Forex: Bearish U.S. Dollar Sentiment Gathers Pace, Euro Breaks Narrow Range

Talking Points

Japanese Yen: Mixed Amongst Major Currencies
Pound: BOE’s Posen Sees Scope For Further Easing
Euro: ECB Says Rates ‘Appropriate’
U.S. Dollar: Producer Prices, Trade Balance on Tap

 

The U.S. dollar weakened further against its major currency counterparts, with the EUR/USD rallying to a high of 1.4121 on Thursday, and the bearish momentum behind the greenback may carry into the end of the week as investors expect the Fed to expand monetary policy further. As EUR/USD breaks out of the narrow range from earlier this week, we are likely to see the pair continue to retrace the decline from earlier this year, and euro-dollar looks poised to make a run at 1.4440-50, the 78.6% Fibonacci retracement from the 2009 high to the 2010 low, as price action holds steadily above the 61.8% Fib around 1.3890-1.3900. With the 50-Day moving average (1.3158) approaching the 200-Day SMA at 1.3165, the bullish crossover suggests that the exchange rate will continue to push higher throughout the month, but there could be a corrective retracement in the coming days as the recent rally remains overbought. Given the strong bearish sentiment underlying the greenback, we would need the RSI to fall back below 70 to see a pullback in the exchange rate, and the rally may carry into the following week as the index bounces back to 78.

 

Meanwhile, the European Central Bank reiterated that the interest rate is “appropriate” in its monthly report and went onto say that price growth remains contained as the ongoing slack within the economy bears down on inflation. At the same time, ECB board member Yves Mersch said that the recovery in Europe remains in-line with the central bank’s forecast and that the recent slew of soft data “does not warrant increased pessimism” for the region, but went onto say that it remains “too early to claim victory” as the economic outlook remains clouded with uncertainties. As the Governing Council maintains a neutral outlook for future policy, the ECB may look to reestablish its exit strategy going into 2011, which would instill a bullish outlook for the single-currency in the beginning of the following year as the Fed maintains a dovish stance.

 

The British pound rallied to a fresh monthly high of 1.6066 during the overnight, and the exchange rate is likely to push higher going into the end of the week as carves out a short-term bottom around 1.5700, the 38.2% Fibonacci retracement from the 2009 low to high. As a result, the GBP/USD looks poised to test the 23.6% Fib around 1.6230-40, and the pair may continue to retrace the decline from the beginning of this year as the rally gathers pace. Meanwhile, Bank of England board member Adam Posen said that the global economy needs increased monetary stimulus according to an article in the Handelsblatt newspaper, and Mr. Posen may push to expand policy further in the coming months given the substantial amount of slack within the real economy. As a result, the British Pound is likely to face increased volatility over the following week as the BoE is scheduled to release its policy meeting minutes on Wednesday, and a three-way split within the MPC could spark a sharp selloff in the GBP/USD as market participants see scope for the BoE to expand quantitative easing further over the coming months.

 

The greenback weakened against all of its major counterparts, with the USD/JPY tumbling to a fresh yearly low of 80.88, but the dollar is likely to face increased volatility going into the end of the week as the economic docket is expected to reinforce a mixed outlook for future growth. Producer prices in the world’s largest economy is forecasted to increase at an annualized pace of 3.7% in September after rising 3.1% in the previous month, while the trade deficit is expected to widen to -$ 44.0B in August from -$ 42..8B in the month prior. However, market participants may turn a blind eye to the economic developments as they look towards the Fed’s interest rate decision on November 3, and comments from the central bank are likely to play an increased role in dictating price action as investors weigh the prospects for future policy.

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Forex: U.S. Dollar Mix On Thin Trading, Euro Holds Tight Range

Talking Points

Japanese Yen: Mixed Against Majors
Pound: U.K. Banks Raise Borrowing Costs
Euro: Holds Narrow Range For Third Day
U.S. Dollar: ECB Trichet, Fed’s Yellen on Tap

 

The Euro fell back from a high of 1.4006 during the overnight trade to maintain the narrow range from the end of the previous week, and the exchange rate may hold steady throughout the day as the economic docket remains fairly light for Monday. The EUR/USD was unphased by the comments from the European Central Bank as price action held within a 90pip range, but the speech by central bank President Jean-Claude Trichet scheduled for 16:00 GMT could spark increased volatility in the exchange rate as investors weigh the outlook for future policy. ECB board member Guy Quaden said the Governing Council may decide to normalize monetary policy further in the first quarter of 2011 as he expects the region to grow at a “slower, more moderate pace,” and went onto say that current policy remains “appropriate” during an interview with Bloomberg News.

 

At the same time, Governing Council member Lorenzo Bini Smaghi held a hawkish tone during an interview with Market News International and said “some inflationary pressures” are becoming apparent, led by higher energy costs, and the central bank may look to reestablish its exit strategy going into the following year as they maintain their one and only mandate to ensure price stability. ECB President Trichet may talk up the likelihood for a rate hike in the beginning of 2011 as the outlook for growth and inflation improves, and hawkish comments from the central bank head could drive the EUR/USD higher going into the end of the year as market participants speculate the Federal Reserve to increase quantitative easing at its next rate decision in November. However, as the recent rally in the euro-dollar remains overbought, with the daily relative strength index holding at 77, a corrective retracement may unfold in the days ahead, which could lead the pair to test 1.3500, the 50.0% Fibonacci retracement from the 2009 high to the 2010 low, for near-term support.

 

The British Pound bounced back from a low of 1.5913 during the European trade, with price action holding above the 10-Day moving average at 1.5850, and the GBP/USD may continue to trend higher over the near-term as it maintains the rally carried over from the previous month. As a result, the pound-dollar may make another run at 1.6000 later today as it retraces the overnight decline, but a shift in market sentiment could push the exchange rate lower as the U.S. dollar appears to be regaining its footing against its major counterparts. Meanwhile, a report by the Bank of England showed commercial lenders in the U.K. raised the cost of two-year fixed mortgage rates with a 25% deposit in September to 3.79% from 3.74% in the previous month, and the central bank is likely to maintain a dovish outlook for future policy as household and businesses continue to face tightening credit conditions. The BoE minutes due out later this month is likely to show the majority of the MPC vote to maintain its current policy in October, but a three-way split within the central bank could trigger a selloff in the British Pound as investors speculate the board to expand QE in the coming months.

 

U.S. dollar price action was slightly mixed overnight, with the USD/JPY slipping to a low of 81.71, and the greenback could face choppy price action throughout Monday’s trade as the U.S. bond market remains closed in observance for Columbus Day. With no scheduled event risks, risk trends are likely to dictate price action as the equities market are set to open their doors, but here could be a shift in market sentiment as members of the Fed are scheduled to speak throughout the day.

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Forex: Euro Under Pressure, U.S. Dollar Benefits From Safe-Haven Flows

Talking Points

Japanese Yen: Slightly Mixed Across the Board
Pound: U.K. Construction Expands At Faster Pace
Euro: Investor Confidence Improves Further
U.S. Dollar: Pending Home Sales, Fed Chairman Bernanke on Tap

As EUR/USD price action holds below the 61.8% Fibonacci retracement from the 2009 high to the 2010 low around 1.3880-90, a corrective retracement could unfold in the days ahead as the rally from the September remains overbought, and the daily relative strength index should fall back below 70 this week if we see the exchange rate work its way back towards the 50.0% Fib around 1.3500. The euro-dollar showed little reaction to the Sentix survey even though the report showed investor confidence increased to a three-year high of 8.8 in October from 7.6 in the previous month, and shift in market sentiment could drive the exchange rate lower throughout the day as risk trends continue to dictate price action in the currency market. However, if the euro-dollar is able to find short-term support around the 50.0% Fib, there could be a phase of consolidation over the coming weeks given the uncertainties surrounding the economic outlook, and the EUR/USD may trend sideways before we see another breakout in the exchange rate.

Meanwhile, Ireland’s central bank lowered its growth forecast for the region and expects GDP to expand 0.2% this year amid an initial forecast for a 0.8% rise, while the growth rate is anticipated to increase 2.4% next year versus earlier projections for a 2.8% expansion. The central bank went onto say that the recovery in Europe remains “uneven” as the rebound in economic activity appears to be tapering off in the second-half of the year, and went onto say that the outlook remains clouded by high uncertainties as the governments operating under the single-currency struggles to manage their public finances. In addition, the economic docket showed producer prices in the Euro-Zone increased at an annual pace of 3.6% in August after expanding 4.0% in the previous month, and the slower pace of inflation paired with the slowing recovery could lead the Governing Council to maintain a dovish policy stance going into 2011 as it aims to balance the risks for the region.

The British Pound bounced back from a low of 1.5748 during the European trade as U.K. policy makers held an improved outlook for the region, but the GBP/USD is likely to trade within the narrow range carried over from the previous week as price action struggles to hold above 1.5900. Chancellor of the Exchequer George Osborne said the economy has “moved out of the danger zone” during an interview with BBC Radio, while former Bank of England Deputy Governor John Gieve talked down speculation for a further expansion in quantitative easing and said interest rates will have to rise going forward according to an article in the Guardian newspaper. As investors mull over the outlook for future policy, the GBP/USD is likely to hold steady ahead of the BoE interest rate decision later this week, but the central bank may refrain for releasing a policy statement like we’ve seen for the past few months.

The greenback bounced back against most of its major counterparts, with the USD/JPY rallying to a high of 83.86 overnight, but the dollar is likely to face increased volatility later today as the economic docket is expected to reinforce a mixed outlook for the world’s largest economy. Pending home sales in the U.S. is forecasted to increase 0.9% in August following the record 20.1% drop in the previous month, while factory orders are projected to fall 0.4% during the same period after tipping 0.1% in July. In addition, Fed Chairman Bernanke is scheduled to speak regarding the economy later today, and comments from the central bank head could shake up the majors as investors weigh the prospects for future policy.

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Forex Euro Dollar Forex Robot – How The Settings On The Robot Increase Profits

Did you know that the largest financial market even larger than the New York Stock Exchange which trades at $ 20 billion is the foreign exchange markets? At the rate of $ 3 trillion a day! Wow! And just to think that you could be part of that with just a small investment makes you feel as if you have won the lottery. It is all within your grasp!

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Forex robots are big business online but it’s not the trader who makes money it’s the vendor. It’s a wonder that traders actually believe they will make money with them as most have a fatal flaw which is enclosed in this article.

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Some owners of Forex Robots declare that their software system programs can give you big profits instantly. And some manufacturers of these currency trading Robots often say that their system software can work automatically and is reliable to do the Forex Trading for you.

There are real and fake forex products out there. Don’t be afraid forex is a profitable industry that is highly profitable but be careful who you work with. Find out more now.

When looking at legitimate Forex trading software programs online many people fall victim to clever little tricks and methods employed by the Forex Robot owners to inflate or distort the program’s effectiveness. One such trick is by displaying the ‘back test’ results. The back test results represent the results of the software running in demo mode and although they can give a decent representation of how well the Forex Robot can perform they also can be altered to fit the bill.

Euro Exchange Rate Graph Today – Understanding Forex Trading

Euro Exchange Rate Graph Today

The Foreign Exchange market, also referred to as the “Forex” or “FX” market, is the largest financial market in the world, with a daily average turnover of well over US $ 1 trillion – 30 times larger than the combined volume of all U.S. equity markets. The word FOREX is derived from the words FOReign EXchange. Euro Exchange Rate Graph Today

Spot and Forward Foreign Exchange

Forex trading may be for spot or forward delivery. Spot transactions are generally undertaken for an actual exchange of currencies – delivery or settlement – for a value date two business days later.

Forward transactions involve a delivery date further in the future, sometimes as far as a year or more ahead. By buying or selling in the forward market, it is possible to protect the value of any anticipated flows of foreign currency, in terms of one’s own domestic currency, from exchange rate volatility.

Difference Between Foreign Currency and Foreign Exchange

Anyone who has traveled outside their country of residence would have had some exposure to both foreign currency and foreign exchange.

For example, if you live in the United States and travelled, lets say, to London, England you may have exchanged your home currency i.e. US $ for British Pounds. The British Pounds are referred to as a foreign currency and the act of exchanging your US $ for British Pounds is called foreign exchange.

The Foreign Exchange Market

Unlike some financial markets, the foreign exchange market has no single location as it is not dealt across a trading floor. Instead, trading is done via telephone and computer links between dealers in different trading centres and different countries.

The FX market is considered an Over The Counter (OTC) or ‘interbank’ market, as transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as it is with the stock and futures markets.

Reasons for Buying and Selling Currencies

Through the mechanism of the foreign exchange market companies, fund managers and banks are enabled to buy and sell foreign currencies in whatever amounts they want. The demand for foreign currency is stimulated by a number of factors such as capital flows arising from trade in goods and services, cross-border investment and loans and speculation on the future level of exchange rates. Exchange deals are typically for amounts between $ 3 million and $ 10 million, though transactions for much larger amounts are often done.

There are two basic reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.

Currency Speculation

Speculators desire to trade forex for the opportunity to profit from a movement in currency exchange rates. For example, if a trader believes that the Euro will weaken relative to the U.S. dollar, then the trader can sell Euros against U.S. dollars in the Forex market. This is referred to as being “short Euros against the dollar” which, from a trading perspective, is the same as being “long dollars against the Euro”. If the Euro weakens against the dollar, then the position will profit

For speculators, the best trading opportunities are usually with the most commonly traded and therefore most liquid currencies, called “the Majors.” Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. Euro Exchange Rate Graph Today

True 24 Hour Market

Forex is a true 24-hour market and trading begins each day in Sydney, and moves around the globe as the business day begins in each financial centre, first to Tokyo, then London, and then New York. Unlike any other financial market, traders can respond to currency fluctuations caused by economic, social and political events at the time they occur – day or night.

As with all financial products, FX quotes include a “‘bid” and “offer”. The “bid” is the price at which a dealer is willing to buy – and clients can sell – the base currency for the counter currency. The “offer” is the price at which a dealer will sell – and clients can buy – the base currency for the counter currency.

The US Dollar is the Centre-piece

The US dollar is the centre-piece of the Forex market and is normally considered the “base” currency for quotes. In the “Majors,” this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $ 1 USD per the other currency quoted in the pair. The exceptions to USD-based quoting include the Euro, British pound (also called Sterling), and Australian dollar. These currencies are quoted as dollars per foreign currency as opposed to foreign currencies per dollar.

What Affects the Currency Prices

Currency prices are affected by a variety of economic and political conditions, most significantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention.

Any of these factors, as well as large market orders, can cause volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to “drive” the market for any length of time.

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities. Fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumour.

Rewards and Risks in the Forex Trading Market

Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced traders.

However, there is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.

Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.

Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, you should not invest money you cannot afford to lose.

As an investor you may lower your exposure to risk by employing risk-reducing strategies such as “stop-loss” or “limit” orders.

There are also risks associated with utilizing an Internet-based deal execution software application including, but not limited to, the failure of hardware and software. Euro Exchange Rate Graph Today

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Forex Euro Dollar Rate – How To Calculate Profits In A Forex Trade

Forex Euro Dollar Rate

Unlike the stock, futures, or options markets, calculating profits in the foreign exchange market can be a bit more complex. This is because you have to transfer profits from the foreign currency you purchased back into your home currency.

This concept is best understood through an example. So, let’s say you have 10,000 US dollars, and let’s say the EURUSD is trading at 1.5000. This means that 1 euro buys you 1.5000 US dollars — or, conversely, one US dollar buys you 0.667 euros (1 / 1.5 = 0.666). So, with your 10,000 US dollars, you are able to buy about 6,666.66 euros.

Now, let’s say the EURUSD exchange rate jumps up to 1.5500 — meaning that one euro can now buy you 1.5500 US dollars. Since the euro rose in value since you made your purchase, you can now sell your euros for more dollars than you initially purchased them with. In other words, you made a profit!

To realize your profit, all you need to do is convert the 6,666.66 euros you now have back into US dollars. Since one euro now buys you 1.5500 US dollars, you can simply multiple your quantity of euros — 6,670 — by the exchange rate (1.5500). The result is 10,333.33. So there you have it — a profit of 333.33 US dollars! Forex Euro Dollar Rate

Profiting By Selling a Currency (aka “Going Short”)

Slightly more involved are transactions in which you go short — in other words, in which you believe the exchange rate is going to fall. In such a scenario, what you are actually doing is borrowing the currency you believe is going to fall in value. So, let’s say you borrow the equivalent of 10,000 US dollars when the EURUSD is trading at 1.5000. This means you have borrowed about 6,666.66 euros, and have used those borrowed funds to purchase 10,000 US dollars.

Now, let’s assume the exchange rate falls to 1.4500, and you decide you want to exit the trade. To do this, you simply want to exchange the 10,000 US dollars you purchased back into euros at the new exchange rate. At a rate of 1.4500, your 10,000 US dollars buys you 6,896.55 euros. You now have to repay the original 6,666.66 euros you borrowed, leaving you with 229.89 euros. You then want to convert this back into US dollars — your home currency — which, at an exchange rate of 1.4500, amounts to 333.33. This is your profit from the trade.

As you can see, foreign exchange trades can be a bit more complex than your typical stocks or futures trade — but if you take it step by step, you’ll see it’s really just a few straightforward math equations. Forex Euro Dollar Rate

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Forex Euro Dollar Chart – What is the Best Currency Pair to Trade?

Forex Euro Dollar Chart

If you’re involved with currency trading, you obviously know what forex pairs are. The pair is the two currencies that are currently involved in your trade. So lets take US dollars and Swiss francs as an example, if you’re trading those two currencies the pair is USD/CHF.

It’s possible to trade any two currencies of the world, but that’s a bright idea really, as you need to be trading two currencies that have larger financial powers. It doesn’t necessarily mean that you should be trading currencies of two of the most powerful countries. Switzerland is a major currency when it comes to forex trading, even though it’s only a relatively small country. The reason why it’s a big player in the forex world, is because the Swiss bank are important globally.

Below are the 6 most popular forex pairs, they account for 90% of trades on the forex market. They are: Forex Euro Dollar Chart

*EUR/USD – The Euro and the US Dollar.

*GBP/USD – The British Pound and the US Dollar

*USD/JPY – The US Dollar and the Japanese Yen

*USD/CHF – The US Dollar and the Swiss Franc

*AUD/USD – The Australian Dollar and the US Dollar

*USD/CAD – The US Dollar and the Canadian Dollar

It’s quite rare that traders get involved with other currencies, but the most experienced traders do tend to trade different pairs from time to time, which usually involves the New Zealand Dollar. If you’re just starting out it’s vital that you stick with the major forex pairs.

The US is the most popular currency when it comes to trading, it’s involved in 85% of all trades according to the latest study. The Euro is the second most popular at 37%. Next follow the Yen, Pound, Franc, AUD and CAD.

What Is The Best Currency Pair For A Beginner?

There is a lot of information online about trading with the EUR/USD pair. Seriously, there is a lot of valuable information out there that you can use to start trading with this currency pair. Experts recommend beginner’s start out with trading this popular forex pair, due to the wealth of information available online.

If you’re just starting out you definitely want to stick with EUR/USD. If, for whatever reason, you don’t want to stick with that, then I recommend you trade the GBP/USD pair. Forex Euro Dollar Chart

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Cambio Forex Euro Dollaro Usa – So, What Does FOREX Trade Mean?

Cambio Forex Euro Dollaro Usa

FOREX Contract Size
FOREX currencies are traded in a standard contract lot size of 100,000 units (ex: 100,000 US dollars) of the base currency. A unit equals one (1) or single unit of currency (ex: 1 unit = 1 US Dollar). Cambio Forex Euro Dollaro Usa

FOREX Trade Pairs
All FOREX trades are made up of a foreign currency pair, for example the EUR/USD pair.

Let’s assume we’re trading the Eurodollar and the US Dollar FOREX pair (EUR/USD). The first currency in the pair (EUR/USD) is called the base currency, which is the Euro in this case. The second currency is called the quoted currency (EUR/USD). In this example it’s the US Dollar.

FOREX Pair Price/Quotes
All FOREX currency pairs have a corresponding price/quote. So, when trading or viewing a price quote of a FOREX pair, using our example, you would see this:

EUR/USD 1.2526/2528 – – often shown as EUR/USD 1.2526/28 – – with the latter price showing only the last 2 digits.

(These price/quote numbers are for example use only, and do not reflect actual or current pricing)

The Bid/Ask
The price/quote of our FOREX pair example – EUR/USD 1.2526/28 – is referred to as the bid/ask. In currency trading, think of a forex pair as a single unit, even though it has two currencies. You can either buy the pair or sell the pair. So, in our example here, if selling the EUR/USD pair, you would sell (1) EUR unit, and this would equal to simultaneously buying or receiving 1.2526 US Dollars. Cambio Forex Euro Dollaro Usa

PIPs
PIP’s (aka: Price interest Point) are another very important and unique part of a FOREX trade. In the FOREX market, currency pair quotes/prices are quoted out to the fourth decimal point.

Different currencies don’t all go out to 4 digits. The Japanese Yen for example only goes out two decimal points like this – 123.17 – the “7” being the PIP.

In this example (EUR/USD = 1.2526/1.2528 – the PIP in each price/quote is the last digit (6 & 8) in the price/quote number. The difference between the two prices/quotes is called the PIP spread, and in our example it is a 2 PIP (= 0.0002) spread. This spread is how the FOREX brokerage firm handling your trade makes money. They buy slightly lower than the ask or selling price, and profit off the difference.

This can be confusing at first. But the more you learn about FOREX trading, the clearer this will become. Just stick with it, and eventually the fog will lift on better understanding the simultaneous buying/selling of a currency pair, calculating PIP’s and trade profits, the bid/ask, etc. Cambio Forex Euro Dollaro Usa

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Forex Euro Dollar Forecast – Forex Trading Currency Pairings and What They Mean

Forex Euro Dollar Forecast

When talking to people who have never tried forex trading before, even if they come from the world of stocks, bonds, or futures, it always reminds me that sometimes even the most basic foundational elements of this global powerhouse of a market have to be explained. So let’s jump right into what the pairings mean, what the main pairings are, and what the cross pairings are.

What is a currency pair? Let’s start with the Eur/Usd which has the US Dollar as the base currency in the pair against the Euro. So what does that mean when I see a price quote of 1.3200 on the Eur/Usd? The easiest way to remember the answer is this: take the base currency pair, in this case the US Dollar, look at the price quote of 1.3200, and then say, “it will take 1.3200 US Dollars for me to buy 1 Euro.” That is exactly what that price quote means. If you check the price quote a couple of months later and it is suddenly 1.4000 then that means the US Dollar as gotten weaker against the Euro because it now takes 1.4000 US Dollars to buy 1 Euro. Conversely, if the price quote is 1.2500 a couple of months later, then the US Dollar has become stronger because now it will only take 1.2400 US Dollars to buy 1 Euro. Forex Euro Dollar Forecast

Forex trading can be especially challenging when you see a price quote of say 100.50 on the Usd/Jpy pair for example. Well, using our method from above, simply take the base currency of Jpy and look at the price quote of 100.50 and that is how many Jpy it will take to buy 1 US Dollar. Pretty easy huh? Now you will have no difficulty understanding the price quote on any pair the next time you look at a chart screen or a quote window.

Now that we know how to read the price quotes, what are the main pairs and cross pairs? Well the main pairs are usually the strongest economies throughout the world versus the US Dollar. A few of these pairs are Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Cad, Usd/Jpy, and Nzd/Usd. A cross pair is a pair not involving the US Dollar such as Eur/Jpy, Gbp/Jpy or Eur/Gbp to name a few of the more popular ones.

Hopefully this brief article will be helpful to you if you have been intimidated by the forex trading landscape in the past. It takes a little getting used to with all of the different currency pairs, time zones, and economies. But once you start to wrap your mind around how all of the pieces fit together it’s really not that bad – and many of us think it’s actually quite fun! Forex Euro Dollar Forecast

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Forex Euro Dollar Chart – Best Forex Charts

Forex Euro Dollar Chart

What are the best Forex charts out there? That’s the main question that many people want to know! And by realizing that mastering the reading and analysis of these Forex Charts means success, nothing; and I do mean absolutely nothing, will stop you!

So we are going to go over some of the best charts that are out there that can have you seeing a big time amount of success on a regular basis!

Euro to U.S. Dollar Chart
This is probably one of the most important out there, because most of the people reading this will either have access to U.S Dollars predominantly, or to the Euro. The Euro currency chart is important because the Euro is actually seen today as the US alternative to the relative store of value, and the medium of transactions. It responds extremely strong to the market perceptions and the health of the global/world economy!

The Euro, Swiss Franc Dollar Chart
This is an incredible chart because it will tell you the divergence between the main policy goals when it comes to the Swiss National Bank and the European Central Bank. Switzerland has a very small size and an incredible need to have great economy on exports, and that’s where the Swiss national bank is mostly sensitive to. The European Union deals with mostly economics and population which leads the European Central Bank to become much more consistent when it comes to price stability. Forex Euro Dollar Chart

US Dollar & Japan Yen Charts
These currency pair charts, whether measuring volatility, trends, or looking at anything; it’s highly important that you learn to master this extremely useful chart! Back in the day, it used to be the perfect pair to trade simply because it functioned ultimately as a barometer and plunged at times during aversion.

This is a great chart to master, especially when learning how to trade these two pairs together; it’s incredible opportunity.

This is why Forex charts are extremely important when it comes to trying to be successful; it’s quite useless only to go off of pure USD charts, because this simply will not give you the complete picture when it comes to trying to make money on Forex. One of the things that’s helping people that also utilizes charts automatically is something called Forex Software.

The reason why these Forex Software are so great is because you will gain the ridiculous advantage when it comes to trading, because you’ll be trading automatically and you will not have to deal with the crazy amount of emotions; software does all of it’s trade based on mathematics and logic! Forex Euro Dollar Chart

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