Tuesday, January 3, 2012
We start the first webinar of the year by introducing traders to the 100 Simple Moving Average & 200 Simple Moving Average lines Both of these moving averages serve to identify good areas of support & resistance, as well as, trade entry & exit points. We also briefly discuss the ATR (Average True Range) & Bolinger Band indicator and how they are used to measure market volatility. However, the best indicator for analyzing volume, momentum, and volatility is in observing current price action, or how price is moving over time. Understanding how price behaves around areas of support & resistance is key to being successful in your currency trading.
Since late Asian Trading Session, we have seen a ~140 pip rally in the EUR/USD pair due to an increase in market risk appetite. The US economic data is showing signs of slow improvement and this is causing equities, and some commodity currencies to rally as well.
Wednesday, January 4, 2012
For most of the trading day,we saw continued downward pressure on the EUR/USD pair and it began in the early London Trading Session, as investors became concerned about potential downgrades in Europe and whether some of the Eurozone countries would be able to rollover their debt maturites, during the first quarter of 2012. In the late Asian Session, we saw price attempt to retest historic resistance at 1.3072. Since we knew that this was a common area of supply, this 3072 resistance would have provided a good opportunity to short the pair for most of the trading day.
In today's video, you will hear a brief review about the price behavior of the EUR/USD currency pair, known areas of historic support & resistance, and good trade opportunities you could have placed during the trading day.