Forex-90

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

3/10/2010 – AUD/USD – Though technically still entrenched within a sideways consolidation, AUD/USD (a daily chart of which is shown) has displayed a marked bullishness since the early February low. This bullishness has prompted the pair to rise above several key resistance levels to the point where the 15-month high just above 0.9400 is not far off. During the course of the bullish move from the February low, price has formed a well-defined uptrend support line. Currently, AUD/USD has just established a new 7-week high and appears poised to move yet higher. With a potential upside resistance target in the noted 0.9400 price region, in the event of a bearish breakdown below the current uptrend support line, further downside support resides around the 0.8800 price region.

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

3/11/2010 – GOLD – Recent bearish price action on spot gold, a daily chart of which is shown, has prompted a correction back down to the long-term uptrend support line. This bearish correction occurs right after price reached a high of around 1145 just last week. As of Thursday (3/11/2010) morning New York session, price is hovering right around the key trendline. In the event of continued bearish momentum that breaks down below this trendline (currently around the 1100 price region), price could target further downside support around the 1070 price region, potentially placing the current long-term uptrend at considerable risk. In the event of any substantial upside bounce off the trendline, a major upside price target within the context of a potentially continuing uptrend resides around the noted 1145 high, and then the 1160 price region.

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.

Price action on USD/CHF, a daily chart of which is shown, has consolidated in a tight, slightly bearish consolidation right underneath a key long-term downtrend resistance line extending from the 2008/09/10 high hit in November 2008. Since recently hitting this trendline in mid-February, price has bumped up against it several more times without breaking the dynamic resistance imposed by the line. Currently, since the lows around parity (1.0000) in early December, this pair has been entrenched in a medium-term uptrend. For more technical analysis on this currency pair,

Price action on GBP/USD, a daily chart of which is shown, has made a bullish correction since the beginning of March after having dipped well below the key 1.5000 psychological level on March 1st. This bullish correction exists within the context of a steep accelerated downtrend in the pair. After having corrected up to approach the 1.5200 price region, the directional bias continues to be bearish in line with the strong current downtrend. For more technical analysis on this currency pair,

Bearish price action on GBP/USD, a daily chart of which is shown, has broken below key support in the 1.5350 price region to establish a new 9-month low and, in the process, tentatively dropped below the bottom border of a parallel downtrend channel that has been in place since the November highs. Currently, the bearishness has approached a key 161.8% Fibonacci extension (of the prior bearish run from 11/16/2009 to 12/30/2009) which resides just above the 1.5200 price region. For more technical analysis on this currency pair,

Price action on USD/JPY, a daily chart of which is shown, has taken a decidedly bearish turn after having reached and respected last week the top border of a key parallel downtrend channel extending from the April high. The high that was reached on last week’s turn was just above the 92.00 price region. In the process of making this bearish turn within the context of the overall downtrend, price action has made a tentative breakdown below a short-term uptrend line extending from the early February low. For more technical analysis on this currency pair,

Price action on EUR/JPY, a daily chart of which is shown, has been entrenched in a relatively strong downtrend since the mid-January highs. In the process of this downtrend, several key support levels have been broken down, including key levels around the 127.00 and 125.00 price regions. After breaking swiftly and strongly below the 125.00 area in early February, price action toyed with the 122.00 support/resistance region before consolidating in a bullish retracement that has taken the form of a short-term, flag-like parallel uptrend channel. For more technical analysis on this currency pair,

Recent bullish price action since mid-January on USD/CHF, a daily chart of which is shown, has brought price up to hit a key long-term downtrend resistance line extending from the November 2008 high. When the pair reached up to hit that significant trendline this past Friday, price momentum failed in its bullishness and tentatively retreated. From a trend perspective, the pair may well be in a new overall uptrend after the bounce off parity (1.0000 price region) in early December. For more technical analysis on this currency pair,

Recent bullish price action on USD/JPY, a daily chart of which is shown, has risen to approach dynamic resistance around the top border of a parallel downtrend channel that has been in place since the April 2009 high. In the process, the pair has established a new 5-week high. In the event that the bullish momentum continues on to break out above the downtrend channel, which would jeopardize the current overall downtrend, a key resistance target to the upside resides around the 93.75 price region. For more technical analysis on this currency pair,

Price action on GBP/USD, a daily chart of which is shown, has tentatively broken down below an inverted flag pattern consolidation within the context of an overall parallel downtrend channel that has been in place since the mid-November highs. This tentative flag break hints at continued potential bearishness in the pair in line with the prevailing downtrend. For more technical analysis on this currency pair,

I’m currently at the New York Traders Expo and will be speaking at 3:45 PM (Monday, Feb. 15) in the Ziegfeld Room, Marriott Marquis Hotel, Times Square, NYC. The seminar will be on forex trend trading strategy. My seminar was a late insertion into the program so it did not make it into the printed schedule in time. If you’re in town, hope to see you there!

What is Forex? Forex is an abbreviation of Foreign Exchange (also referred to as FX) and it is the largest financial market in the world.

The Forex market is the place where currencies are traded (currencies are money that is used as an exchange medium). In other words, it is the place where currencies are being sold and bought. In the Forex market all currencies are traded in real time.

Trading with currencies always means that there are two simultaneous transactions taking place. If a currency is being bought, it is also being sold. To better understand this notion, think of currencies as both the goods you are buying AND the method with which you're paying for the goods.

Since the Forex market is the place where currencies are traded in real time, people may trade one currency for another and make a profit off of this transaction. Profits are made when one is able to determine which currency's value will increase by the end of a pre-determined time period (such time periods may be short or long). The Forex market is open 24 hours a day, five days a week and it is based in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.

While Forex trading may sound daunting, it really isn't. It can be easily comprehended and understood without prior experience in finance or economy. It is challenging and exciting, thought provoking and manageable, stimulating and filled with opportunities.

Some Forex Basics:

• The first currency listed in a currency pair is called the "base currency".
• The "base currency" is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the "counter currency".
• Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
• When a quote increases, it means that the "base currency" has risen in value and the "counter currency" has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)

If you want to trade successfully there are some rules you need to follow. For example picking a good trade and avoiding the bad ones. A bad choice carries big losses since they are detrimental to your self-confidence. You need to make a lot of decisions during your trading day. Without systematic discipline emotional impulses will ruin your trading skills since you will be choosing the wrong tools in wrong time.
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Many short-term traders take trading as some sort of gambling. Without planning and discipline they are throwing out their money to the market. Some of them may make one or two accidental winning trades that only confirm this gambling attitude that will lead them to total collapse. Without discipline and money management these people quickly become victims of market.

Technical analysis teach trader to follow the rules based on numbers and timing. It helps to develop discipline that allows a trader to distance form his gambling attitude. Through consistent trade execution and right money management system trader begins working in market and stops gambling.

Market repeats the same patterns many times. The science of trend following helps you to build your system rules based on those repeated patterns and avoid chasing the shadows of profit.

The following golden rules will help you to avoid many mistakes in your trading and make it more consistently profitable.
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1. Forget the news watch the charts. If you are not very confident in your experience of defining how the news will affect price movement watch the charts. They have already incorporated all the news in themselves.

2. If trend is up buy at the first retracement form the new maximum. If trend is down sell at the first retracement form the new price minimum. There is always an opportunity.

3. Buy as close to the support level and sell as close to the resistance level as possible. Everyone sees the same levels and waiting for the opportunity to take a trade at those lines.

4. Short rallies are not sell offs. When price retraces sellers take profit and market is ready to continue its major trend.

5. Do not buy below the main moving average and do not sell above the main moving average.

6. Do not chaise the move if you don't know where you will be exiting. Let's say you entered the market and it reversed you need to know exactly where are you going to exit to cut your losses.

7. Trends test the previous support and resistance levels. You can enter the market at those levels even if they are breached a little.

8. Always trade along the trend. Do not be a hero. Go along the trend.

9. Price has a memory. Whatever it did the last time it will probably do again at the same level.

10. Trends rarely reverse abruptly. First sell off always find its buyers. Look for consolidation patterns

Average Daily Ranges*
for use during the trading week of
February 15 to 19, 2010

	EUR/USD	GBP/USD	USD/CHF	USD/JPY	USD/CAD
Upper BB	218	229	170	198	171
Avg. Daily Range	133	164	104	100	111
	AUD/USD	NZD/USD	EUR/CHF	GBP/CHF	EUR/GBP
Upper BB	197	177	161	248	116
Avg. Daily Range	133	110	61	159	76
	AUD/JPY	CAD/JPY	EUR/JPY	GBP/JPY	NZD/JPY
Upper BB	312	276	370	427	253
Avg. Daily Range	166	145	187	227	135

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Price action on EUR/USD, a daily chart of which is shown, has continued its steeply-angled bearish trend after making yet another bullish correction/consolidation earlier in the week. This minor bullish correction, in the rough form of yet another inverted flag pattern, was halted just above key resistance in the 1.3800 price region. The current bearish trend continuation has established yet another new 8-month low in the pair after having broken down below the low of the prior week. For more technical analysis on this currency pair,

Price action on USD/CHF, a daily chart of which is shown, has been following a steep uptrend support line since the mid-January lows. Within this steep uptrend, the bearish corrections have been relatively shallow while the bullish trend moves have been relatively strong. Currently, price is in the process of recovering from a bearish correction, and appears poised to reach for a new 6-month high if the last high around 1.0817 is surpassed. For more technical analysis on this currency pair,

Price action on EUR/JPY, a daily chart of which is shown, has reached down and made a tentative bounce off key support in the general 122.00 price region. This occurs after the currency pair broke a long sideways consolidation by breaking down below another key support level in the 127.00 price region. The substantial recent bearishness in the pair established a new 11-month low late last week before making the current tentative bounce. Despite the bounce, price action is currently following a very steep medium-term downtrend extending from the mid-January highs. For more technical analysis on this currency pair,

Price action on GBP/USD, a daily chart of which is shown, has finally begun to show a bearish emergence from the sideways consolidation that has characterized this currency pair on a long-term basis for several months now. A clean breakdown below the 1.5700 support region last Friday represented a tentative breakdown below the consolidation, in line with a medium-term downtrend that has been in place since mid-November 2009. In the process of this breakdown last Friday, the pair has established a new 8-month low near the bottom of the noted medium-term parallel downtrend channel. For more technical analysis on this currency pair,

Price action on EUR/USD, a daily chart of which is shown, has displayed continued marked bearishness recently, strongly confirming a new downtrend in the pair. This new downtrend was initiated after the previous long-term uptrend was broken decisively to the downside in early December. After that breakdown, the bearish trend has been characterized by several short-term bullish retracements and consolidations in the form of inverted flag patterns, but each time these trend interruptions were broken strongly to the downside. For more technical analysis on this currency pair,

Price action on AUD/USD, a daily chart of which is shown, continues to languish in a sideways consolidation, although the last couple of weeks have been decidedly bearish for the pair. After price reached strong resistance around 0.9325 in mid-January (just shy of the 15-month high around 0.9400 that was hit in mid-November 2009), the directional bias has been steeply bearish, forming a well-defined short-term downtrend resistance line. For more technical analysis on this currency pair,

Price action on EUR/USD, a 4-hour chart of which is shown, has made yet another bullish retracement within the context of the new overall downtrend. The current leg of this new downtrend extends from the January 13th high, and has formed a valid bearish resistance trendline. Within the context of this downtrend resistance line, price has made several breakdowns of both short-term uptrend support lines and horizontal support levels. As might be expected, these breakdowns have continued the dominant downtrend with significant downside follow-through. If the current leg of the prevailing downtrend is to continue, a key continuation trigger would be a breakdown below the current short-term uptrend support line. For more technical analysis on this currency pair,

Price action on AUD/USD, a daily chart of which is shown, continues to languish in a sideways consolidation, although the last couple of weeks have been decidedly bearish for the pair. After price reached strong resistance around 0.9325 in mid-January (just shy of the 15-month high around 0.9400 that was hit in mid-November 2009), the directional bias has been steeply bearish, forming a well-defined short-term downtrend resistance line. For more technical analysis on this currency pair,

Price action on EUR/USD, a daily chart of which is shown, has displayed continued marked bearishness recently, strongly confirming a new downtrend in the pair. This new downtrend was initiated after the previous long-term uptrend was broken decisively to the downside in early December. After that breakdown, the bearish trend has been characterized by several short-term bullish retracements and consolidations in the form of inverted flag patterns, but each time these trend interruptions were broken strongly to the downside. For more technical analysis on this currency pair,

Price action on EUR/JPY, a daily chart of which is shown, has reached down and made a tentative bounce off key support in the general 122.00 price region. This occurs after the currency pair broke a long sideways consolidation by breaking down below another key support level in the 127.00 price region. The substantial recent bearishness in the pair established a new 11-month low late last week before making the current tentative bounce. Despite the bounce, price action is currently following a very steep medium-term downtrend extending from the mid-January highs. For more technical analysis on this currency pair,

Price action on USD/CHF, a daily chart of which is shown, has been following a steep uptrend support line since the mid-January lows. Within this steep uptrend, the bearish corrections have been relatively shallow while the bullish trend moves have been relatively strong. Currently, price is in the process of recovering from a bearish correction, and appears poised to reach for a new 6-month high if the last high around 1.0817 is surpassed. For more technical analysis on this currency pair,

Price action on GBP/USD, a daily chart of which is shown, has finally begun to show a bearish emergence from the sideways consolidation that has characterized this currency pair on a long-term basis for several months now. A clean breakdown below the 1.5700 support region last Friday represented a tentative breakdown below the consolidation, in line with a medium-term downtrend that has been in place since mid-November 2009. In the process of this breakdown last Friday, the pair has established a new 8-month low near the bottom of the noted medium-term parallel downtrend channel. For more technical analysis on this currency pair,

Price action on EUR/JPY, a daily chart of which is shown, has reached down and made a tentative bounce off key support in the general 122.00 price region. This occurs after the currency pair broke a long sideways consolidation by breaking down below another key support level in the 127.00 price region. The substantial recent bearishness in the pair established a new 11-month low late last week before making the current tentative bounce. Despite the bounce, price action is currently following a very steep medium-term downtrend extending from the mid-January highs. For more technical analysis on this currency pair,

Oil may be headed back to $60 /b in 2010

OPEC latest forecast predicts that energy demand in 2010 will increase by 800,000 b/d. This is 70,000 barrels a day stronger than the forecast made by OPEC in November. We believe this news only lends modest support to what still is a weak fundamental position for oil. The fact that the USD is showing signs of a cyclical recovery also suggests that oil prices could be pressured lower in 2010.

Inventories in developed countries have been above the seasonal average for many months. Despite persistently high levels of inventories, oil rallied this year between February and late October in tune with the general upswing in risk appetite. We feel the rise in prices was out of step with the ample supply and suggests that optimism, with respect to the strength of the global recovery, is likely overstated by the price even in consideration of OPEC's latest upwards revision in demand. Unemployment in the US has risen to above 15 mln, this is more than double the 7.4 mln registered in the spring of 2008 while oil prices were only around 30% softer than they were in April 2008. As in many other countries, US unemployment is likely to rise further before recovering. Growth returned to the US in Q3 2009. However, this would have been almost non-existent if it were not for the government's fiscal support. In 2009, the US will be one of just a handful of countries in the G40 to suffer a double digit budget deficit/GDP ratio. Fiscal expenditure will have to be reined back not just in the US, but in the UK and in many Eurozone countries in the New Year. The combination of very high unemployment and the reined back of fiscal incentives is consistent with our view that growth in the US, Eurozone and the UK will remain below trend at least through 2010 and that prospects for a recovery in energy demand by OECD countries in general are low.

The USD index has strengthened by around 5% during December 2009. This coincides with a modest increase in expectations about Fed policy tightening but we believe it is also a response to a generous credit facility by the BoJ and a reaction to bad news related to budget deficits and creditworthiness in the EMU region. We feel there is still a huge amount of political will in the Eurozone and in Japan in favour of a stronger USD which is likely to affect policy decision of both the BoJ and the ECB during 2010 and beyond. It is possible that the USD index will steer away from its recent lows in the coming months 2010 and this should cap upside potential of oil prices and other USD denominated commodities and least through the early stages of 2010. Later in 2010, the likelihood that the Fed will precede the ECB and certainly the BoJ on the issue of interest rate hikes could reinforce the better tone of the USD index.

We think the prospect of a slow recovery in oil demand from OECD nations in 2010 and the prospect that the USD may have begun a cyclical recovery vs. the JPY and the EUR should cap the upside potential of oil prices into 2010 and opens the potential for a downwards correction back towards the USD60 /b.

Silver May Have Another Bright Year in 2010

We think silver is uniquely positioned to continue its stellar rally in 2010. Valuations compared to gold remain extremely attractive, demand from the investment community is robust and the metal's industrial demand will rise as the global economy recovers. Our base case is that silver has potential to trade well above $20 in the year ahead.

Silver has markedly outperformed gold over the last year, turning in a stellar 53% year/year return through December compared to a 30% gain in the yellow metal. We do not expect this to change in 2010 and look for the value of silver relative to gold to continue to track higher. Gold is currently valued at 65 times that of silver. Next year we expect this ratio to revert back to levels that dominated between the better part of 2006-2008. In other words, a gold to silver ratio of about 50. Taking our expected range for gold into account, at $1050/1250, this would mean silver returning to a zone closer to $21/25.

The speculative position in silver is a net long 43,000 contracts as per December 11, a -20% decline from the nearby October highs. Thus unlike gold, silver is not at an extremely overbought level at the moment. And while gold has clearly staked out new all-time highs, silver remains well below its post-1980 record of $21.34 set back in 2008.

The industrial application of silver relative to gold is another factor that will lead to an outperformance of the former in the year-ahead. The latest data available show that 54% of total silver fabrication goes to industrial applications. The amount used for coin and metal production is a mere 8%. As such, even a flight away from silver as a safe haven asset would not necessarily dent prospects for higher prices. With the global economy conservatively expected to expand 3.1% in 2010 (IMF projections) and most of that growth coming from developing nations, silver is in a unique position to prosper.

The growing middle class in the developing world will have a budding appetite for things where silver is a critical component, with little possible substitutes. Most notable is silver's use in the electronics space. Including but not limited to silver membrane switches (used in buttons on televisions, telephones, appliances), printed circuit boards (used in phones, computers), and plasma display panels (computers, televisions). Thus it should not surprise anyone that silver and the S&P 500 Technology sector both enjoyed 50% gains in 2009 (compared to 22% for the overall market). Should the tech sector revisit even the recent 2007 highs, this should put silver prices comfortably back above the $20 zone.

To any view, there are of course downside risks. Thus we will provide some technical levels to keep in mind as 2010 kicks off. For support, we are focusing on a daily up-trendline and the 100-day moving average which converge in the $16.60/50 area as of this writing. A daily close below this zone would open up potential towards $15 on the follow. The upside is likely to be challenged first and foremost at the $18 level, which looks like a very good pivot on the daily charts (multiple highs/lows around there). Daily trendline resistance then comes in near $19.50 and above there would target the $21.34 high back to March 2008.

Gold May Lose Its Luster in 2010

Summary Outlook: Gold prices surged higher in 2009 as part of broad commodity rally and USD decline, culminating in a classic parabolic advance in October/November, followed by a 10+% collapse in December. Given ongoing concerns over sovereign and corporate debt burdens globally, we think gold prices are most likely to remain relatively elevated, and we do not expect gold prices to see much below the $850/900/oz. level. By the same token, we anticipate an extremely benign inflation environment in 2010 together with a broadly stable, though relatively weak, USD, which should work to limit gold's upside to the $1200/1250 zone.

Economic Analysis: The traditional drivers of gold prices are inflation, inflation expectations and the perceived value of the USD and other fiat currencies. Gold is also frequently viewed as a safe haven refuge in times of financial market turmoil, though that effect failed to materialize during the worst of the 2008 upheaval, but was apparent during the 1Q 2009 market relapse. Overall, on inflation we think a weak global recovery, undercut by consumer deleveraging and high and rising unemployment across most of the G-10, will restrain inflationary pressures throughout 2010. In the US, the December Univ. of Michigan consumer sentiment survey foresaw a 2.1% inflation rate over the next 12 months and a 2.6% inflation rate over the next five years. European and UK inflation forecasts are similarly benign while Japan has recently slipped back into deflation. Only in the event of an unexpectedly stronger global recovery would inflationary pressures come into play.

Fiscal and credit concerns are likely to be the most supportive factors for gold prices, but even here, we expect them to be less of a factor as 2010 wears on. In the second half of 2009, speculators focused on the high level of deficits and overall debt in major economies and began to question the inherent value of major currencies and gold appreciated steadily. However, recent events (credit rating downgrades to Greece, the Dubai debt standstill and the nationalization of a regional Austrian bank) coincided with a sharp drop in the price of gold. Rather than propelling gold to further heights, increased risk aversion had the opposite effect on gold, suggesting speculative forces were primarily behind the run-up in the yellow metal. Indeed, according to the COTR for Dec. 15, 2009, speculative gold net longs were only slightly below all-time highs of 262,000 contracts, despite a nearly 10% decline in price. As stimulus efforts wind down in early 2010 and governments move to more fiscally sustainable policies into the end of the 2010 and into 2011, the appeal of gold as an alternative to currencies will continue to diminish. As well, global central banks will move to withdraw extraordinary accommodation and eventually tighten lending rates later in the year, raising the relative cost of carry of gold vs. currencies (it costs to own gold, while FX investors can earn once rates begin to rise, eliminating gold's free ride vs. zero interest rate currencies.) As such, we think gold supportive factors will fade into the second half of the year, and so we would bias the risk to greater downside potential for gold prices.

In terms of supply and demand, high nominal gold prices continue to see scrap gold add to overall supply, in addition to mines and refineries working in overdrive. Conversely, demand for jewelry remains under pressure due to high relative prices and restrained consumer spending. Demand is still strong among speculative and physical investors, but the risks here are biased lower should the global economic recovery prove more resilient than expected. Finally, near-record high speculative long gold positioning also biases the risks to the downside, as there has been only minimal reduction in the face of an 11.4% price retreat in December, leaving open the potential for a larger position exodus.



Technical Analysis: Gold made a significant medium term high in early December just above $1225/oz and has since retreated over 10% from that high. Immediate resistance is in the 1125/30 area, followed by 1150. Initial support comes in at 1070/73 October market highs, which coincides with the base of the Ichimoku cloud at 1067 (but rises sharply in coming weeks). Below 1065/70 exposes the 1020/25 September highs, and then the 1000 psychological support level , which sees the 200-day sma just below at 988 currently. We think there is further downside corrective potential to the 1020/25 area early in 2010 as overstretched longs exit. From that level, we would look for some consolidation and perhaps for a new base to build, but we would not hold longs should price drop below the 975/980, as that would suggest a further decline to the lower end of our expected range at 850/900.

Price action on the majors as of Thursday (4/16/2009) morning, as shown on the accompanying EUR/USD daily chart, continues to consolidate in a relatively tight range. On EUR/USD, this consolidation is taking place just below a long-term downtrend resistance line extending from the second test of 1.6 back in July. The lower border of the consolidation appears to be around the 1.3100 support region. Any significant breakdown below 1.3100 should quickly meet further support around 1.3000. And any breakdown below this latter level would be a substantially bearish indication that could target March lows. To the upside, the noted long-term downtrend resistance line should continue to provide strong dynamic resistance for the pair.

UPDATE: As of Friday (4/17/2009) afternoon, price action has descended all the way down to approach the 1.3000 support level mentioned above. Price is continuing to experience significant bearishness. Any true breakdown below 1.3000 should signal continued substantial bearishness in the pair going forward.

List of most popular currencies on the Forex market

Forex used to be a closed market because only the “big boys” because you needed between 10 and 50 million $ to open an account. But today, with the development of internet, online Forex brokers have the possibility to offer their services to “little” traders. All you need to start is a computer, fast internet connection and information which you can find on this page also.

This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous waters but at the same time it is the only one where two weeks of trading can hypothetically bring you $1,000,000 out of $1,000 of initial investment.

This is certainly hypothetically because a lot of newbie traders deal with their trades as gambling, that surely bring them to having nothing in the end. You should always keep the phrase "be careful!" in your mind. This market would give you its profit possibilities only if you learn the basic things hard and make lots of demo trading.

The statistics is that as much as 95% of traders come to losing their money at Forex, 5% have profit and less than 1% of traders make large fortune at Forex. You shouldn't produce, sell or advertise anything trading at Forex. Your assets are your knowledge, experience and a small amount of cash.

This market is a platform for banks, transnational corporations and individual traders to change the currencies they possess into other ones. This is the spot Forex market. At this market you can trade with up to 1:400 leverage which means that you'll get $400 on your account for each dollar invested. So, you can trade with the $400,000 sum having invested $1,000 onto your account.

Forex is unique among other world markets because in any time of day and night, somewhere in the world, a financial centre is open for business, banks and corporations exchange currency all the time, with a little lower frequency during the weekend.

Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.