Forex Trading News – Currencies Direct
Yesterday in Forex Trading, the USD has lost key resistance levels against the EUR, CHF and JPY hitting a 14 year low on the YEN. The Japanese authorities are not happy with current situation with the strength of the YEN hurting exports. Recently we have seen attempts from Japan to verbally intervene in the markets and threaten direct intervention- this has not stopped the rot. Similarly the Swiss National Bank has recently intervened on USD/CHF and EUR/CHF and rumours are circulating that the SNB are buying USD/CHF today. In addition the market is also talking of a potential bout of co-ordinated central bank intervention by the SNB, Bank of Japan, US Federal reserve and the European central Bank.
Whatever is happening we are certainly seeing movement centered on the USD. EUR/USD yesterday broke through 1.5050 a key level and this could open the way to 1.55; USD/CHF is hitting parity and USD/JPY at 14 year lows are worrying signs of a USD in disarray. Also against the AUD, NZD, ZAR and CAD the USD has seen pronounced weakness lately as the market moves out of USD into higher yielding assets. The continued global recovery is driving this momentum- we have seen equities move higher and Gold touching $1200 which exemplifies this. In addition the USD is being hit by continued diversification by China and Russia amongst others out of USD as a reserve and into other currencies such as the EUR & CAD. Expect the wrangling over the current USD weakness to continue and intensify if the trend continues. Intervention may be a strong tactic but there are certainly alot of unhappy economies with the recent USD weakness.
Sterling seems to be one of the few currencies losing against the USD and we have seen the pound fall against the USD, JPY and the EUR. There is a nervous feel about the markets today contributing to sterling weakness and we have seen the FTSE fall 1.8% already this morning. Dubai is requesting a re-structuring of their debt which has shook the credit markets- this could be contributing to the jitters. The pound may also be falling from the hangover of recent dovish comments by Mervyn King coupled with the risk aversion in the markets. Since 7 a.m Sterling lost nearly 2 cents against the USD, nearly a cent on the EUR and 300 pips on the JPY.
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December 21st, 2009 at 7:05 am
I keep hearing from other trades around the net a couple of different things over and over again. They are tired of losing money in FX and trading has been tough this past month. Thankfully those two problems are not on our list and we are only concerned with how to continually increase our gains, continue to reduce our draw downs and make trading easier and easier for us.
I received an email this week from a trader who had been with the group in the past but felt the timing wasn’t right and went on to loss over a 100K in 4 years. I quickly did the math in my head to see what that account would had been with a 24-36% yearly return and realized in the neighborhood of $236,000-342,000 is a very nice sized account.
I find it interesting how traders often shake off 2-3% monthly profit as if it is nothing. How many times have you had a “bad month” and had a 20-30% draw down they now to need to spend all of their time and money trying to recover from. How long do you think it would take you to recover from a draw down that size?
The time is now for you to build you future. You have to have a plan to follow and you have to make the choice today to do it. Time passes us by quickly.
Open Positions are being added into the member area long with closed positions for the 8 hour Conquer v2.0 and also trade signals with entry price, stop loss & target price as well as alerts for when to move stops to lock in gains.
Enjoy your weekend and I’ll see you all Sunday evening for the market open.
Take care