The United States dollars weakened against the other major currencies as negative U.S. Manufacturing data failed expectations dampening demand for safer assets. Wall Street closed positive as S&P increased by 0.89% and the DOW by 0.66%. Crude decreased by 0.90% closing at $97.61/barrel, Gold strengthened by 0.35% to finish at $1,734.55. We await the release of Initial Jobless Claims, which came out at 373K versus last week’s 377K.

The Euro rose against the dollar as manufacturing came out better than analysts estimated, adding signs that Europe’s economy is stabilizing. The eur/usd momentum is positive above 1.3080. As long as the pair is trading above this, the Euro may continue to rise. Overall, the eur/usd traded with a low of 1.3026 and a high of 1.3218. No major economic data is expected today.

The British Pound strengthened against the United States dollar to close on a 2 ½ month high as manufacturing PMI in the United Kingdom came out better than expected. As long as the gbp/usd is trading above 1.5750, the British Pound momentum continues to be bullish. Overall, the gbp/usd traded with a low of 1.5706 and a high of 1.5882. Today, Construction PMI is expected at 52.8 versus 53.2 prior.

The Japanese Yen strengthened against the United States dollar for a 5^th day as a weaker Greenback lead investors to stay with the Japanese Yen. The usd/jpy momentum is bearish, so long as it’s trading below 76.50. Overall, the usd/jpy traded with a low of 76.02 and a high of 76.35. No economic data is expected today.

Finally, the Canadian dollar rose versus the United States dollar as stocks and other risky currencies closed positive, making high yielding assets the more attractive. As long as the usd/cad is trading below 1.0070, the United States dollar momentum is always negative. Overall, the usd/cad traded with a low of 0.9963 and the height of 1.0048. No economic data is expected today.

The United States dollar traded mixed against the major currencies after paired earlier losses as stocks fell after Consumer Confidence and business activities in the United States was weaker than forecast in January. Consumer Confidence unexpectedly dropped to 61.1 as gas prices picked up and more Americans said jobs are hard to get.

Wall Street closed mixed as the S&P decrease by 0.05% and the Nasdaq rose by 0.07%. Crude oil closed bat $98.30/barrel and Gold by $1,737.00/ounce. The Euro fell versus the United States dollar as investors speculated European Policy Makers won’t be able to reach an agreement regarding Greece’s debt obligations. That would of course increase the number of Portuguese banks on credit watch negative. The eur/usd momentum is negative, below 1.3080 and as long as the pair is trading below this level, the euro may continue to decline. Overall, the eur/usd traded with a low of 1.3041 and a high of 1.3188.

The British Pound strengthened to a 10-week high against the United States dollar, as long as the gbp/usd is trading above 1.5600 the Sterling’s momentum continues to be bullish. The next resistance on the daily chart is at 1.5770. Overall, the gbp/usd traded with a low of 1.5697 and a high of 1.5796. Today, Manufacturing PMI is expected with a 50.1 versus 49.6 previously. The Japanese Yen traded unchanged versus the United States dollar due to the search for new intervention by investor. The usd/jpy momentum is negative as long as the pair is trading below 77.20 and only if the pair breaks above this, would the U.S. dollar be attractive again. Overall, the usd/jpy traded with a low of 76.14 and a high of 76.40, no economic data is expected today.

The Canadian dollar declined against the U.S. dollar after GDP posted an anticipated decline in November, shrinking for the first time in 6-months on maintenance shut-downs by crude oil producers and lower natural gas extractions. Overall, the usd/cad traded with a low of 0.9964 and a high of 1.0052, no economic data is expected today.

Technical Analysis

The eur/usd saw price almost reach Resistance R1 – 1.3205 and sustained rise above this level would be suggesting next target at Resistance R2 – 1.3274. Rebound from current resistance would fall towards Main Pivot – 1.3140, based on the conclusions reached and indicators used, we are expecting a bullish trend.

We expect price to almost reach Support S1 – 76.124 for the usd/jpy and price would probably continue towards Support S2 – 75.883. Deeper decline isn’t excluded and possible fall below Support S3 – 75.562 would form new record low. With conclusions made by our indicators, we expect a bearish trend today.

For the gbp/usd outlook, price is just testing Resistance R1 – 1.5735 and it seems we can expect rise above targeting at Resistance R2 – 1.5765, where price would probably form high and then we can expect correction and possibly decline towards Main Pivot – 1.5693. The summary of our indicator shows a bullish trend.

The usd/chf has seen price just reach Support S1 – 0.9132 and break below this level would focus on Support S2 – 0.9091 and further fall towards Support S3 – 0.9053 isn’t excluded. The possible rebound from current support would focus on Main Pivot – 0.9170. The vast majority of our indicators show a bearish trend.

Fundamental Analysis

Our first news for today is the German Unemployment Change at 08:55 GMT, analysts are expecting rise in unemployment from -22K to -8K jobless people and a medium impact on the Euro. Euro Stats would release monthly statistics about unemployment rate in Euro Zone at 10:00 GMT. This expected increase from 10.3% to 10.4% and a medium impact on the Euro.

Kingsbury International would report monthly survey about Chicago purchasing Managers index at 14:45 GMT. Economists are awaiting increase from 63.1 to 62.5pts. Moreover, analysts are expecting a medium impact on the U.S. dollars. The Conference Board would release monthly report regarding U.S. Consumer Confidence at 15:00 GMT. It is expected to increase from 64.5pts to 68.2pts an addition to high impact on the U.S. dollar can be awaited.

The currency market has always attracted investors from various works of life, who have vast amount of liquidity. These investors put in a lot of trading hours, whilst they make the best from leverage offered in the currency trading business. Trend they say is always your friend. Trend trading is a strategy that would help anyone overcome the worries of making money online. The market can go through sessions with no trends, but when trends develop we can have them for a long time, making them a good for strategy development.

Viewing of timeframe on charts is vital if you wish to determine an uptrend and trade it. An uptrend can be defined as a series higher highs and higher lows. During an uptrend, the upward movement of price is visible; as it retraces a bit and moves on to touch some new highs. This oscillating action provides opportunity for profit making. Early identification of trend is necessary; this is because investors can ride on it as it moves in their direction.

Reverse the above and you’ll have conditions for a downtrend. Search for repeated lower highs and lower lows on the chart. As price moves in a downtrend, it retraces a bit and furthers downward to form new lows. You can develop a strategy that allows you make money from the periods of retracement as well as the major trend.

One of the strategies that traders employ in determining a trend that would last is by drawing a trendline. Normally, these can be a 45 degrees line place on the chart, with interest on connecting peaks or troughs on the chart. Trying to determine how long it is going to last would amount to a big guess game, but early identification would aid you make profits from it with time. Trend occurs on areas where we get retracements along the 45 degrees trendline.

Development of entry procedures should precede the identification of trend. Trade management should be carried out with stop-loss and take-profit taking center stage on the trading chart. On achieving this, you can lay back and monitor to see if the trend continues. Winning every trade is not feasible, but with a firm trading strategy as well as consistency, your odds of making profitable trades would improve.

It is always advisable that paper trading should be employed in all of this; in a bid to tryout any proposed trading system. This should provide a suitable condition that would allow you develop your own trading system, while you personalize your trading strategy.

The United States dollar weakened against the other majors following the Federal Reserve pledge to keep Interest Rate low until late 2014. Wall Street closed mixed as S&P decrease by 0.16% and the Nasdaq rose by 0.40%. Crude oil jumped to its highest level since August and amidst signs that Greece is nearing an agreement with its creditors, closing at $99.56/barrel. Gold strengthened by 0.30%, reaching its highest price in the past 6-weeks to finish at $1,732.20/ounce. Today’s the Core PCE Price Index is expected to come out 0.10% unchanged. Personal Spending came out at 0.20% versus 0.10% previously & Personal Income at 0.40% versus 0.10%.

The Euro rose versus the United States dollar to close virtually unchanged as mixed U.S. data lead to instability in the path. The eur/usd momentum is positive above 1.3150 and as long as the pair’s trading remains above this, the Euro may continue to rise and in all probability breaks above 1.3300. Overall, the eur/usd traded with a low of 1.3077 and a high of 1.3233.

The British Pound advanced for a 9^th day against the United States dollar as the Federal Reserve kept U.S. Interest rate near record low. As long as the gbp/usd is trading above 1.5600, the British Pounds momentum continues to be bullish, with the next resistance level on the daily chart at 1.5770. Overall, the gbp/usd traded with a low of 1.5640 and a high of 1.5740. No economic data is expected today.

The Japanese Yen strengthened against the United States dollar as a weaker greenback resulted after the Feds pessimistic declaration. The usd/jpy momentum is negative, as long as the pair’s trading below 77.90 levels, only if the pair breaks above this would the dollar be the more attractive again. Overall, the usd/jpy traded with a low of 77.29 and a high of 77.80.

The Canadian dollar rose against the greenback as commodities gained after the Federal Reserve’s pledge. As long as the pair’s trading below 1.0060, the U.S. dollar’s momentum would remain negative, with mixed support on the 1–Hour chart at 0.9980. Overall, the usd/cad traded with a low of 0.9957 and a high of 0.0400. No economic data is expected today.

The Euro increased against the U.S. dollar for the fifth day which is the longest streak in 3-months, after it was reported that Greece is close to coming into agreement with its creditors. Greece and its private creditors indicated that it expects to accomplish a debt swap agreement in the coming week. The Euro was also supported after Italy sold bills strengthening assets of the European Central Bank to fight the debt crisis by shoring-up banks. The market is focused on whether Greece would secure its next A-package.

Last Friday, the Euro was trading at the level of 1.3217, an increase in 0.83%. The British pound rose against the United States Dollar on speculation that Greece is closer to a debt swap deal and with a weaker than anticipated data about the American GDP. Data indicated that the economy of the USA grew by 2.8% during the 4^th quarter of 2011, lower than the estimated 3%. The British Pound was last seen trading at 1.5721, an increase of 0.21%.

The Canadian dollar climbed for a third week against the United States dollar on gains in commodities after a Fed undertook to extend its free zone U.S. Interest Rates. The Canadian dollar was last seen trading at 1.0017, an increase of 0.01%.

Gold traders have been bullish for a fourth consecutive week on speculations that the pledge from the Federal Reserve to keep Interest Rate low until late 2014 would extend gains in the precious metal. Lower Interest Rate can lead to an increase in the appeal of gold bullion, because it generally earns only through price gains. Gold was last seen trading at $1,738.32/ounce, which is an increase of 1.05%.

Oil prices climbed this week on signs that Greece is nearing an accord with its creditors and on uncertainty whether tension with Iran might disrupt oil supplies. Iran threatens to close the Strait of Hormuz after European Union announces that it would enforce an Oil embargo on the 1^st of July to increase pressure over its nuclear programme. Crude oil was last seen trading at $99.56, which is a decrease of -0.14%.

At this point I’m sure we are all aware of the fact that every profitable forex trend system comprises of certain alerts and rules. For anyone who wishes to hear, profitable forex traders know that the trend is your best friend. A profitable trading trend system would alert the investor as to when to enter a position, based on trend development.

There exist resistance levels and support levels that every profitable forex trend system needs to take cognizance of.  For bullish trend that continues pushing the price of an instrument in the upward direction after breaking a resistance line of the highs, this suggests that an investor enters a long position. The reverse is true, if a trend goes beyond the low resistance line – a sell is advised. A trend line basically does not in itself roll in the bucks from trading without understanding two distinct rules – market consolidation and false trend breakout.

1. Market Consolidation – We experience a market consolidation when a trend keeps moving in a straight line. We find highs and lows in the currency market, but these highs and lows need to be broken by price action in order to verify if the market is consolidating. We find consolidations in the market when price action continues to move higher during a bullish trend. Patience is needed in a bid to see if price would continue in that direction, by breaking past the highs for a bullish trend. The reverse is true, when price tends to go bearish and then starts to consolidate. Allow some time to pass, so that you’ll be able to notice if the trend is continuing by breaking the lows.

2. False Trend Breakout – As an investor, it is imperative to read charts and analyze them. We find trades that are already in the green, turning into false alarms due to any of the following:

i. Just Opened Market &

ii. Breaking Market News

These are just a few of the measures that have been put in place to aid investor avoid false alarm. Do have handy a copy of the forex calendar, this would help you know when any major breakig news is coming and hence stay off trading within the first couple of minutes or seconds. News and weather are factors that can invariably affect a profitable trend following system that is out of your control as a person.

For some of you out there who are thinking of making it big via online stock trading, the options trading is a refreshing way that investors employ in the trading of stocks and it’s beneficial investing online in this niche. Investors who invest in options do not require much knowledge, but it should be stated that the risk abounds in this market and that starters must not invest heavy.

The put options trading has two sides to it, one is the side of protection for your equity, which also purchases insurance on your stocks. Secondly, we have the wealth development section, which pays investors for owning stocks.

Purchasing Your Put Options

For an investor who owns a put options contract, you have the power to sell a stock at a certain price, until we see expiration in the option or you sell it. We find investors out there who safe guard their investments from huge price fluctuations to the downside and then lock in profits. An example is a stock that was bought by an investor and it shoots up by $7, this a big move.

At this point you are asking the big question of either riding the profits or taking it. It is important to note that if nothing is taken, then you stand a chance of wiping out in minutes alongside some negative news.

Earning Monthly Income with Put Option

With Put Option, you stand the chance of earning good profit and at the same time build wealth. For any investor who’s willing to safeguard his stocks by buying put, he’ll need to have someone who’s interested in selling those put to him

The main attraction when dealing with put option selling is to sell put on stocks that you won’t mind owning and to also go in search of stocks that are basically flat as their price goes. With flat stocks we find them making movements that do not exceed $3/month.

From my personal experience, I made a lot of success via trading stocks that stood around $20 – $30 in price range. Anything that falls outside this range tends to be too risky in my experience.

With my investments of over 10 years and well formulated research on how wealth is being built. The Put Option is a primary trading strategy that can create low risk residual income stream.

Currency trading offers a lot of excitement, and when investors got started there have been a show of eagerness. Newbies are always trying hard on making profits as soon as they can. You find new traders who doll out cash willingly to pay for online coaching and webinars, just in a bid to learn how to trade forex. Others would stop at nothing just to obtain a profitable automated trading system.

Folks out there who pay money to learn forex or get an automated forex trading system might be getting it wrong and could end up wondering what else they need to do in order to get fully acquainted with the business when they fail along that vein.

Currency trading is not a get quick business, this you should have known by now as it requires your times and patience, alongside practicing within a defined period. It’s surprising that a lot of people still don’t get it, when everything you need to know about forex is free. A google search on it would reveal all you need to know about this subject.

You’ll find vendors out there who are trying hard to market paid forex products and services that are valued around thousands of dollars. Most of these vendors turn out to be terrible traders. The basic truth is this, if they are so good, why they go the extra mile to market these products when they can invest their funds and make huge yields from it.

Going through sites like BabyPips and forums like ForexFactory would allow you learn a whole lot from these two sites. After which you can start practicing how to place trades, using some of the free techniques shown there on a free account as well.

An interesting thing about currency trading is the fact that if you get a good trading system of a good trading strategy, and is able to manage your emotions during trading, then you’re sure on your way towards becoming a seasoned and a profitable trader.

I should clearly state here that Money management is one thing that a lot of investors overlook. If you can get a firm grasp of money management technique and also disciplined enough to adhere to the techniques, then you’re on the right path to success.

Forex trading is like every other business in the world, it requires your time, some patience and smart thinking on your part. Stay focused and don’t get deceived by the flashy ads with all the Holy Grail promises – hyped products always fail.

A whole lot of trading models we find around today are built on the moving averages system. We find a whole lot of them that are sophisticated and have a good count of variables in them. We also see that a whole bunch of the trading models design their systems based on the direction of the moving averages, and they would be able to stay in the market as long as it does remain unaltered. We get moving averages that try to alter trend and are as such very profitable if in the hands of an experienced investor.

The main concept that defines the moving average (MA) is in knowing when price action takes a different turn as against the recent average prices. If you get the current price action pointing above the MA’s of a defined period, then we should expect the trend to move on. Investors around the globe bestow a lot of importance on Moving Averages, and this makes it worthwhile following.

A short term trader is horribly limited as we find prices of commodity oscillating more continuously than those of other investment vehicles. Having said that an ideal MA should be able to carry out the following:

1. It should be able to pinpoint a major change in price trend immediately and not days after such price changes.

2. During minor swings and consolidation periods, we do not want to see the moving averages near those of daily prices in a bid to avoid whip-saws.

3. The activity of the MA plot should be in line with the volatility of the investment vehicle.

The interesting thing with moving averages is the fact that the shorter the timeframe, the more sensitive the MA is to trend changes. We find the investors paying a price for this over-sensitivity, as the investor gets more number of trade which adds up to more commissions and whip-saw losses altogether.

We find delays on moving averages as the falter in their indication of changes in price actions. Quite often, we find these delays a lot more than would be the case when making the use of some simple charts or other alternative charting software. Howbeit, the major advantage of using moving average is the fact that it allows the user take charge of any trending investment vehicle.