As we published on our Facebook page and also our ForexFactory’s thread EUR/GBP since 2 days ago tried to break an important support but failed. That’s way a great potential for short is waiting for this fall and if it come true we can short it behind this support.
Here is our chart screen shot:
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After a chaotic week that all traders ruined by some shocking news around euro debt and also U.S. credit downgrade. We all waiting for market reaction on these news this week.
Already i see a powerful channel that happened on EUR/USD and EUR/JPY and we can have good long or short signal on the side of these channels but its technically part of analysis, but fundamentals can ruined everything on this Forex market that since new year has bad condition.
This week we had huge ride on AUD/USD and key resistance on 1.1000 almost broken, but AUD/USD can’t hold it for long time and fall again but on friday because of worst than expected GDP new bullish ride forming, anyhow if we try to follow bullish idea then better wait for small retrace maybe to 1.0800 or 1.0870 then try to take new long on correct signal.
Also this week we have AUD Cash Rate, RBA Rate Statement and NFP for USD that can make huge move on each side of this pair.
This week after Greece crisis we had huge loss for USD on Forex market and that was the reason of bullish move on euro and also other pairs.
As quick watch on EUR/USD daily chart we can consider new possible for bearish on this pair, maybe around daily trend line. 1.4470 is reasonable for this idea. So lets wait and see how market will deal with this analysis.
This week its possible to see new bullish wave on EUR/GBP, after we had signal on friday for long on Trend-Line and its really worked. Anyhow its still possible for us to take another long position on next TL touch on this pair.
This week forex market was really interesting after the last ECB try for controlling inflation in euro zone by hike the rate. Already some fundamentalist believe that ECB will have no new plan for hike rate in next months, So i guess sooner or later we should see strong bearish wave on EUR/USD. On the other hand USD economic after NFP came to new fog, so this week is really critical for EUR/USD.
Pros and Cons
There are basically two groups of traders in the Forex market; the technicians and the fundamentalists. We are going to concentrate on the latter. Fundamentalists are traders who predict price movements in foreign exchange trading using fundamental analysis as opposed to the use of technical analysis by technicians. All in all, most traders use both of them in achieving the best results in the Forex market.
What is fundamental analysis?
This is an analysis that assumes that the currencies’ supply and demand is caused by observable economic processes. Therefore, they take their time in observing the economic, political and social factors that might be responsible for the supply and demand drive. Fundamentalists believe that they can accurately predict the price movements through the observation of all the different kinds of indicators.
Currency prices reflect the balance that exists between the supply and the demand, therefore, the analyzing of interest rates, foreign investments, GDP, balance of trade, etc. allows traders to predict price movements. Different fundamental analysts concentrate on different indicators such as economic growth rates, interest rates, inflation, unemployment, with data related to international trade and interest rates being given priority and more attention. Fundamentalists are aware of the release time for different economic indicators. They have calenders that they mark dates when significant statistics will be released.
Fundamental analysis has its own advantages and disadvantages but the fact that a lot of traders still use it just shows that the former overcomes the latter.
Advantages of fundamental analysis
- The observation of the different basics of the Forex market will increase your knowledge and enable you to understand the global market better.
-It allows you, as the trader, to predict the economic conditions accurately.
-We can know what is happening in the market generally and know the health state of the market.
-The main limitation is that fundamental analysis will, sometimes, not show you the entry or exit points.
-Another disadvantage is the fact that you will be required to monitor quite a lot of factors at the same time which is not everybody’s cup of tea.
Though fundamental analysis is considered to be an outdated method, it still plays a major role in the Forex market.
The pros and cons
If you are involved or you are thinking of being involved in the Forex market, then you must have come across the different types of analysis which are; fundamental and technical analysis. You must have also noticed that there are strong arguments over which the best analysis is. The truth is that they are not exclusive and most successful traders use both of them. We will focus on the technical analysis and look at its advantages and disadvantages.
What is technical analysis in the Forex market?
This is a method that makes use of what happened in the Forex market in the past to predict the future market trends and price movements by using charts. The analysis takes into consideration the actual price movements and avoids the reason behind the movements. This analysis is the most precise and easiest method in the trading of currencies. Its operations are based on three main principles:
-The currency’s price reflects every known aspect in the market that can affect it.
-The analysis of the behavior of the patterns is very important because the prices will move in trends.
-Patterns will always repeat themselves.
Regardless of the Forex system you are using, the best way to proceed effectively is via the use of Forex trading.
•Technical analysis is fully objective – it concentrates on tools and charts and does not consider feelings or any other less precise aspects.
•As a trader, you will only be require to pay attention to what is happening in the market and not what might happen.
•The analysis will assist you in making important Forex trading decisions such as when to enter the market and the amount of money to risk in the market.
•The analysis can show you an end to a trend long before it shows in the market. This is important because you will be able to minimize your losses and maximize on profits.
This does not mean that technical analysis has no disadvantages. Traders who opt to use fundamental analysis do so as a result of what they point as being the drawbacks of technical analysis.
•There are situations that will not work out right because today’s prices might not be a great way to predict the future prices.
•If you rely on charts, this means that you are not in a position to pick up signals when there is a change of trend until such a time when the changes occur. You will therefore miss up to 1/3 of fluctuations in the market.
•There are chances of acting on patterns prematurely as a result of panic thus causing massive losses especially if this is done by a lot of traders.
You can use whatever Forex trading system that you like, but one thing for sure is that you will not survive without technical analysis. You should take your time in learning how it works and don’t allow it to control your all. Make it your servant and you will succeed in the Forex market.
Time is very important in everything, but it is even more important when it comes to the Forex market. Timely or untimely actions of a trader can earn them millions or make them lose more than that in a split of a second. The forex market is the largest market in the world, it sees over $3 trillion worth of transactions, operates around the clock thus making it impossible for traders to stay vigillant when it comes to the market changes and fluctuations. This is where there is a need for alarms and indicators that will enable the trader to know when there are probable pitch points and opportunities that they can take advantages of. This is why Forex signals, also refered to as alerts, are very important in this market. In simple terms, forex signals are indicators that show the trader the right time to buy or sell.
Who operates the Forex signals?
The Forex signals providers are operated by professionals who know their way in this field. They spend most of their time in studying and learning about the market and its operations. A lot of successful traders trust the recommendations they get from these professionals when they are making crucial investment decisions.
The Forex signal provider plays a major role either in the poor or good trading performance of the trader. It is therefore, important to take time while selecting a Forex signal provider.
What are the benefits?
With Forex signals, the Forex market is not all that harsh for beginners. You will get the much needed advice that will lead into you trading successfully because you will be guided as to which currency to buy and which to sell at a particular time. Forex signals are either automated or manual. The automated signals, the system will alert the trader when to enter or when to exit a trade and also make deals by a synchronized operation with the trader’s broker or bank. The manual Forex system is simple and is provided by a single provider.
Forex trade is a fascinating and at the same time a frustrating trade that keeps a trader preoccupied with the opportunities and the fluctuations involved. Another benefit of the alerts, or the Forex signals is that they reach the trader very fast via the use of emails, SMS, or desktop software. The alerts are available to every trader and thus provide equal opportunities to both the small and the big fish in the Forex market.
To say the least, the Forex signals are traders’ greatest assets in the Forex business. Without them a trader would be in the dark and a lot of opportunities would fly by while most of the decisions they make would be baseless leading them to massive losses.
You can get the best and most accurate Forex signals here that will keep you on the success track. Forex trading signals are like light in the Forex world and you have to ensure that your light shines brightest.