Wednesday, July 11, 2012
We had an interesting trading session as the market shifted from risk appetite during the Asian & European trading session to risk averse during most of the US session. Today's trend was primarily bearish with euro weakness driving most of the market movement, in both equities, commodities & other asset classes. We saw the EUR/USD currency pair fall 84 pips from the session high at 1.2297 to session low at 1.2213, which formed a new low for the year.
In today's technical analysis video, we will briefly explain the price action in the EUR/USD pair and identify common areas of support & resistance for potential trade entries.
Tuesday, July 10, 2012
We started today's webinar by discussing the summer malaise period and how traders should position themselves within the currency market. In this type of trading environment, volumes are usually low and you may have to adjust your trading plan to account for the erractic price behavior and whipsaw activity normally seen during this time of the year. For the past two days, the Eurogroup Finance Ministers have been meeting in Brussels to discuss further details surrounding the Spanish Bank Bailout and plans for EU Fiscal Consolidation. All of the Eurozone countries have agreed to offer Spain their first batch of support of over EUR30 billion through the EFSF temporary bailout mechanism, and later through the ESM, for direct recapitalization of the Spanish Banks. Finance Ministers have also agreed to give Spain one extra year to get their budget deficit on target below 3%.
In this webinar, we described the usage of the rsi indicator, slow stochastic indicator, and fibonacci retracement tool as a means to identify possible trade entries after corrective waves or consolidation in the market. Sometimes, it is better for an intraday trader to sell into weakness and buy into strength, rather than following the conventional view of the buy low/sell high principle. In addition to this, we also described ways to identify price reversal patterns on your chart that could signal the beginning of a trend reversal or a deeper retracement in price.
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and we also place a few live trades using the Slumdog Forex trading system.