Trend is Friend

Trading is likely the only way to make a living and/or accumulate a wealth. For a trader wealth is everything. Many traders participate in Market for making money, But due to uncertainties of Forex Market they lost their money. Most of the time market goes nowhere, due to uncertainties. Only 35 % of the time market moves in a particular tend, during the remaining 65% of the time market doesn’t move to any trend, due the uncertainties. Trading is a easiest thing in the world but making money is toughest thing in the world. Trending Market generates opportunities to make money, that’s why all smart and professional Traders like trending market, and they prefer to trade in trending market rather than range bound and volatile market, and they make money also in trending market.

                                Nobody can make money by sitting in front of computer screen. If you are spending a lot of time in front of Computer screen, and you don’t understand when to enter and when to exit from the position, so it’s a wasting of time and it always happens in volatile market or choppy session and range bound market. There will be no opportunities when market goes no where, or where is no trend. Where there is trend, there are lots of opportunities. Make friendship with the Trend.

Rise in Asian Stock’s

Asian stocks climbed US data after GM bankruptcy. Toyota Motor Corp. which overtook GM last year as the world’s biggest automaker, climbed 2.4 percent in Tokyo, while Kia Motors Corp. added 2.5 percent in Seoul.

BHP Billiton Ltd., the world’s largest mining company, gained 2.9 percent as oil and metal prices increased yesterday.

STX Pan Ocean Co. Ltd., South Korea’s biggest bulk carrier, jumped 5.5 percent as shipping rates rallied.

Investors who were holding back are now buying into the stock. The data continues to improve everywhere because of the extraordinary policy stimulus,said Stephen Halmarick.

The MSCI Asia Pacific Index advanced 1.1 percent to 105.13 at 1:34 p.m. in Tokyo. Japan’s Nikkei 225 Stock Average added 1 percent to 9,775.58, while Australia’s S&P/ASX 200 Index gained 1.7 percent.

Now Asian Market are showing good Rise then US data and  it will grow further showing a rise in economy.

Ghastly US dollar


Ghastly US dollar

The statics of US dollar is ghastly now a day. The world’s most actively traded currency plunged 547 pips or 6.5 percent on a traded weighted basis to its lowest level this year.

The Forex market is relatively affected by growth in US economy and returns must be set against its global counterparts to gauge the strength of the dollar.

Job losses are most important drawback of recession as there is slow deduction in payrolls and job losses. Hence, a steady improvement of this caliber could single-handedly convert a bulk of the market to believers that the world’s largest economy is on track to recovery ahead of its major trade partners.

Risk appetite will no doubt has its influence on the greenback; but a dense list of high-level event risk will cast the battered currency in a more objective light on where the US really stands in the global scale between economic depression and recovery.

Forex reserve increase in India

According to RBI, foreign exchange reserve has increased by $6.432 billion during the week. This rise in reserve is due to tumbling of dollar against other currencies.

There is rise in Rupee after Congress UPA won the general elections with a decisive mandate and tracking the huge gains made by the Sensex. The domestic currency had even touched 46.90 against the dollar.

Gold and SDRs were unchanged at $9.231 billion and $1 million respectively. The foreign currency assets increased by $6.411 billion to $250.165 billion.

Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies, such as yen, sterling and euro.

The euro gained from $1.3436 at the beginning of the week to $1.3916 at the end of the week, against the dollar. This has increased country’s reserve position from $21 million to $1.242 billion. This rise in reserve is helpful in increasing benefits in export market. This will be helpful in the growth of Indian economy.

FOREX UPDATE -Georgia to control lari rate
Georgia's fundamental collection will bring to standstill interventions on the Tbilisi prevalence switch over, and the lari rate will be single-minded via legal tender auction, the central bank's chief Giorgio Kadagidze said on Monday. The central bank had been spending its reserves to support the lari. The central bank had been spending its reserves to support the lari."This decision does not mean a change in our policy, it just modifies our currency market," Kadagidze told a news conference. "It won't have any impact on the lari rate," he said.

"Currency auctions are more elastic and a at the height of fashion put into operation foundation on the advertise apparatus to a certain extent than the central bank's involvement in the Tbilisi exchange trades," the central bank said in a statement” The central bank had been disbursement its bank financial credit to maintain the lari.

"This decision does not mean a change in our policy, it just modifies our exchange market," Kadagidze told a news conference. "It won't encompass any contact on the lari rate," he said.Kadagidze said the central bank would sell and buy dollars at the auction, which would be held twice a week.

What is Support and Resistance level in forex?
Support and resistance is one of the most extensively used concepts in Forex trading, that involves the movement of the price of a commodity or currency will have a tendency to stop and turn around at certain predetermined price levels. It is right to say that, everyone appear to have their own idea on how one should assess support and resistance.

Support and resistance is the foundation of the majority of technical analysis chart prototype whether you trade Forex, commodity futures, options or stocks. We need support and resistance to recognize if we want a low risk, sensible technique to trade derived from what we observe in the charts. Areas of price overcrowding that create many well known chart configurations are nothing more than levels of Support or Resistance.

Support level- Support level is a price level where the price has a tendency to find support as it is moving downward. This means the price is more possibly to "spring up" off this level rather than breaching it. Once the price has passed this level, by an amount beyond some noise, it is likely to carry on dropping until it finds another support level.

Resistance level- Just opposite of a support level is the resistance level. It is where the price has a tendency to find resistance as it is moving upward. This means the price is more likely to "spring back" off this level rather than breaching it. Once the price has passed this level, by an amount beyond some noise, it is likely that it will carry on rising until it finds another resistance level.

Forex updates - Currency overview
According to the latest Forex updates, on Wednesday the Euro (EUR/USD) attained the peak value since January, after the pair was able to break over a significant swing area. The Euro started moving up during the European session, gaining as much as 200 pips during the intra-day session. But the late U.S. session found the pair losing some of those gains.

On Wednesday the Pound (GBP/USD) became strong across the board, being the day’s top performer. Nearly the whole upward movement came during the U.S. session, having the pound rush 270 pips. According to the currency managers’ sentiment report, the Pound is noticed as undervalued.

On Wednesday, formed a large doji-star, the Aussie (AUD/USD) finished the last trading day, suggesting the market’s wavering. During the intra-day session, the Aussie lost position during the late U.S. session, after it formed a double-top structure at the LFB R1 (0.7800), throughout the Asian session, the pair traded side-ways.

Japan’s economy shrank
By a record last quarter, as exports fell badly and consumers and businesses cut off their expenditure, Japan’s economy shrank. A downfall that probably has marked the lowest point in the country’s worst Economic downfall since World War II.

The Cabinet Office said today in Tokyo that GDP  fell an annualized 15.2 % in the 3months ended March 31, following a revised 4th quarter fall of 14.4%,. The economy contracted the most since records began in 1955 that is 3.5 % in the year ended March 31.

Exports fell at a record 26% last quarter, compelling companies from Toyota Motor Corp. to Hitachi Ltd. to cut- short their production, workers and wages. Stocks have gained 32% since reaching 26-year low in March on speculation global interest-rate decreases and expenditure by governments will stop the glide in the world’s 2nd largest economy.

Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo said that there was a down fall across the board and also said that there’s light at the end of the tunnel and the economy will again start growing this quarter as companies restock inventories and motivational plans at home and abroad take effect.

Before the report was published the Yen traded at 95.59 per USD at 12:56 p.m. in Tokyo from 96.16. The Nikkei 225 Stock Average rose 0.3 %. Economists’ analysis forecasted the economy would contract 16.1%.
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The Canadian Dollar weakened and Swissy reached at a high
On Friday the Aussie (AUD/USD) dropped 100 pips because of the weaker equity markets and the sideways movement of gold prices. The Dollar became stronger as equity markets dropped and U.S. economic reports came in positive.

The Canadian Dollar (USD/CAD) weakened against USD on Friday because of the downfall in equity markets, and stronger Dollar and worse than expected Canadian manufacturing sales. Reversing February’s gains, Canadian manufacturing sales decreased 2.7% in March to $41.4 billion.

On Friday the Swissy (USD/CHF) reached at a high, gaining almost 200 pips, despite Swiss retail sales posting a 1.2% read, better than the slide of 2.2% that was anticipated.

The Yen (USD/JPY) jumped down approximately 60 pips on the day closing just above the 95.00 level and being supported by the 100 day SMA. Lower equity markets escorted the traders to become risk reluctant, once again and buy the Japanese currency. For this week, the pair dropped 350 pips.

What is Simple Moving Average?
Simple Moving Average also called SMA is the average price over a definite period of time, taking care that equal weighing is given to each daily price. The time span could be 5 minutes, 10 minutes, 1 day, 1 month etc., where each of the selected periods holds the same weight for the average.

Simple Moving Average is calculated with the following method; the currency’s closing prices taken for several periods of time and are totaled and divided by the amount of these periods the average price of the different period is represented by SMA.

At the long periods of time due to the same weight given for the every day price by SMA the unsteadiness of the Forex market is much more smoothed. Only the long-term trends may be seen out of the long-term averages as far as any irrelevant fluctuations get smoothed. For a decision put short-term trends the short-term averages are taken, however they still give the long term outflow of cash.

The prices are frequently situated close to the moving average but still away from it. The moving average varies following the trend changes giving the additional data of the trend power taking the incline steepness as its base.


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