In this issue:
1. Weekly market review.
2. Weekly technical analysis
3. Why we are not affected by the latest CFTC regulations.
4. Representatives Wanted!
5. Economic Calendar, Pip value calculator and other useful links.
1. Weekly review for 18 – 22. 10, 2010
During the beginning of the previous trading week the greenback gained some strength against the background of the euro weakening. Expectations for the release of the Euro-zone fundamentals, which were planned to be published on Tuesday, pressured the euro. According to the forecasts, the Euro-zone ZEW survey (economic sentiment) was expected to decrease in October. As a result, the EUR/USD rate decreased to its minimums of $1,3830 mark. In the meantime, the forecasts of US housing market releases, which showed decrease, reinforced the speculations that the FRS would continue to introduce the policy of the quantitative easing. Market participants were waiting for the meeting of the Ministers of Finance and the G20 heads of the central banks’, which was planned for October 22-23 in South Korea.
On Monday the yen continued to trade around its 15-year maximum against the US dollar, as the speculations that the Japanese government would refrain from intervening in currency markets, reinforced. The yen strengthened against its major competitors as well.
As the greenback demonstrated some stabilization, the oil price decreased to the $80.78 level per barrel. Gold and silver also showed some negative movement, as the US dollar strengthened against the major currencies temporarily. The “yellow metal” dropped to $1352.80 per ounce, and the silver rate decreased to $23.77 per ounce.
The expectations for the negative Euro-zone fundamentals continued to pressure the euro on Tuesday as well. The EUR/USD pair demonstrated its decrease to the level of $1,3900. The released German ZEW survey (Economic sentiment) for October dropped to -7.2, compared to the forecasted decrease to -7.0. But at the same time the current situation of the same indicator grew to 72.6, against the predicted growth to 64.0. As a result, the euro showed temporary stabilization, and the EUR/USD grew and reached maximums of $1.3960.
The decrease of the Asian stock market supported the demand for the save-haven currencies. As a result, the greenback strengthened against its major competitors. The US Minister of Finance, Timothy Geithner, stated, that the US dollar would continue to be the world reserve currency, and rendered additional support to the greenback. The unexpected increase of the interest rates in China pressured the stock markets, commodity markets and high-yielding assets.
According to the released information on the same day, the Bank of Canada refrained from raising the principal interest rate this month. Therefore, the Canadian dollar was under additional pressure.
On Wednesday the EUR/USD rate grew and reached the $1,3856 level. The GBP/USD pair showed maximums above the $1,5700 level, but the rate stopped growing after the release of the last Bank of England minutes.
The results of the Beige book report turned out to be a little stronger than the previous one, since the national economic activity demonstrated moderate growth. The greenback did not show any reaction to the Beige book publication, and the EUR/USD pair consolidated around the $1.3970 level.
Euro-zone fundamentals, which were released on Thursday, rendered support for the euro. The German PMI manufacturing and services indicators increased above expectations for October. The statement of the US Minister of Finance, Timothy Geithner, rendered support to the greenback, which showed strengthening against the major currencies. He mentioned, that the US government was not carrying out a deliberate policy of US dollar devaluation. According to the experts’ opinion, this dollar growth was temporary.
On the same day the pound dropped and the GBP/USD pair decreased to the mark of $1,5750. The UK retail sales data in September was disappointing, which unexpectedly dropped below the forecasts. As a result, the sterling was under pressure.
The Australian dollar incurred losses on Thursday, as the speculations over the possibility that Chinese government would continue to undertake measures for cooling the economy, reinforced.
By the end of the week, the EUR/USD set its weekly maximum at $1.4049, but closed the week around the $1.3950 mark. The GBP/USD pair dropped to $1.5700 level at the end of the week.
Happy trading!
2. Weekly technical analysis for 25-29.10 2010
EURUSD
The pair may try to break Fibonacci 23.6% retracement 1.42098. Higher is a trendline resistance at 1.44835.
Resistance: 1.41130, 1.44835, 1.47697
Support: 1. 37441, 1.33427, 1.28004
GBPUSD
The pair is under pressure of Moving Average ( 100) and trendline at 1.59962. Once this level is broken the pair will rise to 1.64274. If the pair stays below 1.59962 the pair will decline to 1.57460.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43343
USDCHF
The pair has reached support 0.96526. Here is a strong level and bottom of 16.03.08. If the pair stays below 0.96526 the pair will drop to 0.93770. If the pair stays above 0.96526 the pair will rise to 0.99031. Strong resistance is at 1.01369 a trend line.
Resistance: 0.99031, 1.01369, 1.04060
Support: 0.96525, 0.93770, 0.91074
USDJPY
The pair is aiming to 80.244.
Resistance: 83.330, 86.836, 90.909
Support: 80.244, 76.535, 73.126
AUDUSD
The pair is aiming to test 1.00031 again. If the pair breaks this level the pair will rise to 1.02299.
Resistance: 1.00031, 1.02299, 1.04441
Support: 0.97889, 0.94048, 0.89581
3. Why we are not affected by the latest CFTC regulations.
Many traders are asking us if we are affected by the most recent NFA regulations that considerably reduced trading leverage on major and exotic pairs. The answer is No. We are not affected and as usual are able to provide the most flexible trading conditions and the leverage of up to 1:500. Only the companies and traders operating in the US and regulated by the NFA and CFTC are affected by the above mentioned changes. Forex-Metal is not based in the US and is regulated in other jurisdictions, therefore we are able to provide better trading conditions then the ones in the US.
Need to open a new trading account? Submit an online form here:
https://forex-metal.com/accounts/new
4. Representatives Wanted!
We are expanding our operations and would like to open a representative office in your country, so we can be closer to our customers. If you feel that you are up to it: to have an interesting business and to have a steady income, then talk to us. You do not need to have any special knowledge - full training and support will be provided by us.
For more details please contact our Business Development team at business@forex-metal.com or talk to our operators via live chat and they will put you to the right person.
5. Economic Calendar, Pip value calculator and other useful links.
• 4 major currency pairs are now also available for trading with market execution. All trading on our platform is done as instant execution, however for USDJPY, EURUSD, USDCHF and GBPUSD you now have a choice to trade them with instant or market execution. To trade these pairs with market execution right click on your symbols, choose Symbols in the menu, then in the section Forex choose these 4 pairs with letter M at the end, i.e. EURUSD_M and press Show.
• The general trading conditions and to open an account click here:
https://forex-metal.com/accounts/new
• Make an instant deposit into your account using credit card, Liberty Reserve or other methods. Visit the Deposit Funds page for full list of available payment methods:
https://forex-metal.com/fund_transactions/new
• Economic Calendar: https://forex-metal.com/ecpresentations
• Pip value calculator: https://forex-metal.com/home/pip_calculator
• No-swap or Islamic accounts.
Did you know that you can have a no-swap account or Islamic account at Forex-Metal?
We offer two types of no-swap accounts: with gifts and donations and without gifts and donations.
No-swap account with gifts and donations: with very small credits (gifts) and debits (donations) on your trading account which are approximately equal to the swap amounts. No account costs.
No-swap account without gifts and donations: no additional credits or debits, only spreads (the same spreads, no difference from the regular account). No account costs.
1. Weekly market review.
2. Weekly technical analysis
3. Why we are not affected by the latest CFTC regulations.
4. Representatives Wanted!
5. Economic Calendar, Pip value calculator and other useful links.
1. Weekly review for 18 – 22. 10, 2010
During the beginning of the previous trading week the greenback gained some strength against the background of the euro weakening. Expectations for the release of the Euro-zone fundamentals, which were planned to be published on Tuesday, pressured the euro. According to the forecasts, the Euro-zone ZEW survey (economic sentiment) was expected to decrease in October. As a result, the EUR/USD rate decreased to its minimums of $1,3830 mark. In the meantime, the forecasts of US housing market releases, which showed decrease, reinforced the speculations that the FRS would continue to introduce the policy of the quantitative easing. Market participants were waiting for the meeting of the Ministers of Finance and the G20 heads of the central banks’, which was planned for October 22-23 in South Korea.
On Monday the yen continued to trade around its 15-year maximum against the US dollar, as the speculations that the Japanese government would refrain from intervening in currency markets, reinforced. The yen strengthened against its major competitors as well.
As the greenback demonstrated some stabilization, the oil price decreased to the $80.78 level per barrel. Gold and silver also showed some negative movement, as the US dollar strengthened against the major currencies temporarily. The “yellow metal” dropped to $1352.80 per ounce, and the silver rate decreased to $23.77 per ounce.
The expectations for the negative Euro-zone fundamentals continued to pressure the euro on Tuesday as well. The EUR/USD pair demonstrated its decrease to the level of $1,3900. The released German ZEW survey (Economic sentiment) for October dropped to -7.2, compared to the forecasted decrease to -7.0. But at the same time the current situation of the same indicator grew to 72.6, against the predicted growth to 64.0. As a result, the euro showed temporary stabilization, and the EUR/USD grew and reached maximums of $1.3960.
The decrease of the Asian stock market supported the demand for the save-haven currencies. As a result, the greenback strengthened against its major competitors. The US Minister of Finance, Timothy Geithner, stated, that the US dollar would continue to be the world reserve currency, and rendered additional support to the greenback. The unexpected increase of the interest rates in China pressured the stock markets, commodity markets and high-yielding assets.
According to the released information on the same day, the Bank of Canada refrained from raising the principal interest rate this month. Therefore, the Canadian dollar was under additional pressure.
On Wednesday the EUR/USD rate grew and reached the $1,3856 level. The GBP/USD pair showed maximums above the $1,5700 level, but the rate stopped growing after the release of the last Bank of England minutes.
The results of the Beige book report turned out to be a little stronger than the previous one, since the national economic activity demonstrated moderate growth. The greenback did not show any reaction to the Beige book publication, and the EUR/USD pair consolidated around the $1.3970 level.
Euro-zone fundamentals, which were released on Thursday, rendered support for the euro. The German PMI manufacturing and services indicators increased above expectations for October. The statement of the US Minister of Finance, Timothy Geithner, rendered support to the greenback, which showed strengthening against the major currencies. He mentioned, that the US government was not carrying out a deliberate policy of US dollar devaluation. According to the experts’ opinion, this dollar growth was temporary.
On the same day the pound dropped and the GBP/USD pair decreased to the mark of $1,5750. The UK retail sales data in September was disappointing, which unexpectedly dropped below the forecasts. As a result, the sterling was under pressure.
The Australian dollar incurred losses on Thursday, as the speculations over the possibility that Chinese government would continue to undertake measures for cooling the economy, reinforced.
By the end of the week, the EUR/USD set its weekly maximum at $1.4049, but closed the week around the $1.3950 mark. The GBP/USD pair dropped to $1.5700 level at the end of the week.
Happy trading!
2. Weekly technical analysis for 25-29.10 2010
EURUSD
The pair may try to break Fibonacci 23.6% retracement 1.42098. Higher is a trendline resistance at 1.44835.
Resistance: 1.41130, 1.44835, 1.47697
Support: 1. 37441, 1.33427, 1.28004
GBPUSD
The pair is under pressure of Moving Average ( 100) and trendline at 1.59962. Once this level is broken the pair will rise to 1.64274. If the pair stays below 1.59962 the pair will decline to 1.57460.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43343
USDCHF
The pair has reached support 0.96526. Here is a strong level and bottom of 16.03.08. If the pair stays below 0.96526 the pair will drop to 0.93770. If the pair stays above 0.96526 the pair will rise to 0.99031. Strong resistance is at 1.01369 a trend line.
Resistance: 0.99031, 1.01369, 1.04060
Support: 0.96525, 0.93770, 0.91074
USDJPY
The pair is aiming to 80.244.
Resistance: 83.330, 86.836, 90.909
Support: 80.244, 76.535, 73.126
AUDUSD
The pair is aiming to test 1.00031 again. If the pair breaks this level the pair will rise to 1.02299.
Resistance: 1.00031, 1.02299, 1.04441
Support: 0.97889, 0.94048, 0.89581
3. Why we are not affected by the latest CFTC regulations.
Many traders are asking us if we are affected by the most recent NFA regulations that considerably reduced trading leverage on major and exotic pairs. The answer is No. We are not affected and as usual are able to provide the most flexible trading conditions and the leverage of up to 1:500. Only the companies and traders operating in the US and regulated by the NFA and CFTC are affected by the above mentioned changes. Forex-Metal is not based in the US and is regulated in other jurisdictions, therefore we are able to provide better trading conditions then the ones in the US.
Need to open a new trading account? Submit an online form here:
https://forex-metal.com/accounts/new
4. Representatives Wanted!
We are expanding our operations and would like to open a representative office in your country, so we can be closer to our customers. If you feel that you are up to it: to have an interesting business and to have a steady income, then talk to us. You do not need to have any special knowledge - full training and support will be provided by us.
For more details please contact our Business Development team at business@forex-metal.com or talk to our operators via live chat and they will put you to the right person.
5. Economic Calendar, Pip value calculator and other useful links.
• 4 major currency pairs are now also available for trading with market execution. All trading on our platform is done as instant execution, however for USDJPY, EURUSD, USDCHF and GBPUSD you now have a choice to trade them with instant or market execution. To trade these pairs with market execution right click on your symbols, choose Symbols in the menu, then in the section Forex choose these 4 pairs with letter M at the end, i.e. EURUSD_M and press Show.
• The general trading conditions and to open an account click here:
https://forex-metal.com/accounts/new
• Make an instant deposit into your account using credit card, Liberty Reserve or other methods. Visit the Deposit Funds page for full list of available payment methods:
https://forex-metal.com/fund_transactions/new
• Economic Calendar: https://forex-metal.com/ecpresentations
• Pip value calculator: https://forex-metal.com/home/pip_calculator
• No-swap or Islamic accounts.
Did you know that you can have a no-swap account or Islamic account at Forex-Metal?
We offer two types of no-swap accounts: with gifts and donations and without gifts and donations.
No-swap account with gifts and donations: with very small credits (gifts) and debits (donations) on your trading account which are approximately equal to the swap amounts. No account costs.
No-swap account without gifts and donations: no additional credits or debits, only spreads (the same spreads, no difference from the regular account). No account costs.