US Dollar Strengthens as Eurozone Concerns Resurface - By Reymount

US dollar is strengthening in Forex trading as concerns about the eurozone continue to weigh on world markets. Slightly disappointing data in the United States, along with worries that the debt crisis in Europe isn’t properly contained, are sending Forex traders looking for safe haven, and that is boosting the greenback.

Greenback is gaining against its major counterparts — except the Japanese yen — today as concerns about Europe dominate the financial headlines. The world awaits Spain’s budget, due to be released on Friday, and worries that it will prove that debt contagion is not contained are running rampant. Protests against austerity are taking place in Spain, and there are concerns that could influence the budget. Not only that, but economic confidence in the eurozone slipped a little bit, instead of rising slightly as expected.
Additionally, there are concerns about data out of the United States. Even thought the last GDP data remained unrevised, and even though unemployment claims fell slightly, there are still concerns about economic growth. Many feel as if the US economy isn’t growing fast enough, and that is weighing on risk appetite and increasing demand for the US dollar.
At 13:21 GMT EUR/USD is lower at 1.3268, down from the open at 1.3319. GBP/USD is down to 1.581 from the open at 1.5889. USD/JPY is lower at 82.0400, down from the open at 82.8950.

Not Trading Forex Yet? Big Mistake! - By Reymount

Forex trading popularity is on the rise. Many investors and curious bystanders are now turning to currency exchange. What is so attractive about forex? Why is it a comfortable way of investment? Why is forex the talk of the day? 

Forex market is the largest and most liquid market in the world. Lots of big corporations are taking part – banks, currency speculators, government, and financial institutions. Along with big fish, there are traders like you and I, who slowly but surely take part in the $3 trillion daily turnover.

What is so attractive about forex anyway? What made you enter the market arena?

1.    Trade Any Time, Any Day!

In the beginning, several years ago, before turning forex to a full-time career, I traded part-time. The greatest thing about this investment is that you can turn it to fit your needs. The fact that forex market is up and running for 24 hours, it is continuous and volatile,  makes it possible to enter trades when It best suits you and still make generous chunks of money without the need to search the market for opportunities 24/7. 

2.    Control Large Sums of Money

A very important feature in trading is leverage. All forex brokers allow traders to use leverage, which is basically a loan that allows you to trade much more money than you actually have in the trading account. For example, if the leverage is 100: 1, you can trade $100 for every $1 in your account. This also means, you can trade $100,000 having just $1,000 of your own capital. 

3.    Even Small Movements Means Profit

Forex is all about liquidity. Large sums of money are getting in and out of the market even with minimal price movements. Besides, you can choose the direction of your trading decisions. If you believe that the currency pair is going up – buy it! If you think that the currency pair is likely to fall in price, sell it!

4.    Relatively Low Fees

We all know that brokers get their commissions via spreads. So since there is no transaction fee, there are fewer expenses for an average trader. There might be some extra fees here and there, but it is generally quite low compared to other commodities and stock market fees.

5.    Practice Makes Perfect

My favorite feature in online currency trading is the ability to practice. All forex brokers offer free demo accounts to all traders. On top of that, many have courses and webinars for free or for rather small fee. Mini accounts with very small minimum deposit requirements are also great for practicing. You can get the feel of the market without potentially devastating losses.

6.    Money and Risk Management

In forex, like in any other kind of investment, there is a chance of loss. I wouldn’t even use the word “chance”, because loss is the required part of the game! The good thing is that you can control your money and risk with stop/loss to limit losses based on irrational decisions.

7.    Trading Platforms and Tools

Today brokers constantly compete for reputation and customers. Every broker differ in one way or another – trading platforms are all different (whether in configuration, download or online, tools included, or user-friendly interface etc.), deposit requirements,  features and available tools are unlike, services and support is definitely unique. This colorful variety allows you to find what suits you best. 

Reymount Products:

Online Forex Trading,  Online CFD Trading, Precious Metals Trading

Greece on a diet for EUR recovery - By Reymount

The EUR returned to a level above 1.3230 after confidence was restored in the 17 country currency by the passing of the Greek bailout. Default is still on the horizon as the terms imposed on Greece are harsh and have drawn criticism from economists who warn that the lessons from Argentina should not be forgotten.

Greece has the difficult task of cutting its deficit from 160 percent of GDP down to 120 percent while in the midst of a recession. It is clear what the EU got out of this deal. Greece is likely to default as the social pressure will be too intense and the proposed tax increases and wage cuts will bring protest to the streets.
The real winners are Italy and Spain which get to decrease their yields as the ECB has bought them time.  Spain’s 10 year bond yield is 5.08 percent down from last year’s high of 6.7 percent . Italy’s 10 year yield is down to 5.4 percent down from 7.1 in December. Will this extra time be used wisely is the question?
Which leads to the uncertain part of the deal. Greece is the first of the so called PIGS to be in this position, not the last. Portugal, Italy and Spain are expected to join if they cannot get their economies in order. But that is easier said than done as proved by Greece. The EU hopes that Greece (the smallest of the PIGS) is the example that the other’s will follow, and worst case scenario will serve as the example of what not implementing austerity measures in the first place will get you.

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Forex Technical Analysis for Week 02/20—02/24 By Reymount

Floor Pivot Points
Pair	3rd Sup	2nd Sup	1st Sup	Pivot	1st Res	2nd Res	3rd Res
EUR/USD	1.2674	1.2824	1.2984	1.3134	1.3294	1.3444	1.3604
GBP/USD	1.5475	1.5559	1.5692	1.5776	1.5909	1.5993	1.6126
USD/JPY	75.80	76.58	78.06	78.84	80.32	81.10	82.58
EUR/JPY	99.82	100.81	102.68	103.67	105.54	106.53	108.40
GBP/JPY	118.61	120.14	122.99	124.52	127.37	128.90	131.75

Woodie’s Pivot Points
Pair	2nd Sup	1st Sup	Pivot	1st Res	2nd Res
EUR/USD	1.2827	1.2989	1.3137	1.3299	1.3447
GBP/USD	1.5571	1.5716	1.5788	1.5933	1.6005
USD/JPY	76.76	78.42	79.02	80.68	81.28
EUR/JPY	101.03	103.12	103.89	105.98	106.75
GBP/JPY	120.47	123.65	124.85	128.03	129.23

Camarilla Pivot Points
Pair	4th Sup	3rd Sup	2nd Sup	1st Sup	1st Res	2nd Res	3rd Res	4th Res
EUR/USD	1.2974	1.3059	1.3087	1.3116	1.3172	1.3201	1.3229	1.3315
GBP/USD	1.5705	1.5764	1.5784	1.5804	1.5844	1.5864	1.5884	1.5943
USD/JPY	78.31	78.93	79.14	79.34	79.76	79.96	80.17	80.79
EUR/JPY	102.98	103.76	104.03	104.29	104.81	105.07	105.34	106.12
GBP/JPY	123.43	124.64	125.04	125.44	126.24	126.64	127.04	128.25

Tom DeMark’s Pivot Points
Pair	EUR/USD	GBP/USD	USD/JPY	EUR/JPY	GBP/JPY
Resistance	1.3214	1.5951	80.71	106.04	128.14
Support	1.2904	1.5734	78.45	103.18	123.76

Fibonacci Retracement Levels
Pairs	EUR/USD	GBP/USD	USD/JPY	EUR/JPY	GBP/JPY
100.0%	1.3284	1.5861	79.61	104.66	126.05
61.8%	1.3166	1.5778	78.75	103.57	124.38
50.0%	1.3129	1.5753	78.48	103.23	123.86
38.2%	1.3092	1.5727	78.21	102.89	123.34
23.6%	1.3047	1.5695	77.88	102.47	122.70
0.0%	1.2974	1.5644	77.35	101.80	121.67

GBP/JPY — Double Bottom (Sort of) on Weekly By Reymount

GBP/JPY has formed a pattern that looks like a double bottom on its weekly Forex chart. It ends the descending trend wave that has started back in August 2009, which itself is a part of the longer downtrend with beginning in July 2007. The pattern isn’t perfect — the second bottom isn’t exactly on the same horizontal line as the first one, and the price haven’t rose to the initial point of the pattern yet, so it may still form symmetrical triangles, a continuation pattern. But, nonetheless, it’s a good a setup if you don’t jump into a trade right away.

I use the horizontal channel setup as the entry/exit system for this double bottom pattern. The borders of the ”channel” are marked with the yellow lines on the image below. The entry points (cyan lines) are located at +/-10% of the ”channel’s” height. Green lines show the probable targets of the breakout trades — they are located at +/-100% of the ”channel’s” height. Stop-loss can be set to the low/high of the breakout bar or the bar preceding the breakout. You can click on the image to get the full-size chart:



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Canadian Dollar Snaps Four-Day Winning Streak on Slower Annual Inflation

Canada’s dollar dropped versus its U.S. counterpart as a government report showed annual inflation slowed more than economists projected, weakening the argument for higher interest rates. 

 Orange Juice Jumps to Record on Texas Disease, U.S. Import Probe

Orange-juice futures surged to a record on mounting concern that U.S. supplies may be reduced by citrus-greening disease in Texas and a slowdown in imports as the government tests for a banned fungicide. 

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