EUR/USD Technical Analysis

hmunawer1

| Wednesday, 29 May 2013 21:08

EUR/USD inched closer to 1.30 on Wednesday following strong CPI data from Germany. The pair has consolidated in the mid-129 region following the close of European markets. With no key economic releases slated for Wednesday, the pair is likely to hold steady in North American trade. Below we survey the market vitals for this pair and where we expect it to go this week.

EUR/USD Performance Tracker

5-Day: +0.15%

Outlook: Slightly bullish

Pivot: 1.2954

Support levels: 1.2942, 1.2934, 1.2921

Resistance levels: 1.2967, 1.2974, 1.2987

Movement for this pair could pick up over the next two days, as the US is set to release a few key economic indicators. Traders should keep the following releases in mind:

Thursday:

• Weekly job claims
• GDP revision
• Pending home sales

Friday:

• Personal income
• Consumer spending
• Chicago PMO
• Consumer sentiment

The euro continues to hold steady, despite a mixed bag of German data (high unemployment balance strong CPI). The EUR/USD pair continues to be drawn to the 1.30 line, which most believe is fair value for the time being. On Wednesday the euro gained on the back of investor profit-seeking at the expense of the US dollar.

The euro continues to outperform its other major competitors, signalling a slightly bullish market for key euro pairs. Below is a summary:

EUR/GBP: 0.8561 (+0.1300%)

EUR/CAD: 1.34 (+0.3400%)

EUR/AUD: 1.34 (+0.4600%)

The only blip was the volatile yen market, which pushed EUR/JPY back to 1.3065 rang—a drop of 0.6100% on the day.

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

How to use barriers (support and resistance) in trading

Antonis Nicholas

| Sunday, 26 May 2013 21:05

Hi Everybody!

I would like to discuss the use of Barriers in trading.  These barriers are known as Support and Resistance.  I use the word barriers because a support can turn into a resistance and vice versa.  The important thing to know is that there is a barrier in place.  They can help in opening and closing a trade.  We will discuss how to locate them and how to use them in your trading.  Stronger barriers are usually broken during important market news and events.  The candlestick must close beyond the barrier to consider it broken.

How to find barriers:

There are several ways to locate barriers.  No matter what method you are using, when you look at a chart, it is a good idea to start from a long term time scale and make your way to shorter time scales or the scale you are looking for.  Doing this, you can mark barriers as you see them.  A barrier can be located when the price has difficulty breaking through a particular price several times throughout its movement.  As you make your way to a lower time scale, you will likely see previous barriers that affect shorter time scales as well.  See the example below:

WEEKLY

DAILY

4 HOUR

HOURLY

Another method is using the Fibonacci analysis.

The Fibonacci theory explains that everything has natural levels using the Golden Ratio for example a snail shell.  This will show you the natural barriers present in each graph according to the Fibonacci Analysis.  These levels are created by drawing the Finacci Retracement between the two end points.  The key Fibonacci ratios are 0%, 38.2%, 50%, 61.8% and 100%.  Overlapping lines, are seen as stronger barriers while the key ratios are the “natural” barriers.

WEEKLY

DAILY

4 HOUR

HOURLY

Why they are important and how to use them in trading.

When we see these barriers, we understand first that the market has difficulty breaking them.

For example, this means it will be difficult the open a BUY trade with a barrier 10 pips above our open price.   Accordingly, it is expected to rebound off of it and go against the position.

Likewise, we can use the barrier to make a trade. Using the same example, to open the trade as a SELL position with the expectation that it will rebound and this time go with the position.  Here we can also use a smaller Stop Loss to reduce the risk.  The amount of the Stop Loss depends on which time scale you are using.  The bigger the time scale, the bigger the Stop Loss will be.

In the example below, you can see how the two barriers played a very important role.  At the support (lower barrier), a trade could have been opened with the expectation to reach the upper barrier (the resistance).

As you can see below, again on an hour chart several hours later, we see that the price hit the barrier (at about 1.2920) on its way up, fell back down to the other barrier(about 1.2900)  and again proceeded upward to the “1.2920″ barrier having difficulty in that area.

I hope this is useful to you and I would enjoy answering any questions or feedback you have!

I look forward to your feedback,

Antonis http://openbook.etoro.com/antonisn

Social Investment Specialist

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

Ask yourself, what type of Investor am I?

Steve Hutchins

| Friday, 24 May 2013 19:45

Understanding what type of investor you are is key to understanding how you approach the markets.

Scalper

The “gamblers” of the industry. Often relying on “gut” feelings and emotions or, attempting to jump in to “major” news announcements. Usually disappointment ensues because of liquidity issues at these times. Quite often they will open direct “Hedge” positions in the same pair, to attempt to capture the market one way or another (this doesn’t work either). Scalpers come and go, some get lucky for a while but inevitably their success is short lived.

Many new investors begin this way and then mature into day or swing traders, with knowledge and experience. This type of trading requires full time monitoring of the markets, with open/close of many positions daily, to make small profits, usually with high leverage (risk).

Day (intra-day) traders

These investors usually open positions within 1 trading session or day, their positions are not held overnight. They set positions with stop losses and take profits (although, many will never reach these limits) these investors will check their positions regularly throughout the day and close positions before their SL/TP. As investors, sometimes it’s easy for day traders to forget to look at the bigger picture of the overall underlying trend.

Swing traders

Swing traders generally have a longer term picture and strategy, they are happy to invest with a realistic stop loss and take profit. They usually understand that, it will take time to get the returns they are looking for, therefore, are quite happy to leave their positions open for a number of days or even weeks, to allow the markets to reach their targets. Usually they will accept that their positions will be in loss at some point and lower leverage is used, so are generally less emotional/impetuous about the markets.

Term Traders

Are usually well balanced investors that hold positions for weeks or even months. They have a market strategy and they will stick to it. Usually lower leverage with larger margin values. These investors understand that big gains come from big movements and these come with time.

And now meet the new breed of Investor:

Copy Trader

For Investors that do not want, or cant, make the time to learn the complexities of the markets. Or investors that wish to diversify their portfolios and limit their risk. Simply choose the Top Preforming traders for the Risk levels that suit them. These investors are happy to do their homework on the returns of another investor and let their investments follow.

Investments should still be monitored and not just assume that past performance will be repeated. Losses should be understood and accepted that this is all part of any investment. ImpetuousCopy Traders that constantly “jump ship” at the first loss will find it difficult to maintain performance.

What type of trader are you?

Trading takes time, patience and discipline please don’t hesitate to contact me on the openbook to answer any questions you may have. SteveHu

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

Meet Social Guru Ayoub Ben Rejeb – @BigFx55

Hello dear eToro OpenBook traders.

Today I present to you a very nice and talented social guru I freshly discovered: @BigFx55. This image speaks by itself, right?

Let’s meet him:

Hello dear, can you tell us your name, country, age and language?
Hello, my name is Ayoub from Tunisia, 25 year old, I speak Arabic, English and French.

How did you discover trading and where did you learn to trade?
I discovered trading 3 years ago while I was surfing the net so I started to make some research about it then I fully dedicated my time to learn it from scratch.
I also asked the help of some experts on forums who helped me to make my trading better.

When did you begin to trade professionally?
Well, hard to say professionally as it’s been only 2 years and compared to other experts it’s nothing in trading so I still have time to reach that level.

Are you a full time trader?
I’m a daily trader, so yes full time trading is my job for now.

Why did you choose eToro?
What attracted me the most to eToro is the big community in OpenBook which made trading more interesting as you can discuss with others and make new friends.
Also their platform is easy to use and there is a lot of helpful tools.

How do you choose your trades:   Indicators, news reading, system, expert advisors, personal judgment?
It depends on the situation, I always follow the news because it gives me the bigger picture of what’s happening thou for my trading setups, I use some   indicators to identify some good entry points and of course I add my personal judgment for the situation.

How do you manage risk when trading?
I always try not to exceed more than 5% of my equity on a single trade which gives me more space to make other trades and I always keep free cash for unexpected situation which often happens in Forex.

You make your own trades and also receive positions from other traders, who are they and why did you choose them? 
I’m copying 4 other Gurus with 30% of my equity as they are amazing traders with different styles ( Daily traders + Swing Traders ) which make my   portfolio diversified and that’s good for trading. As Warren Buffet said  ” Don’t put all your eggs in one basket.”
These Gurus are: @rohaann42, @gerdollarman, @robysms61, @anasSleiman

Do you have favorites Currency pairs and why?
My favorites pairs are EUR/USD and USD/EUR. Every trader has a special pair that he feels it’s movement and EUR/USD is mine and what I love about USD/JPY is it’s technical levels which it follows almost all the time.

What do you think about having copiers of your trades on OpenBook?
It’s amazing to have copiers on OpenBook who trust my trading to make profits and I have to admit it’s putting some pressure on me as it’s a new experience I am really enjoying.

If not trading, what would you choose  to do?
I used to be a web-designer & marketer so probably I would continue on that path to open my own agency.

If you have only one wish to be accomplished, what would it be?
For now I only wish that my wife stay safe and healthy because we are having our first baby in 2 months, I can’t wait to hold my baby girl when she’ll come to this world!

Glad to know that! What a wonderful news!

So, dear readers, if you want to discover this young talented trader just visit his wall @Bigfx55and come to say hello on mine. More interviews are coming soon. Stay tuned.

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

eToro : AUD/USD looks weak

The AUD/USD pair took an enormous fall during the last week, the 1.02 level didn’t act as support since it got crashed in a few days from this incredible downside.

Downside penetration for the Aussie is well-recognized in this 30M chart updated on friday

I think that the only good sign for the buyers of this pair is that it didn’t close the week below the 1.000 level. This data will may mean that there will be an inversion of the trend in the upcoming weeks.

At this point I think that it’s better to have a panorama view of the whole situation. Looking at the 1 day chart (where every little candle represent a 1 day price oscillation), we see that not so long ago (exactly one month ago) the cross reached the month-record of nearly 1.06 (1.0584).

After this high-rise , the pair descended the following weeks by reaching another high 1.0384 that formed a shooting star. The descent continued the following days by touching the incredible price of 0.9961 during the last Friday session.

Right now, the 0.97/0.98 level looks like the next target, so a great sell opportunity for everybody since the price may lower a little bit in the next week. However if we have a close look to the 4H chart, a breakout over the 1.02 level may mean a return into the previous 1.04 (resistance) and 1.02 (support) level, but at the moment I see this as a very unlikely situation in the nearer future.

Furthermore, a breakout over the 1.04 will point to a target the 1.06, but this will may take weeks, or months.

Let’s have a look at our technical indicators:

We can observe a majority of neutral signals for the Aussie, that is still uncertain at the moment but looks rather weak at the moment. Be careful.

Written by @AndreaCarnimeo

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

eToro: Daily Equity Prices and Market Overview 10.05.2013

On Friday U.S. equities remained mainly flat, as Commodity prices dropped and hit energy and materials shares hard. Oil and Gold prices tumbled as the U.S. dollar rose after yesterday’s speech by FED of Philadelphia President, Charles Plosser saying that he favors scaling back the central bank’s monthly $85 billion in bond purchases as early as the next Federal Open Market Committee.

Today European equities gained, led by telecoms and healthcare stocks while investors remained optimistic on the key Indices as scope for further gains still exist. Any short-term pullback is likely to be short-lived, as companies have continued to show positive earnings.

The DJ30 closed at 15,082.62 declining 22.50 points (-0.15%), SPX500 closed at 1,626.67 declining 6.02 points (-0.37%) and the NSDQ100 closed at 2,961.12 declining 7.12 points (-0.24%).

The FRA40 closed at 3,953.83 gaining 25.25 points (0.64%) and GER30 closed at 8,278.59 gaining 16.04 points (0.19%). UK100 closed at 6,624.98 gaining 32.24 points (0.49%).

Next week Google Inc. (GOOG) holds its annual developer conference, which is rumored to have new products on display. One of the rumors going around in the tech-circles is that the company will be presenting a new 7-inch Nexus 7 tablet at the developer show. The device will be packed with updated specifications though the price will remain below the $200.

Stocks Execution Prices:

Name	Sell	Buy	Closing Rate	Change %
Apple (AAPL)	451.08	452.08	452.59	-0.92
Google (GOOG)	877.40	879.26	880.23	1.00
Facebook (FB)	26.71	26.78	26.68	-1.33
Microsoft (MSFT)	32.57	32.64	32.69	0.09
Amazon (AMZN)	262.67	263.27	263.63	1.33
Yahoo (YHOO)	26.75	26.82	26.83	2.25
Zynga (ZNGA)	3.20	3.23	3.23	0.62

How has the equity market been treating you lately? Share your thoughts in the comments.

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Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia