Forex Crunch EUR/USD Aug. 16: Stops to Rest Before Next Falls |
- EUR/USD Aug. 16: Stops to Rest Before Next Falls
- Forex Daily Outlook – August 16 2010
- Binary Options Setups – August 16-20
- FXCM Gives Best Possible Price on Weekend Gaps
| EUR/USD Aug. 16: Stops to Rest Before Next Falls Posted: 15 Aug 2010 11:34 PM PDT
At the wake of the new week, EUR/USD touched based with the strong support line, but later went up and corrected some of last week’s disastrous losses. Here’s a quick update on fundamentals, technicals and community trends. EUR/USD Technicals
EUR/USD Fundamentals
EUR/USD Sentiment
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| Forex Daily Outlook – August 16 2010 Posted: 15 Aug 2010 02:00 PM PDT
We start the week with interesting development in US Treasury International Capital (TIC) Long-Term Purchases, Rightmove HPI in Great Britain, some interesting development regarding the Prelim GDP in Japan and more updates; let’s see what awaits us today. In the US, Treasury International Capital (TIC) Long-Term Purchases is about to rise by 0.9B. This data represents the balance of domestic and foreign investment and measures the value between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners during the reported period;
Later in the US, Empire State Manufacturing Index, Survey of about 200 manufacturers in New York state which asks respondents to rate the relative level of general business conditions, is about to rise by 3.1 points, It’s a leading indicator of economic health that measures the diffusion index based on surveyed manufacturers in New York state. More in the US, Mortgage Delinquencies, Percentage of Mortgage Bankers Association (MBA) represented mortgages which were at least one payment late during the previous quarter, stabilizes on 10.06%, it’s generally viewed as a lagging indicator, the number of delinquencies can be an important signal of the housing market’s health because it’s correlated with home inventories. Finally in the US, National Association of Home Builders (NAHB) Housing Market Index, Survey of about 900 home builders which asks respondents to rate the relative level of current and future single-family home sales will rise by 1 points but still indicates a negative outlook on home sales. For more on USD/CAD, read the Canadian dollar forecast. In Europe, Consumer Price Index (CPI) stabilized on 1.7%, It’s the Eurozone’s most important inflation data because it’s used as the central bank’s inflation target. Consumer prices account for a majority of overall inflation. More in Europe, Core CPI The Core data has a mild impact relative to other countries because overall CPI is the central bank’s mandated inflation target and measures the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco; and it is about to rise by 1%. For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis. In Great Britain, Rightmove House Price Index (HPI), stabilizes on 0.6^, this is the UK’s earliest monthly report on housing inflation that measures the price of homes for sale Read more about the Pound in the GBP/USD forecast. In Australia, New Motor Vehicle Sales a monthly report that indicates a sign of consumer confidence – rising demand for expensive durable goods shows that consumers are confident in their future financial position and feel comfortable spending money. For more on the Aussie, read the AUD/USD forecast. In Japan, Prelim Gross Domestic Product (GDP), measures the inflation-adjusted value of all goods and services produced by the economy, it decrease from 1.2% to 0.6%. There are 2 versions of GDP released about a month apart – Preliminary and Final. The Preliminary release is the earliest and thus tends to have the most impact. And the Prelim GDP Price Index is about to decrease by 1% and It’s the broadest measure of inflation, encompassing all activities included in GDP, and is a primary instrument that the central bank uses to assess inflation. More in Japan, Tertiary Industry Activity is about to rise up by 0.9%. It’s a leading indicator of economic health – businesses are quickly affected by market conditions, and changes in their spending can be an early signal of future economic activity such as hiring, earnings, and investment. That’s it for today. Happy forex trading! Want to see what other traders are doing in real accounts? Check out Currensee. It's free.    |
| Binary Options Setups – August 16-20 Posted: 15 Aug 2010 10:30 AM PDT
This week provides quite a few opportunities for binary options trading. Here are 10 market moving events with potential market reactions and binary options setups. Binary options can be used as an alternative to the traditional stop loss, as a tool for protecting against false breakouts and lots more. One-hour binary options can be used for trading on news events. You can trade binary options at StartOptions, a respected binary options provider. I’ve selected the events and the setups based on study already done for the forex weekly outlooks, and the potential reactions to surprises. Some events collide with each other and could offset each other. These events weren’t selected. Quick explanation:
OK, let’s review the events:
These expected market reactions and setups are general market commentary. This is by no means investment advice. If you're interested in binary options, you're welcome to go to StartOptions. They're a leading binary options provider. This is how it looks on their screens: For our subscribers only we worked a special deal and we got you a $300 free bonus on opening your account. All you need to is deposit $1000 into your options account. Not spend. Just Deposit. Full Disclosure: I'm affiliated with StartOptions.    |
| FXCM Gives Best Possible Price on Weekend Gaps Posted: 15 Aug 2010 06:42 AM PDT
On weekend gaps, if the price at the opening is better than your limit, you’ll get a deal only at your limit, and not the best possible price in the market. This applies for most brokers. Such gaps occur also on surprising news releases. Now FXCM commits to give the best possible price – positive slippage. Here are the details, with an example. Do you think that regulation is necessary here?
An example of positive slippage On Friday, June 18th, EUR USD ranged between 1.2340 and 1.2416. Let’s say that after the pair went towards the bottom of the range, you went long at 1.2365 and left with an order to close the position at 1.2410, under the daily high. Time passed by, and the markets closed with EUR/USD at 1.2388, leaving you with an open position. Over the weekend, fresh optimism arrived at the markets, and the opening price for EUR/USD was 1.2443 on Sunday, June 20th. With many brokers, your order would trigger at 1.2410, closing a profit of 45 pips. But this price wasn’t available at this time. The price was 33 pips better. Now, traders of FXCM would close this position with 78 pips of profit – much better. As far as I know, this improvement to limit and limit entry orders isn’t common in the forex industry, and is usually limited to ECN brokers. By adopting this approach, FXCM’s No Dealing Desk leads the way for other brokers. FXCM is one of the biggest brokers out there. Positive slippage happens more often than you think This “positive slippage” practice is common in the stock markets, but is quite new in forex. The continuity of trading in forex makes these cases less common than with stocks, but as we’ve seen recently, weekend gaps happen many times. Gaps occur also on big news events. GBP/USD jumps in both directions on news events, and so does USD/CAD. The Euro made leaps on credit downgrades and also on surprising US data. Further reading:
Full disclosure: FXCM is one of the advertisers on this site, but wasn’t involved in this article. I’ll be glad to report about additional brokers that support positive slippage. Want to see what other traders are doing in real accounts? Check out Currensee. It's free..    |
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