is the Gold 4-hour chart by ForexYard.
• The chart shows that after a 3-days rally, gold has been range-trading around $1,360 an ounce.
• The bullish rally continued for as long as gold remained above the Bollinger Bands‘ higher boarder. Yet now, gold has dropped below the higher band, indicating that the bullish move has reached its peak.
• A bearish cross of the Slow Stochastic also suggests that gold might see a bearish correction soon.
• The RSI is pointing down at the moment. If the RSI will drop below the 70-line, it might verify that a bearish move is inevitable.
• Gold’s next support levels are located at: $1,356, $1,347, $1,341 and $1,335.
• Resistant levels are: $1,365, $1,370, $1,381 and $1,386.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

The last data to be published ahead of the FOMC decision is likely to cause less of a market reaction than usual. But nonetheless: a bad ISM result today (due to the end of the summer time due at 15.00h CET / 14.00h UK time) might put further pressure on the greenback. In the end all of this is a matter of interpretation. An index level around 53 (as our economists expect) is of course disappointing compared to recent data. But the latter was distorted by the immediate end of the recession and particularities of the inventory cycle. While the ISM index remains between 50 and 55 it does not send out any economic warning signals. At least a collapse, which could be deducted from a comparison of the ISM components, would be off the agenda.

EUR

We have changed ourr forecast for the timing of the first ECB hike. We see it coming no earlier than Q3 2011, one calendar quarter later than forecast previously. The rational is that Eurozone growth may be adversely affected by the euro’s appreciation, and the ECB will hardly want to start hiking before the Fed. Our US economists currently expect the Fed to start hiking the Fed Funds target in Q3 2011.

The public finances of peripheral Eurozone nations continue to draw unwanted attention, and sovereign bond spreads over bunds remain elevated. Ireland’s Prime Minister Cowen said the government is taking all necessary steps to address economic problems. The Irish 2011 budget, which is still being framed, is scheduled to be put to a parliamentary vote on Dec. 7. In Portugal, the minority Socialist government and opposition Social Democrats reached an agreement on the 2011 budget on Saturday. A first vote in parliament is scheduled for Wednesday.

SNB Chairman Hildebrand said that the global economy is not in the midst of a “currency war”.

JPY

USDJPY suddenly spiked 80 pips before falling again. Reuters reported that Director General Nakao of the MoF’s International Bureau declined to comment on the price action.

Economics Minister Kaieda said that the government would “take steps against steep rises of the yen”, but warned that it is also important for the private sector “to transform its structure” to adapt to a stronger yen. He said that markets should decide FX rates, but that “if an inflow of speculative money” were to cause “a drastic change, like a 10-yen move in a month, we need to intervene in the market”.

As part of its regular monthly disclosures, the MoF confirmed that no FX intervention took place between Sept. 29 and Oct. 27 inclusive. This strongly suggests that Japan’s latest intervention campaign has so far been confined to a single day on Sept. 15.

TECHNICAL OUTLOOK

EURUSD BULLISH Break of 1.4159 would trigger another bullish run towards 1.4373. Support holds at 1.3698

USDJPY BEARISH Outlook is bearish; next big support below 79.75 lies at 77.91. Resistance at 81.99

GBPUSD BULLISH Focus is on 1.6107; move above the level would expose 1.6276 and 1.6458. Support comes in at 1.5878 ahead of 1.5606

USDCHF BEARISH Bounce-off from 0.9463 found resistance at 0.9929. Near-term support at 0.9703.

AUDUSD BULLISH Pullback from 1.0004 holds above 0.9542 reaction low. Move below the level would expose 0.9387

USDCAD BEARISH As long as 1.0380 continues to cap the upside, expect decline towards 1.0154 ahead of 0.9981

EURCHF BULLISH Momentum is positive; expect acceleration of gains towards 1.3924. Near-term support at 1.3456 ahead of 1.3265

EURGBP BULLISH While support at 0.8636 holds, view pullback as correction. Resistance at 0.8772

EURJPY BULLISH Break through 111.56 exposes 107.73 with scope for 105.44 next. Upside capped at 113.78 ahead of 115.68

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Source: ForexYard

The US dollar experienced a rapid spike in this morning’s trading hours following the opening of Asian equity markets. The spike initially drew concern that an intervention by the Bank of Japan (BOJ), selling their currency against the dollar, had brought about the sudden change in value, but the rapid retracement of the USD’s gains made many analysts reconsider this position. Today’s news events will help set the market back into order by injecting much-needed liquidity to this morning’s thin conditions.

Economic News

USD – Cause of USD Spike Uncertain; Dollar Still Bearish as Week Begins

The US dollar experienced a rapid spike in this morning’s trading hours following the opening of Asian equity markets. The spike initially drew concern that an intervention by the Bank of Japan (BOJ), selling their currency against the dollar, had brought about the sudden change in value, but the rapid retracement of the USD’s gains made many analysts reconsider this position.

Alternate approaches to the spike appear to either be the actions of a single hedge fund, or a trading glitch occurring during the thin market conditions of early morning trading. The issue will likely be cleared as the day wears on, but for the moment it appears unclear as to the cause of the jump.

At exactly midnight, GMT-time, the greenback rose as high as 81.41 against the Japanese yen; 1.3895 against the euro; and 1.5989 versus the British pound. Similar gains were seen elsewhere, but these three represent the largest and most significant spikes experienced this morning. What was more significant was the almost instant retracement of these gains over the hour which followed, which, as mentioned, has fueled speculation that it wasn’t the BOJ acting behind the movement.

Today’s news events will help set the market back into order by injecting much-needed liquidity to this morning’s thin conditions. Today’s PMI figures from Britain and the United States will kick-off what is always the heaviest news week of the month. This week’s interest rate decisions and employment data, particularly Friday’s Non-Farm Payroll figures, are of the utmost importance.

EUR – EUR/GBP Breaks Uptrend; Finds Strong Support at 0.8700

The euro continues to trade higher against most of its currency counterparts. Despite a mild setback against the USD this morning, the 16-nation single currency appears to have regained all that was lost versus the greenback immediately after the sudden dip in price.

The EUR/USD pair appears poised to breach the 1.4000 mark again and this week’s news may provide enough bullishness to sustain a price above the mark. The EUR/CHF has risen sharply over the past few days as well, and seems to be hours away from breaking above 1.3800. The British pound has regained predominance over the EUR and remains one of the few currencies to have recently broken the euro’s rise. The pair trades at 0.8711, down from last week’s high of 0.8940.

The euro zone will be oddly absent from today’s economic calendar. Both Britain and the United States will be releasing highly impactful PMI data. French banks will be closed today due to the celebration of All Saints Day, which could mean somewhat thinner conditions than usual during today’s mid-day trading hours.

JPY – Was the BOJ Responsible for this Morning’s USD Spike?

The sudden spike in the value of the US dollar during Asian trading hours this morning have raised questions about possible intervention moves by the Bank of Japan (BOJ). However, the pace at which the move was rescinded has many analysts positing that it may not have been the BOJ, but rather a lone hedge fund, or even a glitch not dissimilar from that witnessed a few months prior.

Of course the question of currency intervention ahead of this week’s meeting of the US Federal Reserve Board has many concerned that the US and Japan may continue in their currency devaluation war despite commitments not to do so at the latest round of G20 meetings. The Fed’s QE move may already be priced in, but countermoves by the BOJ remain elusive and unpredictable. Traders will need to keep a close eye on comments emanating from Japan this week to get a more accurate read on where these two currencies are heading.

Crude Oil – Oil Prices Appear to be Consolidating Near $81.50

Despite the rumblings taking place throughout the forex market this morning, the price of Crude Oil appears little touched. Crude Oil has been experiencing a price consolidation trend towards the level of $81.50 a barrel. The trend appears to have become clearer over the last few trading days as the commodity has continued to trade in an ever narrowing range between $80 and $84 a barrel.

Oil prices respond rapidly to valuations in the US dollar, but this morning’s spike carried little to no impact on the value of oil. This wasn’t surprising, however, since the move was not large enough, nor sustained long enough to substantially affect commodity prices. This week’s data, on the other hand, has the potential to shift commodity prices markedly, particularly Friday’s Non-Farm Payroll figures, which always carry a large impact on the value of the buck.

Technical News

EUR/USD

There appears to be a fresh bearish cross on the weekly chart’s Stochastic (slow), suggesting a reversal may be in the works. A series of doji candlesticks on the weekly chart appear to confirm this potential change of direction. Going short with tight stops may turn out to be preferable this week.

GBP/USD

Many indicators on this pair appear to be floating in neutral territory. However, there does appear to be a recent bearish cross on the weekly Stochastic (slow), suggesting downward pressure is building. The daily Stochastic (slow) also shows the price entering the over-bought region, building towards an impending bearish cross. This pair may be hitting a significant resistance line and could end up being worth shorting this week.

USD/JPY

The weekly RSI has this pair’s price floating within the over-sold region and turning bullish, which suggests upward pressure is mounting. The recent bullish cross on the weekly Stochastic (slow) supports this notion. Going long as the pair hits the psychological barrier of 80.00 may be a wise strategy this week.

USD/CHF

This pair appears to have conflicting indications. The daily RSI has the price deep in the over-bought region while the weekly RSI shows the price just exiting the over-sold region. These competing bits of data could mean the pair is consolidating near the 0.9850 mark in anticipation of a deeper change in value. It appears the consolidation price could also represent a significant pivot point for the pair to either break out of its long-term downtrend and turn bullish, or reverse back into its bearish pattern with a target near 0.9600.

The Wild Card

Gold

Gold’s recent movements appear to have recently pushed the price into the over-bought region on the weekly RSI, suggesting downward pressure. Recent bearish crosses on the weekly Stochastic (slow) support the notion of a downward correction. The price of this commodity may very well correct downward if the USD can find support this week and forex traders have a great opportunity to catch this wave by going short at this great entry price.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Cedric Welsch

Every local and global economy relies on private and commercial investment within the forex currency trading system for sustainability and growth. The arena of private investing has actually grown to new heights, and offer countless of opportunities for profitable and successful investing across wide the global scene. One of the more popular and common forms of private and commercial investing is actually performed online today. As this segment of investing continues to grow, there is a vital need for an understanding of this system in order to remain successful and competitive in any investment scenario.

The forex currency trading system is actually the very largest trading system on the planet right now. Quite expansive, this market trades well over a trillion dollars each day, with countless investors that contribute to this overall dollar amount. As such, one should truly gain a thorough understanding of this system to gain as much of this share of investment capital as possible.

Any investment strategy, including using the forex system, requires a goal set in mind. This goal should include what type of investor one wants to become as well as how quickly they wish to master this process. When answering these questions, one is able to devise a realistic and aggressive investment goal set.

Before using the forex currency trading system, one must first understand how it works. There are actually quite a few levels of courses that range from beginner to more advanced levels of training that offer a wealth of information for any potential investor. Upon completing these courses, one is able to much more accurately and wisely navigate through the system and make better decisions.

Investors should also take advantage of the simulated accounts that forex offers prior to making real investment decisions. There is no investment capital needed for these accounts and they offer real access to the trading market. This gains valuable exposure and practice in trading & exchanging prior to making any form of financial commitment.

Being part of the forex system also allows access to a wide range of charts and helpful graphs, giving full advantage to using a very helpful investing tool. One should truly understand the information provided in these tools and be able to act upon them. They exist in order to help guide any investor down the road to success.

Keeping abreast with world news and events provides a key ingredient to any sound investment decision. Externalities often play a crucial role in how any market will behave. They also help shape the short and long term decisions while using the forex currency trading system.

About the Author

Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News Trading

Also, you need to know how to read and analyze the trading market well. Learn Currency News Fx

By Cedric Welsch

As trading on the Forex system becomes much more popular and involved, the need for an online Forex trading course has never been more important for new investors. Quite often, new investors are prone to lose money and often make careless mistakes with their money as they understand very little of the basic system. Without falling into the trap of using system generated trading devices and letting someone else do the work for you, one must use these courses to gain a thorough understanding of how to successfully navigate through the system. When selecting a course to take, one should understand a few facts prior to making their selection.

Any Forex course that will provide the most success will provide very specific and tailored strategies. Basically, beyond just learning about the Forex system, there should also be guidance as to how to make sound and important investment decisions. Upon learning both facets of this course, one can quickly become a successful investor.

One of the best forms of training anyone could receive is from an actual live and active broker. Quite often, they are able to provide insider tips and training to help make wise and guided decisions. Also, this educational tool is often much more personal and allows someone to learn in a more private and paced setting.

The online Forex trading course one selects should also be able to actually either participate in or see live trading events. This is often the very best method of learning and truly covers most of the gambit of how people learn. Being able to participate and watch live investment decision is a key element in gaining exposure to the entire system.

Also, an online course should include live and real time support. During the learning and training process, there are bound to be a plethora of questions which should be answered immediately. Any amount of clarification of any given topic should be offered at all times during the training process.

The course that is taken should begin with a very basic virtual tour of the Forex system as well. A step by step guidance of how to log in and actually make purchases is actually something that makes for an incredible learning curve for any potential investor. By seeing a guided and live tour of the entire system, one can make mental and live notes of what is pertinent to their investing decisions.

The online Forex training course process is actually quite enjoyable. If utilized properly, this training could open up several doors of opportunity. Use this process wisely for an incredible trading future.

About the Author

Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News Trading

Also, you need to know how to read and analyze the trading market well. Learn Currency News Fx

By Danielle Franklin

We all know that money management is crucial in live trading. In case of a fatal mistake, money management can literally save your account from being wiped out clean. What is the right way to control your assets? How should you trade in order to minimize the possible losses? Are mini accounts helping beginners, or in fact are actually discouraging and more risky?

In order to survive forex market and create profits, let’s consider the following:

1. Understand leverage and risk levels

Although some professional traders might suggest that risking no more than 10% is about right, I personally wouldn’t suggest going anywhere higher than 2% of your trading account balance on each trade.

Why to keep such a low profile? Risking only 2% of your funds gives you an ability to endure the market volatility. In case the trade goes the wrong way, you will be able to get out of the trade yourself and try again, instead of getting a margin call when your funds hit zero.

Losing is part of the game – there are good days and bad days. Be prepared that you won’t be winning profits every single day. Your goal is to protect your money and make your winnings larger than losses within an extensive period of time. If you can do so – you can call yourself a professional forex trader!

2. Write down your gains and losses

Keep a journal of your gains and losses (you can type it in excel document or write down by hand – whatever works better for you). It is important to analyze the results – in case you are losing more than winning, it is time to rethink your trading strategy.

3. Practice with demo account

Some traders say that demo accounts are waste of time, because you are not really trading the real money, so you are not exposed to fear, greed and other emotional obstacles that need to be locked away!

I personally think that it is necessary to practice with demo account and go over your strategy before jumping into the deep water of real money forex trading. Today almost all forex brokers offer free demo accounts with all the features of the live trading account. Even if you don’t experience the emotional traumas only possible with live trading, practice has never been useless!

4. Have sufficient capital to trade

The worst thing you can do to yourself is attempting to trade without enough money in your account. A trader with limited capital is not only a stressed out trader, but also a trader that will hit margin call and will be taken out of the trade so frequently, that he or she won’t be able to understand trading at all!

So what about mini accounts with low minimum deposit requirements? I mean, one of the reasons why forex is so attractive to beginners is the small accounts. However, these small accounts are exactly the types of the accounts that get wiped out almost instantly, leaving the beginner with the sense of low self esteem and probably a complete disappointment.

5. Find your comfort zone

Before entering a trade, decide how much money are you ready to lose and whether it affects your daily live in any way. Never trade the amount you cannot lose – forex is not the wheel of fortune. You are not going to become a millionaire by magically entering a trade, guessing the direction and hoping for the best.

6. Take parts of profits out

Once you start making profits, it doesn’t mean you should be risking all that money in one go. Don’t put all your eggs in one basket! If you are doing great and increase the position size, the amount of loss increases as well. Meaning that, at some point you might be risking a trip to Hawaii, a house or even a retirement at the age of 30! Don’t put so much pressure on yourself, because that can only lead to wrong decisions based on emotions.

The best way to deal with this kind of situation is to take some of that profit out on a weekly, monthly or even yearly basis. The trick is to do it systematically, instead of creating a pile of enormous amount of money in one trading account.

About the Author

Forex Trading Brokers – Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog.

Online Forex Brokers – Top forex brokers reviews, latest bonuses and promotions, free forex tutorial and more.

Forex Links

By Zachary Scheidt, Editor, Taipan’s New Growth Investor and Velocity Trader  TaipanPublishingGroup.com

If you bring up the subject of gold investments to a “respectable” Ivy League portfolio manager, he will likely scoff at the idea and quickly dismiss the idea of gold as a true investment asset class.

He’ll tell you that gold is a residual shadow of man’s barbaric side — a fascination with a shiny metal — a completely useless trinket…

I say, baloney! Call it barbaric if you want to… but gold still trumped almost any “traditional investment portfolio” over the last two-year, five-year and 10-year periods.

But here’s another precious metal I’m hot on right now that could trump gold…

Look at Silver’s Run!

I’m talking about silver… the only metal that is both precious and “industrial.” Since the 2008 low, silver has advanced from a price of $8.25 to well over $24 and looks very likely to continue its astounding gains.

The chart below shows a graphical representation of the performance of silver compared directly to the performance of gold…

View Larger Chart

One of the primary reasons for silver’s strong performance is the need for the precious metal in many different industries including:

• Electronics (silver is an excellent conductor of electricity)
• Solar power (silver’s reflective properties are unmatched)
• Photography (believe it or not, a significant amount of silver is still used in traditional film)
• Medical (silver has significant antibiotic properties)

With half of the world’s demand for silver driven by actual usage (in an economically challenged time period no less), it’s no wonder that the price of silver has outperformed gold to an astonishing degree.

And when the precious metal side of the equation kicks in, the spike in silver prices can be even MORE pronounced.

Silver Miners Offer Exceptional Opportunity

There are a number of different ways to profit from the long-term bull market in silver. Depending on how aggressive you want to be, you might consider futures contracts, physical coins, options, exchange-traded funds (ETFs) or individual stocks.

The velocity of movement in the price of silver can really work to a nimble trader’s advantage, an we are intensely focused on finding the best trading opportunities with the least amount of risk.

I like playing silver miners as the best way to play silver’s rise. (By the way, investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let editors Sara Nunnally and Jared Levy simplify the market for you with their easy-to-understand articles.)

Companies engaged in the process of mining silver are particularly attractive because of their twofold gains…

• These producers are seeing profits increase as the costs of producing each ounce of silver remain relatively stable, but the sales price for those ounces is skyrocketing.
• Most silver producers are sitting on large reserves of unmined silver resources, which become more valuable with every tick higher in the price of silver.

Silver miners are attracting attention in the investment world and are already experiencing sharp price increases.

But with the U.S. dollar still in jeopardy and investors seeking safe investments to protect the purchasing power of their capital, silver is likely to continue to advance — and I intend to capture significant profits along the way. There’s still plenty of room to run.

P.S. If you like the idea of playing silver but are looking for super-charged returns, I’ve just released a new strategy you’ll want to hear about. At this moment, a supply/demand gap of epic proportions is poised to send silver prices soaring. And while most investors scramble for silver coins and bullion, some smart folks have discovered a new silver investment that could return a 130-fold gain by Spring 2011. Follow this link to get in on the ground floor…

Don’t forget to follow us on Facebook and Twitter for the latest in financial market news, investment commentary and exclusive special promotions.

About the Author

Zach Scheidt is the Editor of Taipan’s New Growth Investor and Velocity Trader, two of Taipan Publishing Group’s financial research investment newsletters. Zach’s experience as a hedge fund manager has given him the skills to manage sizeable investments of a number of private investment partners and develop advanced investment strategies to make the highest returns possible.

For Taipan’s New Growth Investor, Zach researches and profiles innovative new companies capable of creating long-term wealth regardless of the state of the stock market. He focuses on high-yield dividend stocks and provides simple long-term investment strategies. For Velocity Trader, Zach carefully scans thousands of stocks, looking for companies that have the potential to make huge stock price moves. He then uses option trading strategies to identify short-term investment opportunities for significant gains.

Provided by: Real-Forex
USD/CAD

Daily graph: http://www.real-forex.com/charts-daily/011110/CAD_DAILY_011110.JPG

The last 9 sessions shows a clear navigation of the pair. It is very simple to detect the difficulties of the pair the cross the support 1.0180.

In yesterday’s session, a vain breach occurred, indicating a future increase until the upper level of the navigation, creating the opportunity to go “Long” . An increasing configuration on one-hour graph should confirm that new trend.

Potential trade

One-Hour graph: http://www.real-forex.com/charts-daily/011110/CAD_1H_011110.JPG

The required configuration should appear once the 1H resistance  of 1.0205 will be crossed upward. If it does, it could be better to catch the opportunity in the following way:

• “Limit” order on “Long” position 10 pips above the resistance (1H r.) mentioned earlier, meaning:  1.0215.
• “Stop Loss” on the last low occurred, which is: 1.0168.
• “Take Profit” on the following resistance which is 1.0247.

AUD/USD

Daily graph: http://www.real-forex.com/charts-daily/011110/AUD_DAILY_011110.JPG

The actual navigation between 0.9973 (resistance) and 0.9661 (support) started about 3 weeks ago is not expected to stop. The pair is currently on his way to the upper level of the channel of navigation.

The way it will behave once the resistance reached will determine the best attitude as well as the adapted transaction. There are two possible outcomes:

1. A vain breach on the resistance occurs. This is an indicator of reversing trend, meaning a future downtrend until the lower level of the navigation. An adapted transaction would be to go “Short” with the trend.
2. The resistance is crossed and broken upward. In this case the current uptrend is expected to keep its current movement. We suggest waiting for a technical correction before going “Long”. This technical correction would confirm the new movement.

Keep following.

Have a profitable week!

Real-Forex team

Real-Forex team

By James McKee

A lot of people tend to think of those involved in the financial sector as greedy or heartless people who do not care about anything but profit. This was once even an opinion that I had held until a couple years ago when I took an interest in Forex and sought out the tools and knowledge I needed to be a successful trader. I was afraid of being treated badly or even ridiculed for not having a college education in finance and was scared to ask others for help. What I found waiting for me in the Forex trading community was therefore a complete surprise, and a welcomed one.

Every trader I have come into contact with on either forums or other areas of conversation has always gone out of their way to share techniques and strategies with me to increase profits. This is not the way I had perceived Wall Street and the like and was genuinely surprised to discover large numbers of people openly sharing their experience with me. The Forex Currency Exchange can be an ominous and intimidating place without the proper knowledge and the potential to lose a lot of money is always there, having people in the same boat as you are giving sound advice is in a word “invaluable”.

You will not find this type of cooperation in other professional fields and the quality of the education is as good as you will find in any university with regard to its applicability in the market. Truly the opportunities both in terms of financial gain and in terms of camaraderie are tremendous in the Forex market. When approaching any financial investment the amount of apprehension involved can be immense, having other people there to support you is very helpful when deciding what course of action to take.

When approached responsibly Forex can be a liberating aspect of your portfolio and perhaps even define it. Achieving this level of proficiency is not easy however and you must be dedicated to your own success because no one will carry you. By helping yourself and then in turn sharing information you know with others who do not you are contributing to one of the most friendly and profitable communities available today. So do not be shy, if you have a question ask and someone out there will be more than happy to help you!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.