US Dollar Preparing to Fight Back

What’s new on the FX markets? What is the current US Dollar direction? The US Dollar index is a good synthesis and gives a pretty good snapshot of the current trends.

Let’s take the daily chart. The index has just reached a key level. This level is a support line around 78.5 and is the last Fibonacci retracement ratio (the 61.8%) of the rise occurred between points A and B on the chart. Point A is the inflection point where the Greenback started bouncing firmly last year at mid-July. From this low of 72.11, the index rebounded to a high of 89.71, posted in last March (point B). This 24% uptrend was backed by an ascending support line (green line) that was eventually cleared in late April this year.

Tomorrow at 1400EDT/1800GMT, the Fed will release its Beige Book summary of US economic developments ahead of the August 12 FOMC meeting. We think the overall tone of the report is likely to further undermine short-term sentiment, given the rather meager improvements in recent data and the overhang of weak longer-term components, such as unemployment and consumer spending (see Research Analysis below). We think the Beige Book will lead to further selling of so-called risky assets (e.g. stocks, commodities, and the JPY-crosses, such as EUR/JPY, AUD/JPY, etc.). However, weaker than expected US July consumer confidence released on Tuesday has already seen a significant unwinding of long risk trades, especially in the JPY-crosses. The drop in the JPY-crosses comes against the backdrop of overweight ‘long-risk’ positioning (i.e. long JPY-crosses), so we think the downside shake-out has more room to run. On the technical front, EUR/JPY

Fundamental Forecast for Japanese Yen: Neutral

Direction from the Japanese yen is often the product of risk appetite; and the fundamental outlook for next week doesn’t suggest this essential correlation will break any time soon. However, this connection may actually complicate the future for speculators rather than make it more straightforward. The primary source of what has essentially been a market-wide advance in risk appetite these past two weeks seems to have petered out. Earnings releases are in decline and there are very few individual releases on the docket that can initiate a global shift in sentiment on its own. Among other potential catalysts – like growth speculation – there are many contingencies and shades of gray that could make the yen a very difficult currency to trade going forward.

First and foremost, the market will have to reconcile its predilection for earnings data. Ever since Goldman Sachs

The Forex Markets: A Rare Glimpse Into The World of Forex Trading

By Dr. Scott Brown, Education Director of Investment U

There’s a lot of interest in the Forex markets right now.

But a big problem is that it’s nearly impossible for you to get direct advice from veteran Forex traders since they rarely give interviews and most earn so much they don’t care to teach anyone else.

They move vast sums of money and barely have time to train new MBA graduates - who may or may not succeed - let alone talk to novices trying a go of it over the Internet.

Yet despite the closed culture - the inter-bank foreign exchange market is a very small, tight-knit and elite group of top financial professionals - the Internet has opened these markets to the public for small and average investors.

Veteran inter-bank foreign exchange trader Thomas Fischer, MBA has granted us a

At MarketClub.com, we cover the Forex markets with real-time streaming data, but trader’s blog members often ask which is better: Day Trading or End of Day Trading the Forex markets. To help answer that question and answer ANY other Forex questions you might have is Bill Poulos. Bill’s developed an amazing Forex Income Engine 2.0 course (goes live at 10am today), and has decided to give us one more post and clear his schedule to answer any and ALL questions you might have for him! Please comment below with your own thoughts on which is better for Forex trading and your own personal experiences!

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Forex traders often ask: “Is it better to trade the Forex markets on an end of day basis (with daily charts) or a day trading basis (with 5, 10, 30, etc minute charts)?”

There is no right answer to this question, as I believe it depends

Forex Trading: An Interview With Forex Market Expert Thomas Fischer, Part 1

by Dr. Scott Brown, Education Director of Investment U

Forex trading is hot, hot, hot right now. And one of the biggest reasons why is that traders are using leverage to amplify returns by 200 times - where $1 controls $200 worth of foreign currency. The returns can be staggering.

For example, on the British “Black Wednesday” of September 16, 1992, George Soros made a single day’s forex profit of $1 billion by short selling the Great Britain Pound Sterling.

At the time, these kinds of profits were only available to large players.

But recently, a major change in the way forex trading is done has opened the trading desks to the little guy. The Internet has opened the door to the small investor into this $3.98 trillion daily market.

But forex, or foreign exchange trading, has a reputation as

If you didn’t make money this month then you weren’t watching our Trade Triangles.

See how we did in three major markets (my new video).

CURRENCIES May has been quite a month, especially for the British Pound (GBP). In an earlier video, I alerted everyone of the potential upward move. The market ended up moving right in line with my expectations and is showing some excellent profits. One currency contract at the CME is showing a profit of over $8,000, a stunning return of over 216% over initial margin*.

ETF I also alerted you to a move in crude using the ETF USO which closely tracks the crude oil market. This market has gone up over 8% since MarketClub issued the first signal on May 6th at 32.16 using our Trade Triangle technology.

PRECIOUS METAL Gold has also

In the world of Forex trading, volatility equals big profits. Forex, (which is shorthand for Foreign Exchange) is the largest market in the world. With 3 Trillion dollars in money exchanging hands every day, a trader only has to catch a tiny percentage of that to parlay a small nest egg into significant profits.

And there are significant advantages which trading Forex, or FX, for short, can offer.  One is that there are no “commissions” as you generally think of with stock trading.  The broker is paid by means of the “spread” between the bid and ask prices.  This is really nice, because if you want to get started in FX trading, and you want to start small (which is an excellent idea), all you have to cover is the spread, rather than a spread and a commission.

Here’s how it works….

Because of the various opportunities for leverage and margin in the

by John Eather

Whenever you’re in the marketplace to get some forex software, discerning the most proper forex trading program is extremely important. Since there are such numerous forex trading companies trying to get your business, it’s a gruelling task to decide on the most efficient forex trading program.

Almost all of the forex software products on the market give you access to platforms for trading forex in real-time. Consequently, you’d better think about further factors that allow for certain forex software to stand out from others.

Before purchasing any forex software, you will have to make sure that the software has some very important features. Security is the most essential feature, hence online forex trading software ought to have 128 bit SSL encryption. This guarantees that hackers are unable to get at your crucial personal and financial information, eg. account balances and transaction history.

The best forex software should also be …

We haven’t looked at the British Pound (GBP) lately, as it has been in its major swing to the downside. The question is, is the British pound ready for a comeback?

In our new video, I delve into the depths of the British Pound, and take you step-by-step into my thought process and why we’re looking at this market right now.

Whether you’re a newbie or experienced trader, I believe you will benefit from this video. In the video we give you specific levels that I’m watching, and target levels that we expect the British Pound could achieve if it breaks over one key psychological level.

As always this video is with our compliments and there is no need to register to watch.

Enjoy and feel free to comment on our blog.

Enjoy the video.