EURUSD: Pressure Builds On The Upside.
October 5, 2012 10:52 am in Forex Analysis
0EURUSD: The pair rallied sharply to close higher on Thursday. However, we will have to see EUR return above the 1.3047 and the 1.3171 levels to prevent a return to the 1.2824 level. If above the 1.3171 level is traded, the 1.3282 level will be targeted where a violation will call for a move further higher towards its weekly ema at 1.3415 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 1.2824 level where a violation will call for a move further towards the 1.2755 level. We expect a cap to occur here and possibly turn the pair higher again. All in all, EUR continues to maintain its short term upside bias.
Mario said on October 14, 2012
The foreign exnhgcae market is the largest and most liquid financial market in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exnhgcae and related markets is continuously growing.Unlike a stock market, the foreign exnhgcae market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest commercial banks and securities dealers. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread.A list of benchmarks could include:Euro Currency Trust (FXE)DB Currency Index Value Fund (DBV)Australian Dollar Trust (FXA)British Pound Sterling Trust (FXB)Canadian Dollar Trust (FXC)Mexican Peso Trust (FXM)Swedish Krona Trust (FXS)Swiss Franc Trust (FXF)WisdomTree Dreyfus Brazilian Real (BZF)Just be careful and try to educate yourself. Don’t invest any money that you would actually need. Good luck!