Trading According to Elliot Waves

Elliot waves were formulated by Ralph Nelson Elliot in the 1920s. Elliot discovered that the stock market does not behave randomly at all, as first believed.

Instead Elliot waves were able to show that the stock market is specifically dependent on outside factors, such as the attitude of masses.

If the stock market is dependent on something, then it cannot be random. Elliot waves were also used to show that stock market form repetitive patterns that can be likened to waves, thus the name of the tool.

Predicting the market based on Elliot waves - Elliot waves are used to gauge the investors’ (that may be Forex investors or stock investors) psychology, providing clues to questions like how many people will be willing to invest with this type of economy?

What makes Elliot waves more complicated to interpret is that they show that the market does not react to outside factors in the same way every time.

Because the effects on the market move in waves, the reaction can be different the next time around.

With Elliot waves to mark the zigzagging reactions, however, investors can have a better picture of what will happen next.

Are Elliot waves accurate? Elliot waves can still be regarded as both accurate and inconsistent. The waves create the inconsistency.

However, Elliot waves are just probability tools. The results are in “most likely” or “less likely” and not an absolute guarantee.

Forex: Forward Outright Order

A forward outright order is a type of foreign exchange (Forex) transaction in which two parties enter into agreement to trade a currency pair at a future date.

To make this more clear, let's make use of a forward outright order transaction on the EUR/USD currency pair.

Say the current price of EUR/USD is at 1.44 and you enter into a forward outright order with another party.

The two parties will settle on a future date, perhaps weeks or months in the future, to make a forward outright order.

When that date arrives, the forward outright order is carried out and the two parties complete the transaction based on the EUR/USD market price on that date.

In other words, the two parties enter into a forward outright order contract to trade currencies in the future, no matter what the prices may be.

When you trade using forward outright order transactions, it is important to be wary of market volatility. If you aren't careful, a forward outright order can lead to large losses.

When successful, however, forward outright order transactions can reap large profits. Basically, your future outright order gains or losses will be determined by the change in value of the currencies over the time of the contract.

Forex Trading Hours or Sessions

Forex trading is one of the most risky activities in the market. In just a span of a short time, you can win or lose everything.


This is why when you are planning to engage in forex trading, you have to know a lot of important things about it. One of the most important things you have to be knowledgeable about is the forex trading hours. Forex trading hours refer to the time when forex trading is active.



Forex trading hours - When is forex trading active? Currencies are traded 24 hours a day, five or more days a week. This goes without saying that forex trading doesn't stop the whole year round. Yes, there are closing time in many countries, but because time is different from one part of the globe to another, forex trading hours overlap.



Best forex trading hours - As forex trading hours never stop, does it mean you can trade currencies anytime you want? Of course yes. But you have to keep in mind that there are forex trading hours when the exchange is as its peak.



The peak forex trading hours are usually those times when the forex trading hours of many countries overlap. If you trade during the forex trading hours when currency exchange is in its peak, you will get better chances of obtaining greater profits.

Major Forex Economic Indicators

Forex traders make use of forex economic indicators to help them decide what step to take in forex trading.


Forex economic indicators are statistics and other financial and economic data from government and private sectors. These forex economic indicators are what determine the course of the economy.


Major forex economic indicators - GDP, or Gross Domestic Product, is one of the major forex economic indicators. This is the sum of the services and goods produced by a nation or country.


The GDP determines the pace of the economy's development. The Consumer Price Index (CPI) and the Producer Price Index (PPI) are also among the forex economic indicators.


The former includes taxes and consumer fees associated with goods and services purchased by consumers, while the latter refers to selling prices. The Industrial Production is also one of the important forex economic indicators. It measures the change in the production of various industries of a country.


What to do with these forex economic indicators? Government and private sectors publish data about forex economic indicators regularly. This is why you have to know the date of the release of these forex economic indicators. You must understand the data as a whole. The most important thing is for you to know the relationship among forex economic indicators and how they work as a whole in influencing the economy, especially the forex trading market.

Forex Scalping basics

Forex scalping is also also known as quick trading because this strategy is done within a very short term.

In forex scalping, the trader's position is allowed to last for a matter of seconds or minutes. Unlike the traditional forex trader, a scalper does not concern himself or herself with economic trends. Rather, he or she reacts according to what the chart exhibits at a particular moment.

Tools used in forex scalping - The success of forex scalping basically rests on the scalper's evaluation of chart indicators within a short period of time. Because of this, forex scalping can also be very exhausting. To help those who want to engage in forex scalping, special software can be used. An automated system can be used to react to predetermined parameters.

Why use forex scalping strategies - Forex scalping is done in order to earn profit without making a big risk. With forex scalping, a trader can make a small profit with reduced risk.

And if scalpers increase the per pip value, they could make some profit as great as those of traditional traders. This goes without saying that forex scalping can be profitable without being too risky, although you have to need to have good trading experience in order to successfully pull this strategy off.

10 Reasons to trade Forex

The forex market is one of the most popular in the global market. Find out the reasons why many people opt to trade forex.

1. The forex market is always available.

The forex market is open 24 hours a day, 5+ days a week. This accessibility attracts many investors. If you trade forex, you can do so anytime you want to.

2. The forex market is enough for a large number of people who want to trade forex.

There are rooms for everybody in the forex market. This is because the forex market is unmatched by any market in terms of size.

3. Great profits await you when you trade forex.

Trading forex is highly profitable if you know how to play your cards well. Within a short period of time, you can actually gain millions.

4. You can expect equality and fairness when you trade forex.

The size of the forex market makes it impossible for specific institutions or groups to hold and manipulate it. Because of this, equality and fairness always prevail when you trade forex.

5. There is the possibility of earning large profits even if you don't have lots of money to start with when you trade forex.

When you trade forex, you can obtain great profits even if you start off with a small amount. This is because the forex market allows leveraging.

6. The forex market is known for its transparency.

One of the good things you can enjoy when you trade forex is the transparency of the forex market. When you trade forex, what you see is what you get.

7. You are your own boss when you trade forex.

If you choose to trade forex over being employed, you won't have to face the pressure of meeting deadlines set by your boss. When you opt to trade forex, you can work at your own pace.

8. Higher returns can be gained without too much effort if you trade forex.

If you choose to trade forex, you can have higher returns without getting yourself exhausted.

9. Trade forex and you can have more time with your family.

You don't have to trade forex for 24 hours to gain profits. You can just wait for the peak hours to trade forex.

10. You can trade forex even if you're on vacation. If you're on the go, you can still trade forex as long as you're connected to the Internet.

Trading Forex - do it in a SINGLE CLICK

With most of the major currency pairs moving sluggishly during the Asian Forex trading session, the only currency that did well at Forex Window is AUD. This is because of the consumer spending report released yesterday indicating 1.7% rise in October further improving the consumer confidence in AUD.

USD
USD trade weakened in yesterday’s New York session after the statement of Russian Finance Minister that he was expecting the continuation of the reserve diversification.
Further downturn in the currency was restricted for the reason the US equity market failed to rally and indicating the short-term risk aversion response giving time to the USD to recover its losses. The equities dropped to -0.3% with bonds also trading at lows mystifying the risks in the trading.
Yesterday’s USD trade was the fourteen-months low with gold trading again at its peak. The consumers are seeking buyers for earning maximum profits from gold.
According to the morning briefs, the crude oil prices are still getting the good market support in spite of expectations of increase in the crude oil gains depending on the DOE crude oil inventory data to be release on tomorrow.

Today’s US Trading Events: FOMC meeting minutes and US September Retail Sales Data release are the awaited events of the day.
EUR/USD spot at 1.4845 traded with initial support of 1.4646 trailed by 1.4481 and initial resistance of 1.4908 trailed by 1.4980.
USD/JPY spot at 89.85 traded with initial support of 89.35 trailed by 88.01 and initial resistance of 91.63 trailed by 92.53.
GBP/USD spot at 1.5915 traded with initial support of 1.5450 trailed by 1.5296 and initial resistance of 1.6120 trailed by 1.6207.
AUD/USD spot at 0.9075 traded with initial support of 0.8985 trailed by 0.8866 and initial resistance of 0.9130 trailed by 0.9206.
OIL/USD spot at 74.72 traded with initial support of 72.15 trailed by 71.21 and initial resistance of 73.94 trailed by 74.79.
With these currency pair updates and USD trading reaction at the Forex window, let’s wait for the upcoming data releases today and then analyze the impact of the trading indicators.
Resource box: The article puts forth information about the Forex trading figures and performance of the USD against major currencies.

Is the crisis over? Forex traders, beware!

So the world is beginning to think that it is all over and done with, that the financial crisis of 2008/9 which conjured up that of the 1930’s is waning and growth will soon return to the land. And for a while, I was thinking the same thing – and beginning to scare myself into believing what the politicians and biased TV pundits (analysts) have been saying.


But not anymore.


Rumor has it that we all should be on the lookout for something that I warned about several months back – and the rumors are coming out of the Federal Reserve in the US and Bank of England as well.


It seems as if much work is being done (behind the scenes so as not to cause an alarm) , to stave off a commercial real-estate meltdown which resulted from the drop in property prices coupled with lack of capital and consumer spending.


Their efforts could quite possibly be thwarted by a large spike in foreclosure rates in the US and England. Many of these properties had mortgages on them that were a part of the Wall Street derivatives market – the same sort of investment tool that many credit with causing this crisis to begin with, but on a much grander scale.


According to the Wall Street Journal, $700 Billion worth of these commercial mortgage backed securities are in serious trouble – and a collapse of them would cost close to five times that number to manage.


The effect that this would have on Forex trading is profound as just as the economy seems to have recovered from the tsunami, the aftershock comes and sets back all that has been done.


The US Dollar and British Pound are very vulnerable, especially since they have spent so much time and effort playing down the amount of damage being done – while all along the crack was actually getting wider and spreading.


Not only could a meltdown in this sector, which is inching closer to reality, harm the economies – it will adversely affect the currencies as governments spend more money they do not have to fix it.


GBP - The British Pound Sterling rose on Friday, supported by data that showed the UK economy contracted at a slightly slower pace than was initially expected. Analysts had expected a .8% fall for the quarter but were surprised with a .7% decline.


Despite the good seemingly upbeat news, the British economy still fared much worse than other industrialized countries. France, Germany and Japan have all emerged from recession during the April-June period.


At the close of the Forex market, the Sterling was -.09% to the US Dollar, up .2% to the Euro to .8789, up.02% to the Swiss Franc to 1.7236, up .25% to the Japanese Yen to 152.18 and up .3% to the Canadian Dollar to 1.7753.

Forex Blog: Some smart opportunities

The Australian and New Zealand Dollars have been fairing pretty well these past few weeks.

Optimism about the state of the economy and the transparency of government efforts to save what they can of their thriving commodity export business has done them well.

Forex traders are aware of the highs being made by these currencies, and specifically at the US Dollars expense.

The recent sale of US Dollars by China had done much to help these countries. With China being the primary buyer of their minerals and metals, the sale of US Treasuries signals China’s unwillingness to stop their rampant buying.

I personally feel this is a mistake but I am glad they are doing it as it is helping the currencies I like to trade the most. The problem I see arising in the near term though is the rise in prices of core materials.

The Chinese can't continue funding their purchases by selling off their US reserves, it will only serve to hurt the value of the Dollar in the long run – and as holders of 3 Trillion Dollars worth, it is a significant amount that they have at stake.

China needs to come to terms with the state of the economy and slow down on their spending right now. This can help them in two ways:

1. The amount of buying they are doing is causing increased demand which is driving up prices, if they slow down, prices fall and they can save money.

2. The amount of money they are spending stockpiling raw goods could be better spent taking up larger stakes in the US Dollar, by doing so they increase their political influence and are in a better position to get what they want out of the US.

As well, it will help their cause with World Bank members in their efforts to establish a global reserve currency.

Online Forex readers know all too well that things are not what they seem. The recent stock selloff in Asia has traders nervous.

It would go a long way to calming markets if China were to step up and seize the moment here – it could also change the way people think en masse about the US Dollar and Renminbi as a valuable trading tool.

Online Forex Blog: China and the USD

As I was reading a newspaper, came across a well muted tidbit of information that, if it continues, could serve to hurt the Dollar in the near and demolish it in the long term.


China, the US’s largest investor, sold off a significant chunk of its T-Bills in June. Now, in recent months there has been much talk from China about their concerns regarding the US’s debt load, but trust me on this, they would not be selling the debt at this time if they did not have to.


If they did, they stand to lose a serious amount of money if the prices go down based on the sheer volume as well as psychological implications of the act.


According to other sources I read after my curiosity was peaked, it seems as if the Chinese government is spread a bit too thin right now – having increased their feverish purchase plan of almost every natural resource in the Eastern hemisphere while investing heavy in mineral and oil excavation Africa as well.


In an economy that thrives on exports to be spending as large as they have been under conditions that are being equated with the Great Depression is just plain crazy – and culturally it was probably not easy for them to stop when they realized this.


Culturally, the Chinese are all about not making mistakes or miscalculations and while they were saying things were fine, they were really not.


The theory here is that the Chinese need to unload some of the 3 Trillion greenbacks they have to raise cash – by no means am I saying that China is in trouble, but they are not as well off at this point as everyone thought.


If this is the case, Forex traders can worry if they are long Dollar positions. The fact is, the Chinese have so much impact on the Forex at this moment based solely on their reserve levels, that the hint of a selloff would panic the market.


I don’t believe the Chinese want to hurt the Dollar, I will say this a thousand times, it is not in their interest to do so.


I just think that their needs might inadvertently lead to this and there is nothing anyone can do about it. For now, I will keep my nose in the online Forex world and ears to the whispers – perhaps I can help make more sense of this as the weeks go by.

Forex Market: some basic facts

What is the Forex market? The online trading environment for foreign exchange is the largest, most dynamic capital market in the world, with about 5 trillion US Dollars traded in it daily.

The Forex market is a continuous, 24/5 marketplace, open from Sunday afternoon (4 PM EDT) through the close of the US markets on Friday (5 PM EDT).

The Forex market is where investors can trade one currency against another currency. What is a currency cross?

All trades take place between two different currencies (currency pair), resulting in the purchase of one currency and sale of another.

For example, when you trade EURUSD, the currency cross is Euros versus US dollars. One currency will be bought (long position) while the other currency is sold (short position). What is the Bid-Ask Spread?

The bid-ask spread is the buying and selling spread between two currencies. The bid price is the price at which the currency is sold. The ask price is the price at which the currency is bought.

The difference between the two is known as the bid-ask spread. The bid-ask spread differs between currency crosses with more common crosses (majors) having tighter spreads.

"We shall say that the recession ended in July or August, maybe September"

The positive financial data that was flowing during the last ten days to the US, are indicating that the end of the recession might be over seems to be more consistent this time.

If you have been reading my previous posts, you surely know the Forex markets have been going up and down consequently to new positive data publishes at the US.
Yesterday said Laura Tyson, adviser to President Barack Obama, that "We may have hit stability, we may be in the beginning of an upturn".

From his side, Paul Krugman, a Nobe Prize winning economist said that the deepest slum since the Great Depression might be ending: "it is quite possible, though not certain, that retrospectively, we shall say that the recession ended in July or August, maybe September".

Both key persons said the above words in the Malaysian capital, Kuala Lumpur. Krugman based his assessment on last week report issued by the US government, that showed the pace of job losses at the US was slower than expected, and the fact that the unemployment rate at the US dropped for the first time in 15 months. Another datum that corroborated this stand is that manufacturing, although still contracting, is on the mend.

So this time, it does seem to me that the situation is getting rosier… On the other hand, let's not forget that psychological factors are also at play here, who doesn’t want a crisis to be over, whether at home, at your personal life, your private business or the global financial market ?

Forex: Some info about The Mexican Peso

Forex Blog: The Mexican Peso

The Mexican Peso has been the worst performing currency on the past year. Forex traders and investors are giving up on Felipe Calderon, the Mexican President, on implementing the tax measures needed for controlling the deficit in the budget.

Mexico's economy, which is the second biggest economy in Latin America after Brasil, has shrunk 11% on the second quarter of present year.

Among the factors that influenced on this, were the swine flu outbreak and the closing of factories along the border with the US.

According to the Central Mexican Bank, the Mexican economy is expected to contract 7.5% this year, the worst since 1932.

Forex traders and investors are becoming a bit skeptic about the Mexican forex market, since they don't know exactly when the local problems will be fixed. They predict that the Peso will become unstable now that Calderon lost some seats on the congress elections that, fact that will make it even more difficult to support a law for implementing higher taxes.

Forecasts claim that the Mexican Peso will go down against the dollar in about 12.7% to 15% (the rate today is 13.1024).

Over the past year, the Peso has going down against the dollar in a 24%, and it has been the worst performing major currency over the past decade.

All the reasons for Forex traders to be optimistic

Forex BLOG: Some strong indicators about the economy...


The yen has declined today and the pound roused following Alan Greenspan evaluation that the recession has come to it's end and reports about HSBC Holdings making unexpected profits.


Greenspan, the ex Federal Resrve chairman, also said (during an interview he gave to ABC) that the economic grow might come at a faster path than expected (he predicted a 2.5 growth in the current quarter).


The Japanese yen fell against the major currencies, following a demand for higher yielding in th Forex market; on the other hand, a report from the "Institute for Supply Management" reports that the US manufacturing has shrank on the past month of July at the slowest rate in the past year.


At 7 am, NY time, the yen went down 1% against the pound (159.76), in a 0.5% against the euro (135.70) and 0.3% against the dollar (94.97).


Additionally, currencies influenced by the prices of raw materials, like the Australian dollar, have gone up following an appraisal that commodities will go on rallying on 2010, as the global recession resumes.


This forecast has been taken most seriously, since it has been given by Nouriel Roubini, the NY University financial expert who predicted the financial crisis.


Another report has indicated that manufacturing has expanded in July – the China Purchasing Managers' Index – CLSA has reached 52.8, the highest level in a year.


What can I say? it seems to me that this time the indicators that the recession is getting to its end are a bit stronger than on past occasions, so - all the reasons to be optimistic...

Global recession might end - and the dollar weakens

Following signs that global recession might end, the dollar weakens to lowest rate of the year.
Once again, following optimism about an imminent global recovery, the dollar has declined, reaching its lowest level of the year (this is a common "symptom" in the forex markets, as the greengack is regarded as a "refuge", "low-risk" currency, preferred by traders and investors at times of uncertainty).

The Dollar Index, used by the ICE futures exchange in order to track its value against other major currencies was 78.22 on Friday, the lowest rate since December 18th. The index has dropped 2.3 percent in July.

As well, on Friday, the US dollar went down 1.3% against the euro. This was an outcome of a report that showed that the US economy has contracted in a lesser amount that expected by economists, indicating, MAYBE, that the global recession is coming to an end.

Another positive indicator is that the GDP of the US contracted "only" 1%, after shrinking 6.4% in previous quarter, the highest rate on the last 27 years, as reported by the Commerce Department.

Let's not forget as well the things that Ben Bernanke, the Federal Reserve Chairman, told Congress last month about maintaining a "highly accommodative" monetary policy, and his words to the Financial Services Committee about the economy making "tentative signs of stabilization".

What can I say, I do hope from the bottom of my [forex trader] heart that this time the signs are authentic and we are not talking about another false alarm, but even so, we, the forex investors will keep ourselves informed so that we shall know how to cope with every situation!

Information - a fundamental factor for becoming successful Forex Traders

Forex Blog: it's all about the info, falks

As I already stressed on previous posts, in order to become a successful trader, it is fundamental and mandatory to keep informed and posted about the financial, macroeconomic and political factors.

I don't know whether you are aware of the fact, but there is a specialized team of academic experts that are responsible for defining whether there is a situation of depression based on specific indicators.

Turns out the depression definitions are also a "scientific" business (as finances itself), that is till the day thousands of experts are astonished and taken by surprise by a huge hurricane that took them completely unguarded.

The data collected by this experts is open to everyone through the NBER site (National Bureau of Economic Research) and, among other subject covers the field of "Historical Recessions and Recoveries, the NBER Business Cycle Dating Committee" and "Economic Indicators and Releases".

Just FYI, I have just visited the site and there is still no mention of the present recession (latest event is "The December 2007 peak".

Those definitions are based on a number of factors that include: unemployment, industrial production and output, personal incomes and business sales.

The forex market is, naturally, influenced by the data published on prestigious sites like this, as well as from all additional macroeconomics factors and fundamentals.

But let us remember that always, always there are concealed unexpected factors that cannot be predicted beforehand, and the best example is… have you guessed already? The present recession caused mainly by a group of credit instruments offered widely to the public with the main idea of doing big profits.

Types of Forex Orders

Let's remember that one of the advantages of the Forex market is that it avails traders to follow the "movement and momentum" of the market also when they are AWAY from the computer.

let's remember that the forex market is active 24 hours a day. ORDERS are a trading tool that avails us all to trade while not being there!

Among other things the forex orders will help you to: follow and implement a given trade strategy, limit risks in highly volatile markets, take advantage of short-term changes and currency fluctuations, follow a trading discipline, control and avoid losses, and, protect your profits.

The implementation of orders in currency trading is cardinal, since it will help us to control the impact of adverse movements, the main types of orders are:

a) Take Profit Order – this order permits us to LOCK GAINS when having an open position (i.e. a position that already exists)

b) Limit Orders – the limit orders, are in fact a kind of Take Profit orders, with the onlhy difference that while the first ones require a given open position, the limit orders permit you to open new positions or add to existing positions.

c) Stop Loss Orders – this order permits you to "stop losing money", plainly as it names suggests, they close out an open position that is losing money.

d) Trailing Stop-Loss Orders – a trailing stop loss order is a stop loss order defined at a specific number of pips from the entry rate.

e) One cancels the others (OCO order) – this is a stop loss order combined with a take profit order, the position will stay open till one of the orders levels is reached by the market, closing your position.

In a way, all these forex orders are a kind of "guard" that will allow your positions to spot avoiding you to lose unwanted sums of money.

These orders are also highly recommended for traders that tend to have a "gambling" tendency, i.e. are not able to stop a position when it starts losing, hoping the market will raise again, call it a Forex Baby Sitter if you wish!

3 basic keys for Forex Trading

And today in my Forex blog: Some fundamental ideas and speculations about Forex Trading.

Forex is mostly about speculating about the value of a given currency versus another.
"Speculation" is not a bad world when it comes to the world of forex trading, it means to take a risk that involves money while hoping to make a profit.

Yet speculating at the forex is a sort of investment that takes place in a relatively short time (in this aspect it's different from the traditional sort of investment on bonds or the stock market that take place over a longer period of time). And what would make that speculation work?

1. Being Informed.
2. Having a Trading Plan.
3. Not to take things personally.

1. Being Informed – everybody knows that information is the key factor that moves financial market, particularly in the case of Forex markets that involve a mixture and combination of currencies which are all affected by their own economies.

One way of keeping informed is to learn about the "Fundamentals"; fundamentals are defined as the compilation of news and information that make you possible to understand the macroeconomics that affect a given currency, they are based on "dry data" that includes: economic reports, interest rates, international trade tendencies, monetary policies and investment flows.

2. Forging a personal Trading Plan – decide what will be your personal "style" when trading, i.e., schedule your preferred working hours and timeframe, optional currency trading pairs, risk appetite, main trading concept (whether a fundamental or technical trader).

3. Not to take things personally – as in any other business or expertise, if you want to become a professional, you should avoid at all times to take things personally!

Forex - What exactly is Margin ?

Margin is defined as "the amount of equity required in a trading account in order to keep a position open", as a matter of fact; it is a kind of "faith deposit" or warranty that the trader does in order to ensure him against possible losses.

The margin allows traders to open positions with an higher value that the sum deposited in their account. A margin account is also defined as trading on a leveraged basis.

Today, most online forex sites give the possibility of a 200 times leverage. The equity given above the margin that is requested in a given trading account functions as a security or "warranty" on the trader's behalf.

In case the trade loses on a specific position to the point that the equity is below the minimum margin requirement, then, a margin called will take place. In most of the cases, at the forex arena, the trader will be requested to deposit more funds before the margin call, or else, the position will be closed.

The margin call is usually alleged as a "margin out" call, since no other calls are performed prior to liquidation. Another factor to have in mind is that the possibility of being margined out is proportional to the number of open positions (i.e., the more open positions, the easier is the account to get a margin out call).

Why a Margin? We have to keep in mind that leverage has two sides, on one hand, it can lead to profits and increase the investment return, but, on the other hand, without an appropriate risk management, it may cause rapid and significant losses.

We should remember that most forex online sites offer leverage, yet, the trader should be aware of the perils of "over-trading" and should learn how to manage an overall risk.

Listen forex traders, it's all about contradiction

I thought recently the issue of contradictions and inconsistencies on the financial and economic arena…

Seems that the economic reviews of key financial figures like Ben Bernanke (the president of the Federal Reserve Bank) or Jean Claude Trichet (the president of the Central European Bank) are a bit confusing for the forex traders these days…

Instead of expressing and assessed and found-based view, both these man have given contradictory prognoses relating to the crisis and the expected recuperation time… Seems like our "financial doctors" are giving a dual prognosis….

A clear example of what I am saying is the review that Bernanke gave yesterday at the Congress, where, from one side he stated that he expects the economy to start recuperating on the last part of the present year, and in the other hand, he pointed out the rising unemployment rate in the US economy and tight credit market to which most consumers are not used to…

As a direct result of Bernanke's review in Congress, the dollar began to rise on Tuesday, after beginning the day session with lower rates… We are already acquainted with the typical trend of the dollar going up consequently to non positive reports concerning the US econom.

When the reports are good and Currency trading specialists begin to feel more optimistic, they tend to invert on other currencies that are considered has having a more risk and yielding better gains.

Personally, I find it a kind of paradoxical that negative data affecting the US affects the US dollar in a positive way, but still - there are so many illogical facts on the financial and the forex market.

Anyway, as a result of this dual and contradictory messages coming from key figures, the forex traders are developing an attitude of skepticism and suspicion towards the statements given by, say, the presidents of the major international banks…