Currency Technical Report - By FX Greece

Currency Technical Report

EUR/USD

Resistance : 1,5740-50/ 1,5780/ 1,5810-20/ 1,5845-50/ 1,5880/ 1,5910
Support : 1,5670/ 1,5630-40/ 1,5595/ 1,5550-60/ 1,5500

Comment : The area of 1,5800-20 could not be breached and a sideways consolidation or a deeper correction seems to be forming for the euro. This move is according to our latest analysis scenario and we wait to see if this move will hold the acceleration or it is the beginning of a downward wave within the sideways consolidation.

First important support is found in the area of 1.5630-50, levels that must not be breached, in order for the move to continue immediately and the formation of a sideways consolidation which will lead to the area of 1,5880-00 or even 1,6000.

Below 1.5630, our next targets are in the area of 1.5550-60 and 1.5480-00, in the ranges of a complete reversal of the upward trend, which has been formed after 1.5285 lows.

If 1.5630-50 holds, a correction is possible and it will indicate that the move below 1.5800 is part of a sideways consolidation that will lead to higher targets.

First intraday resistance emerges in the area of 1.5740-50, followed by the area of 1.5800-20. Above 1.5820, next targets will be at 1.5890-5910, while the possibility of move resumption to the previous tops of 1.6000-20 will be examined.

The most possible scenario would be a move between the area of 1.5800-20 and the support at 1.5630-50...

TRADING EUR/USD : Our scenario remains the same as in our last analysis. We keep our posi-tions small and buy positions could be tested at 1.5670-80 retracements only if we intend to buy again in the area of 1.5630-40, with stops below 1.5600. If 1.5800-20 is reached, sell positions will be attempted with stops above 1.5835. A clear break of 1.5820 will be followed with buy positions until the area of 1.5900, levels where bears should appear...

GBP/USD

Resistance : 1,9750/ 1,9780/ 1,9810/ 1,9850/ 1,9880
Support : 1,9730/ 1,9700/ 1,9665/ 1,9625/ 1,9590

Comment : The area of 1.9830-50 was the higher level, that the pound managed to reach and now it seems that a consolidation is being formed. The ranges of this move seem to be between 1.9700 and 1.9850 and the move should be limited between these ranges.

Above 1.9850 area, targets are in the area of 1.9910-30, levels of important resistance. The accele-ration should be limited to 1.9990-2.0010 area...

Below 1.9700, next targets will be in the area of 1.9600-30, levels where the upward trend that is formed from 1.9350 lows, could be reversed...

TRADING GBP/USD : We keep our positions small and try positions in the ranges of the for-mation (1.9700 and 1.9850). Next level for buy positions is the area of 1.9630 and 1.9600 (stops below 1.9580) and for sell positions in the area of 1,9900 and 1,9940 (stops above 1,9965)...

USD/JPY

USD/CHF

FX Greece

DISCLAIMER

  1. The details and information included in the above analysis, are part of research based exclusively on currency charts and are of purely instructional and educational nature. None of the information featuring in the analysis can be considered as an invitation for opening positions in FOREX market or in the market of forward contracts or any securities listed on an organized or unorganized market.
  2. We assume no responsibility for any kind of losses ,profits or property loss resulting, in whole or in part, from acts that are based either directly or indirectly on the processing or the use of information, details and strategies, the reader may find in the analysis. The readers hold full responsibility for the use and the results of their actions.
  3. The recipients of the analysis must acknowledge and accept that investment choices of any kind, especially concerning the FOREX market, contain risks (high, low and occasionally zero) of reduction or even loss of their investment. Therefore, they should always be cautious prior to any kind of action.
  4. We reserve the right to change the terms and the characteristics of the analysis.
  5. The contents of the analysis are solely intended for personal use. They may not be retransmitted, reproduced, distributed, published, adapted, modified or assigned to third parties in any way whatsoever. Anyone having access to them is required to comply with the law provisions on the protection of third party intellectual property rights.

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FOREX : Foreign Exchange Market

FOREX is a word play on the term Foreign Exchange Market. It is a market for buying and selling of currencies from all over the world. Certainly, such transactions are bound to be voluminous. It is just an estimate that there are about transactions of $1.5 trillion USD on a daily basis in the FOREX. Now just compare this with the paltry $300 billion USD a day transactions for the US Treasury Bond and the $100 billion a day transactions for the US Stock Exchange.

The FOREX came into existence in 1971 when the fixed currency exchanges were abolished. Currencies no longer had fixed values after that; on the contrary, their rates (mostly taken in comparison with the USD) were fluctuating, and changed on a daily basis. Throughout the seventies and the eighties the FOREX grew steadily, showing more advancement in the later years. The market has stupendously grown from $70 billion USD a day to the staggering amount that it transacts today on a daily basis.

There are actually about five thousand trading institutions in the FOREX. These include international banks, central government banks such as the US Federal Reserve, and commercial companies and brokers for all types of foreign currency exchange. The best thing that shows the unbiased nature of the FOREX market is that it has no fixed headquarters anywhere – it operates primarily from all major cities like New York, Tokyo, London, Hong Kong, Singapore, Paris, Frankfurt, etc. One can even use the telephone or the internet to make the transactions. The major businesses at the FOREX are the buying and selling of products in other countries. Several transactions are also conducted from the currency brokers or traders who stand to make small profits with the daily fluctuations in the market.

Most of the FOREX business is centered on big banks and financial institutions, but it doesn’t mean that the FOREX is inaccessible to small investors. The recent changes in the financial regulations have effectuated this accessibility. Earlier, a minimum transaction size was required to conduct business with the FOREX. But the current rules have made it possible to break large inter-bank units into smaller bits. Each bit is worth as less as $100,000. This makes it possible to each individual investor through loans that are extended for trading, known as leverage. The ratio to control the lots is 100:1. This means, every $1000 USD will allow one to control $100,000 on the FOREX.

The benefits of trading with the FOREX are mentioned below:-

(1) Liquidity of Investments – As the FOREX is a huge market, the funds have a very high degree of liquidity. This is because of the presence of the international banks who provide their bids and carry out a large number of transactions on a daily basis. Therefore, there is always a buyer or seller for any type of currency.

(2) Highest Degree of Accessibility – The FOREX is open 24 hours a day for 5 days a week. Every Monday morning the exchange opens at Australian Standard Time and closes on Friday afternoon at New York time. Greater accessibility is provided because the transactions can be conducted from the person’s home or office.

(3) Open Market – At the FOREX, there are no secrets. All the fluctuations that occur in the market are made accessible to everyone at the same time. There is no insider trading in the FOREX.

(4) No Commission – There is no hassle of paying commission to the brokers in the FOREX. Here the brokers earn by setting up a difference between the buying price and the selling price of a currency, which is known as a spread.

It must be understood by now that for the FOREX to work effectively, the currencies must always be traded in pairs. For instance, the Japanese yen must be traded against the euro. When one kind of currency is sold, there should be another to be bought in its stead.

The profit happens because there is always mobility between the different currencies. Even if there is a miniscule change in the exchange rate, then it could mean substantial changes in the profits due to the large amount of money involved in the transactions. People are thronging to the FOREX and not any other institution due to the trust that they have in it. To add to the advantage, the market is absolutely well-advanced and uses sophisticated software for dealing out its transactions.

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