COMMENTARY

• Forex: Which Currency Pairs Have the Widest Trading Ranges?
  Written by Kathy Lien
  Last updated 12/28/2009 10:50:48 AM ET
  With many markets around the world closed for Boxing Day, trading has been extremely quiet. Aside from the Dallas Fed Manufacturing Activity report, which strengthened in the month of December, there have been no other economic releases on the calendar. Equities hit a new yearly high this morning on news that retail sales have been better than expected this holiday season but the gains are fading quickly.
  5 comments
• Top 5 Forex Events of the Decade
  Written by Kathy Lien
  Last updated 12/25/2009 8:23:09 AM ET
  In 2010 we are ringing in a New Year and a New Decade. Before we start thinking about what could come in the next year however, we want to take this opportunity to talk about the 5 most memorable forex events of the decade. The past 10 years has been a rollercoaster ride for everyone. The highs include the birth of social networking, the growing popularity of Google, the online video revolution led by YouTube and debut of Apple’s iPod and iPhone products. The lows include the financial crisis, 9/11 and natural disasters. These developments have affected each of our lives but only a few have had a lasting impact on the currency market. Here are the forex events that have made our top 5 list. We encourage all of our readers to add your own in the comments section and if they are interesting, we may even collect them for an updated report!
  13 comments
• Creating a trading plan
  Written by Bradley Gareiss
  Last updated 12/24/2009 6:36:26 PM ET
  We will go over the basic steps and requirement for creating a complete trading plan.
  10 comments
• Forex: Don't Rule Out a Breakout After Christmas
  Written by Kathy Lien
  Last updated 12/24/2009 2:33:57 PM ET
  U.S. equity markets ended the day at year to date highs, but the performance of the dollar on Christmas Eve has been mixed. The greenback retreated against the euro, Japanese Yen, Australian and New Zealand dollars, was unchanged against the pound but strengthened against the Canadian dollar.
  0 comments
• Dollar Bulls Struggle to Regain Control After Stronger U.S. Data
  Written by Kathy Lien
  Last updated 12/24/2009 8:58:38 AM ET
  Ahead of Christmas holidays, dollar bears finally have something to celebrate. For the second day in row, the U.S. dollar gave back its gains against higher yielding currencies. The combination of a shortened trading day and the approval by the Greek Parliament of an "austerity budget" aimed to reduce the deficit to GDP ratio from 12.7 percent to 9.1 percent next year has led to profit taking on short EUR/USD positions.
  2 comments
• Live Account vs. Demo Account
  Written by Bradley Gareiss
  Last updated 12/23/2009 7:33:17 PM ET
  As our patterns continue to reset (for the most part), we will review why your results in your demo account will probably contrast sharply with the results in your live account.
  2 comments
• U.S. Dollar: Buckling Under Fundamental and Technical Pressure
  Written by Kathy Lien
  Last updated 12/23/2009 4:25:44 PM ET
  It is clearly a quiet day in the currency market when we get can excited about a 0.5 percent sell-off in the U.S. dollar. However this is the most significant correction that we have seen in the currency in 7 days against the euro and Japanese Yen and 5 days against the British pound. There is no question that the dollar has become extremely overbought and was due for a correction. The combination of disappointing economic data and technical resistance has finally caused the Teflon currency to buckle. The dollar weakened against every single currency except for the British pound with the sharpest losses seen against the Canadian dollar, the only currency to outperform the greenback this month.
  1 comment
• Dollar Hit by Confidence and News Home Sales
  Written by Kathy Lien
  Last updated 12/23/2009 10:25:36 AM ET
  Another round of weak economic data has forced the U.S. dollar to give up its gains. Although the lofty University of Michigan consumer confidence numbers were revised lower for December, it does not draw away from the fact that confidence improved dramatically this month.
  4 comments
• U.S. and Canadian Data Disappoint
  Written by Kathy Lien
  Last updated 12/23/2009 8:54:31 AM ET
  The first round of U.S. data this morning has not failed to extend the gains in the dollar. Personal income and personal spending growth along with the PCE deflator all fell short of expectations.
  0 comments
• Understanding The Forex- Equity Correlation
  Written by Kathy Lien
  Last updated 12/22/2009 5:10:38 PM ET
  With the S&P 500 and Nasdaq hitting year to date highs, it should not surprise currency traders that the dollar has extended its gains. Since the beginning of the month, the dollar appreciated more than 5 percent against the Japanese Yen and over 4 percent against the euro, Australian dollar and Swiss Franc. The only currency that has been stronger than the greenback is the Canadian dollar and even then the loonie’s gains have been marginal. Today, the loonie remains the only currency to strengthen against the dollar. The correlation between the foreign exchange and equity markets continue to dominate trading but it is important to realize that this is a new development on a quiet trading week with unusually low volume and market participants.
  4 comments
• EUR/USD Rides Intraday Rollercoaster
  Written by Roger Stojsic
  Last updated 12/22/2009 1:49:15 PM ET
  Although we've seen some rather sharp turns this morning, price action did not come as a total surprise...
  11 comments
• U.S. and U.K. GDP Growth Losing its Luster
  Written by Kathy Lien
  Last updated 12/22/2009 10:14:49 AM ET
  This morning, the U.S. dollar traded higher against every major currency except for the euro. Although mixed economic reports triggered sharp volatility in the early hours of the U.S. session, the lack of additional catalysts today should help to stabilize the foreign exchange market.
  0 comments
• How Does The Santa Rally Affect The Dollar?
  Written by Kathy Lien
  Last updated 12/21/2009 4:56:22 PM ET
  Dollar bulls remain in control despite thin trading conditions and the lack of U.S. economic data. The greenback extended its gains against every major currency with the Australian dollar and Japanese Yen losing the most ground. The rally in U.S. equities has evoked speculation about whether the Santa Claus rally has come early this year. According to the Stock Traders Almanac, “it is pretty much clockwork” for stocks to post gains at the end of the year. Stocks ended higher 12 out of the last 15 end of the year periods as holiday cheer translated into holiday gains. This morning, the Nasdaq hit a fresh year to date high intraday fueling speculation that equities in general may end the year at new highs
  4 comments
• EUR/AUD Sell Opportunity Emerging
  Written by Roger Stojsic
  Last updated 12/21/2009 2:42:45 PM ET
  The EUR/AUD is showing solid near-term resistance near 163.50 based on an emerging...
  0 comments
• Forex: The Reality of Thin Holiday Trading
  Written by Kathy Lien
  Last updated 12/21/2009 11:18:16 AM ET
  It is a quiet week in the forex markets with many traders having already closed their books and off enjoying the holidays with their families. As a result, everyone has said to expect "thin trading conditions." However many traders may be wondering what thin trading conditions really mean.
  0 comments