Wednesday, June 17, 2009
USD Ranging Dangerously
Last week, the United States Dollar seemed to be rising. Major pairs involving USD like AUDUSD, EURUSD and GBPUSD showed that the trend was going to end. But then again, today, as US news was released, the trends look like they are going to resume.
GBPUSD, EURUSD and AUDUSD are showing signs of climbing back up. Dojis and spinning tops can be seen at the bottom. However, there is also a probability that the rise is temporary and also part of the reversal process. Such serious trend reversals usually do not happen in a day or two. It may take weeks, and before it fully reverses, the price will counter-trend up and down and this might be part of that process.
Tuesday, June 16, 2009
USD Really Going Up in June 2009?
After checking the charts, the United States Dollar seems to be growing strong in June 2009. The previous months’ news all predicted a major downfall but the currency pair charts seem to tell a different story. By looking at the daily charts, I could see reversal patterns:
1. GBPUSD : double tops
2. EURUSD : head and shoulders
3. NZDUSD : trendline break
4. USDCHF : trendline break
5. USDSGD : trendline break
6. AUDUSD : double tops
President Obama could be working his magic. Although the Australian Dollar and Great Britain Pound are still strong, the Greenback looks like it is pushing through and trying to turn GBPUSD and AUDUSD around. I predict that we will see the final outcome of this confrontation late June 2009 or early July 2009.
Interesting…
Sunday, June 14, 2009
Is it a good week to Buy USD in Forex?
June 15, 2009. The start of a new week in the Forex market. The USD has been dropping and dropping. But last week, it could not drop any further. Looking at GBPUSD and AUDUSD charts, the price could not beat the last resistance and it dropped. And by looking at the USDCAD chart, the trend looked a bit funny with hammers and hangmans forming, indicating a possible reversal. USDSGD and USDCHF are starting to range too.
Checking the news, more articles were mentioning the USD’s comeback, with improving customer sentiment news and bla bla bla.
So should I trade long and buy USD? I will still wait a few days to see where USD pairs are going, before stepping in. Right now I will be focusing more on other pairs like JPY or GBP or EUR. But I strongly suggest against selling USD although the “general” news still dictates a dropping USD.
The Power of Candlesticks
I am currently studying Candlestick charting. Candlesticks are a way to represent the data on investment charts, including commodities, stocks and even Forex. They were invented over 400 years ago but then usage of candlesticks is still not so prominent. Sure, online Forex platforms all have candlesticks embedded in them but then traders usually rely more on their indicators. But Candlesticks can do a lot more than what indicators can do.
The most important reason I will always pay close attention to candlesticks is that candlesticks provide a faster prediction of the future compared to indicators. Let me just give you an example. 2nd week of June 2009. The USDCAD was going straight down, according to my indicators RSI and EMA lines. But all 5 days of USDCAD showed me strange candlestick patterns indicating that there could be a reversal, especially Wednesday and Thursday. So I closed my short position for a loss of about 100 pips, following what the candlestick signals tell me. Sure enough, on Friday, the price shot up a few hundred more pips. If I hadn’t closed the position, I would have lost 4-5 times more!
I have still a long way to go till I master candlesticks, but I will happily take on that journey as it would be worthwhile.
Friday, June 12, 2009
Realtime Forex Charts on Josh Tam Forex
Realtime Forex charts are very important for a lot of traders as they provide market data tick by tick. Realtime charts that update instantly are very valuable especially to traders who are scalpers and they need only a slight movement to profit.
To me, realtime charts are important but not as important as Forex scalpers. But nonetheless, I found an embedable realtime chart and I put it right here on Josh Tam Forex! The chart can be found on the realtime forex charts page. They are even customizable, so you can view data from different timeframes, ranging from 1 minute to 1 month, and that is awesome. And the realtime chart is done using AJAX, not Java or Flash, so any modern web browser should be able to load them fine.
Today, I ended my USDCAD trade with a loss of 100pips because the candlesticks show that USDCAD trend is likely to end, so I decided that it would be better to pay 100 pips than to pay 1000 pips when USDCAD goes up. Canadian Dollars are a bit shaky recently. However, I locked into GBPUSD 600+pips and AUDUSD 130+pips. If they hit the stop loss, then I still win, but I’m hoping that they will ride on.