Monday, December 3, 2007


* The above trades and all other trades shown in this User Guide are fictitious. They have been placed on a test account for demonstration purposes only.
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Global Demo Trading Contest -

[ Monthly Contest Request ] [ Ultimate Contest Request ]

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Why trade in the MG Demo Contest?

The MG Demo Trading Contest is an on-going competition open to global contestants which allows participants to operate a virtual currency trading account with the following benefits:

  • Further prepare traders for live trading.

  • Chance to win $1500 or $3000 contest credit to begin live trading ($3000 contest credit applies to the Ultimate Demo Contest participants)

  • Receive free access to the Charts & News Software for the length of the contest, a $44.95 per month value.

  • Low cost to enter: $44.95 per month for the Monthly Contest or $500 per year for the Ultimate Demo Contest

  • Ease of funding by wire transfer, check or credit card from anywhere in the world.

  • Trade from anywhere through Internet, your web-enabled PDA or Mobile Phone.

Click Here to view Contest Rules

To View Current Contest Standings
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Forex Demo Account

A demo account is a valuable instrument that can introduce a novice to online trading or allow an industry veteran to sharpen his/her trading strategies.

  • Demo-Trade via MG DealStation in a Real-Time Environment
  • 30-day free trial of the Charts & News software and Dow Jones Newswires live feed
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EURUSD1.4652
USDJPY110.34
GBPUSD2.0648
USDCHF1.1282
AUDUSD0.8828
USDCAD1.0024
Crosses
 time: 10:31 NYT

EURUSD 60MIN

OPEN AN ACCOUNT
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How to Get Started


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People are introduced to the exciting world of foreign exchange in many ways: friends, current events, newspapers, television, and many others. For those of you who are new to forex, the following guidelines cover the basics of currency trading.

Step 1: "Practice makes perfect"

Demo trade. The demo account was designed to help traders gain familiarity with the speed and movements of the market. When you are demo trading, you should learn how to: 1) place market orders to enter a trade, 2) place stop-loss orders to protect your positions, and limit orders to take profits, 3) place OCO orders and If Done Orders to execute more advanced strategies.

DealStation Video-Tutorials

The MG DealStation tutorials are designed to serve as audio-visual guides for traders to gain familiarity with the MG DealStation Trading Platform.
Downloading the DealStation Trading Platform
Logging-in to the DealStation
Placing a Market Order
Placing a Stop Order
Placing a Limit Order

More...

Step 2: "Study, Study, Study".

Forex traders use fundamental analysis, technical analysis, quantitative analysis and sometimes a combination of all three to make their trading decisions. Fundamental analysis involves the use of economic, financial and political news to determine trading decisions. Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Quantitative analysis consists of the use of preset statistical models and properties in quantifying price formations such as averages, retracements as well as identifying oversold and undersold situations.

In order to help novice and experienced traders alike, MG has developed www.forexnews.com, a leading site on foreign exchange analysis, news and education. Comprehensive previews and summaries updated 4 times per day, insightful editorials covering the latest market developments and an open forum for discussing trading tips and ideas, are just some of the many features of Forexnews.com and MG's commitment to educating and informing Forex participants.

Step 3: Manage your money wisely.

You should always be aware of the amount of money in your account before placing a trade. If you think a long-term trend is developing, then you should consider whether you have enough funds to maintain your margin and withstand any movements against your position(s) that may occur. We encourage everyone who opens an account with us to ask themselves the following questions prior to entering each trade:

1) How much am I willing to risk?
2) What is my upside and downside potential?
3) What are the market conditions? (Is the market volatile or calm?)
4) What is the logic behind entering this trade?
5) When can I conclude if the assumptions/logic behind the trade are/is correct or wrong?

Before entering an order, you should consider both your entry and exit points. One of the mistakes most commonly made by traders, especially new traders, is letting emotions get in the way of their strategy.

Step 4: Stay Connected:

It is impossible to follow the forex market 24 hours day, 7 days a week. For better management of your account, we encourage you to use our Wireless Service and alert!FX™.

Step 5: Open a Live Account.

If you feel ready to trade this market, fill out our application forms and submit them today. Since the emotional factor may be higher than it was when you were demo-trading (as you are now committing real money), it is essential that you develop an effective strategy while demo-trading and plan to abide by it when trading your live account.

We hope you enjoy trading with us and wish you the best of luck!
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What is Forex

What is Forex (Foreign Exchange)?

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Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial Group’s combination of low margin and high leverage has changed the way the Interbank currency market operates. We have done this by opening the doors of Forex to retail investors, giving them the professional tools and services needed to trade effectively in an independent atmosphere.

MG Financial Group, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.
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Forex stories from the past 24 hours:

Click on any headline for complete story

  • Dollars Destiny Depends on NFP
    Dec 3, 2007 5:00 AM - DailyFX
    Talking Points: $ Dollar?s Destiny Depends on NFP € Euro - No Hike in Sight ¥ Yen Loses Out On Return to Risk - Can This Sentiment Hold? ? Cable Breaks Down On UK Data - Will the BOE Cave and Cut Rates? ? Swissie?s Fortunes Quickly Reverse Despite Strong Data C$ Canadian Dollar Struggles To Keep Above Parity With Dollar AU$ Aussie Awaits RBA Rate Decision NZ$ New Zealand Dollar Rallies Ahead of RBNZ Rate Announcement more ...

Older Forex stories (from the past seven days)
Click on any headline for complete story

  • AUDNZD Range's Technical Appeal Looks To Fend Of Fundamental Wave
    Dec 1, 2007 1:14 AM - DailyFX
    There is considerable event risk for the majors (due to heavy-hitting US data and the GCC summit), carry pairs and a number of currencies whose central banks are scheduled to release rate decisions. To balance some of this risk, we will look to range trade AUD/CAD, a pair that is comprised of two commodity exporters whose central banks have a hawkish lean. Both the RBA and BoC are scheduled to release rate decisions next week, though neither is expected to shift their benchmark target. more ...
  • FX Radio: Dollar Unexpectedly Rallies into Friday's Close, Can it Continue Through Next Week?
    Dec 1, 2007 12:22 AM - DailyFX
    more ...
  • British Pound Continues to Weaken on Softer Consumer Confidence
    Nov 30, 2007 9:23 PM - DailyFX
    With financial market turmoil taking a big toll on the UK economy, it would be surprising if consumer confidence actually held steady. more ...
  • Canadian Dollar Hits Parity, Australian and New Zealand Dollars Extend Losses
    Nov 30, 2007 9:20 PM - DailyFX
    The Canadian dollar fell back to parity with the US dollar after the release of their GDP numbers. more ...
  • US Dollar: What to Expect in December
    Nov 30, 2007 9:11 PM - DailyFX
    - 5 Central Bank Meetings Will Make for a Busy Trading Week in the FX Market - Euro Extends Losses Despite Strongest Consumer Price Growth Hits 6 Year High more ...
  • EURUSD: Expect Big Moves, Both Down and Up
    Nov 30, 2007 5:47 PM - DailyFX
    The EURUSD was rejected at 1.5000 last week and many traders are calling for a return to the psychological level. We do expect the EURUSD to challenge 1.5000 again?but probably not until 2008. From now until then, there will be plenty of trading opportunities on both the bear and bull sides. more ...
  • US Dollar Rallies Sharply on Fiscal Year End, but Momentum May Slow
    Nov 30, 2007 5:20 PM - DailyFX
    The US dollar rallied to fresh two-week highs against the euro and other major currencies, as reported fiscal year-end squaring led major corporations to cut overextended dollar-short positions. Unexpected intraday volatility pushed the greenback sharply off of recent lows, with the trade-weighted US dollar index hitting its highest levels since November 20. Disappointing US Personal Income and Spending reports were not enough to deter the surprising dollar rally, and indeed it seems as though markets largely ignored the fresh fundamental developments. more ...
  • Euro Commodity Crosses Correcting After Big Run
    Nov 30, 2007 5:04 PM - DailyFX
    more ...
  • Will Monday ISM Manufacturing Data Signal a Contraction in the Sector?
    Nov 30, 2007 2:12 PM - DailyFX
    DEC 3 US ISM Manufacturing (NOV) (15:00 GMT; 10:00 EST) US ISM Prices Paid (NOV) (15:00 GMT; 10:00 EST) Expected: 50.5 Expected: 66.0 Previous: 50.9 Previous: 63.0 more ...
  • New Zealand .7800 Potential Resistance
    Nov 30, 2007 12:55 PM - DailyFX
    Commentary: The large 5 wave advance from .6639-.7891 indicates that the larger trend is up but a larger correction is expected before a resumption of the uptrend. The decline from .7891 has yet to even reach the 38.2% level of the previous rally. As such, the decline from .7891-.7435 is most likely just wave A in a larger A-B-C decline. more ...
  • Japanese Yen Runs Into 21 Day SMA
    Nov 30, 2007 12:54 PM - DailyFX
    Commentary: The USDJPY rally is likely coming to an end near term. There are now 5 waves higher from 107.20, indicating that the USDJPY has more upside potential, but not before a corrective decline that likely sees at least 109.46. A push to the 38.2% of 117.93-107.20 at 111.30 is still very much a possibility but at this point, downside risk outweighs upside potential. more ...
  • British Pound Decline About to Accelerate
    Nov 30, 2007 12:53 PM - DailyFX
    Commentary: The decline that we have anticipated may finally be underway. The favored count treats the decline from 2.1160-2.0522 as larger wave 1 (or A) in a bear cycle with the rally to 2.0844 as wave 2 of the same degree. The decline to 2.0353 was wave 1 of 3 and the choppy rally from 2.0353 to 2.0831 can be counted as a triple zigzag, which fits as wave 2 of 3. more ...
  • Euro Bearish Pattern Unfolding
    Nov 30, 2007 12:52 PM - DailyFX
    Commentary: We are still looking for a larger decline. There are 2 counts that we are following closely; "the decline from 1.4967 has either completed the first leg of a flat correction (3 waves down to this point) or a more bearish structure is unfolding now and the decline from 1.4908 is wave 3 within a 5 wave bearish cycle from the top." Both scenarios remain valid at this point but we favor the former corrective scenario. more ...
  • Swiss Franc 1.1100 Good Entry Point
    Nov 30, 2007 12:51 PM - DailyFX
    Commentary: We maintain that price is expected to challenge former congestion at 1.1300 in the next few weeks (if not sooner). "The rally from 1.0886 is a beautiful 5 wave advance. 5 Waves higher indicates that the trend of the next larger degree is up so we should expect at least one more 5 wave rally, but not before a corrective setback. more ...
  • Canadian Dollar Pattern Unclear Near Term
    Nov 30, 2007 12:50 PM - DailyFX
    Commentary: We have been looking for a much larger setback but the wave structure at small degrees of trend indicates additional bullish potential. It is also possible that a triangle or some other corrective pattern is unfolding from .9992. A bearish outcome remains possible as long as price is below 1.0002. more ...
  • Australian Dollar Little Changed
    Nov 30, 2007 12:49 PM - DailyFX
    Commentary: There is no change to the AUDUSD pattern. "The decline from .9399 could be just an a-b-c decline. This is suggestive of a resumption of the uptrend and eventual rally through .9399. The other count is bearish and suggests that an a-b-c flat correction is unfolding from .8753. In either case, price is expected to exceed .9068." more ...
  • GBPUSD Decline Could Accelerate Soon
    Nov 30, 2007 12:42 PM - DailyFX
    - Euro Bearish Pattern Unfolding - Japanese Yen Runs Into 21 Day SMA - British Pound Decline About to Accelerate - Swiss Franc 1.1100 Good Entry Point - Canadian Dollar Pattern Unclear Near Term - Australian Dollar Little Changed - New Zealand .7800 Potential Resistance more ...
  • Forex News: Asian Equities, Carry Trades Gain Overnight, Euro-zone Inflation Hits 6-Year High
    Nov 30, 2007 11:48 AM - DailyFX
    more ...
  • Euro Attempts to Gain on Hot CPI, Dovish Rhetoric from Fed Chairman Bernanke
    Nov 30, 2007 10:55 AM - DailyFX
    Talking Points - Japanese Yen: Headline inflation rises at fastest pace in nearly a year - Australian Dollar: Exports lead current account deficit to narrow in Q3 - Euro: Euro-zone CPI flash estimates hit 6-year high of 3.0% - Swiss Franc: Stronger-than-expected CPI, GDP raise SNB hike prospects - US Dollar: Little reaction to Bernanke comments, awaiting Personal Income/Spending more ...
  • FX Radio: Dollar Weathers Dismal Housing Numbers, Key Event Risk Awaits on Friday
    Nov 29, 2007 10:46 PM - DailyFX
    more ...
  • Could the Federal Reserve Cut by 50bp?
    Nov 29, 2007 9:57 PM - DailyFX
    - Euro: Modest Downside Risk - Bank of England Offers Emergency Funds more ...
  • Bank of England Offers Emergency Funds
    Nov 29, 2007 9:53 PM - DailyFX
    The British pound has sold off sharply against the Euro and we think that today?s weakness will continue. Mortgage approvals were much lower than expected and Nationwide house prices fell by the fastest pace in 12 years. The housing market is suffering which is expected to translate into weaker consumer confidence. more ...
  • Mild Rally in the Dow Leads to Correction in Carry Trades
    Nov 29, 2007 9:51 PM - DailyFX
    For the first time in the past week, the trading range in the Dow has been less than triple digits. Industrial production and vehicle sales were stronger than expected last month thanks to demand from Asia. Tonight we continue to have a lot of Japanese data due for release including unemployment, consumer prices and household spending. more ...
  • Weaker Economic Data Drives Canadian, Australian and New Zealand Dollars Lower
    Nov 29, 2007 9:48 PM - DailyFX
    The US dollar has rebounded strongly against the Canadian dollar following very disappointing inflation and trade data. The strength of the Canadian dollar has pushed industrial product prices down by 1.1 percent last month and the current account surplus to the lowest level since September 2003. more ...
  • Will Canadian GDP Take USDCAD Above Parity?
    Nov 29, 2007 8:38 PM - DailyFX
    Trading the News: Canadian Annualized GDP (3Q) What?s Expected Time of release: 11/30/2007 13:30 GMT, 08:30 EST Primary Pair Impact : USDCAD Expected: 2.3% Previous: 3.4% more ...
  • US Dollar Stable Despite Sharp Deterioration in Fed Rate Expectations - Reversal Ahead?
    Nov 29, 2007 8:17 PM - DailyFX
    The US dollar showed renewed signs of life through overnight currency trading, but clear disappointments in key Jobless Claims and New Home Sales reports left the dollar offered through the later New York trading session. A report from the US Department of Labor showed that initial claims for unemployment insurance soared to their highest levels in over nine months?signaling a sharp rise in layoffs throughout the domestic labor market. A subsequent Census Bureau New Home Sales report only added to the dollar?s economic woes, with sales plummeting to their worst in nearly 12 years through September. Yet the US dollar remains surprisingly resilient through afternoon trade, gaining against nearly all major currencies at time of writing. more ...
  • USD/CAD: Continues to Signal Further USD/CAD Losses
    Nov 29, 2007 4:47 PM - DailyFX
    USD/CAD Ratio: 1.68 Signal: Bearish more ...
  • COT 11/29
    Nov 29, 2007 4:43 PM - DailyFX
    NZD Signal: 100% Bullish more ...
  • COT 11/29
    Nov 29, 2007 4:40 PM - DailyFX
    JPY Signal: 100% Bearish more ...
  • USD/CHF: Likelihood of Reversal Increases on Changing Positioning
    Nov 29, 2007 4:39 PM - DailyFX
    USD/CHF Ratio: 1.12 Signal: Bearish more ...
  • COT 11/29
    Nov 29, 2007 4:39 PM - DailyFX
    GBP Signal: Neutral more ...
  • COT 11/29
    Nov 29, 2007 4:36 PM - DailyFX
    EUR Signal: Neutral more ...
  • COT 11/29
    Nov 29, 2007 4:33 PM - DailyFX
    CHF Signal: 100% Bearish more ...
  • USD/JPY: Increase in Short Orders Signals Further Correction before Drops
    Nov 29, 2007 4:31 PM - DailyFX
    USD/JPY Ratio: 1.46 Signal: Bearish more ...
  • COT 11/29
    Nov 29, 2007 4:31 PM - DailyFX
    CAD Signal: 25% Bullish more ...
  • GBP/USD: Jump in Long Orders Suggests GBPUSD May Continue Falling
    Nov 29, 2007 4:24 PM - DailyFX
    GBP/USD Ratio: -1.03 Signal: Bullish more ...
  • COT 11/29
    Nov 29, 2007 4:13 PM - DailyFX
    AUD Signal: Neutral more ...
  • EUR/USD: Shift in Positioning Warns of Imminent Reversal
    Nov 29, 2007 4:10 PM - DailyFX
    EUR/USD Ratio: -1.13 Signal: Bullish more ...
  • Forex Positioning Signals Potential EURUSD and GBPUSD Reversals
    Nov 29, 2007 3:23 PM - DailyFX
    EURUSD - Shift in Positioning Warns of Imminent Reversal GBPUSD - Jump in Long Orders Suggests GBPUSD May Continue Falling USDJPY - Increase in Short Orders Signals Further Correction before Drops USDCHF - Likelihood of Reversal Increases on Changing Positioning USDCAD - Continues to Signal Further USDCAD Losses more ...
  • Cable Crosses Correct; Presents Opportunity to Sell Again
    Nov 29, 2007 3:04 PM - DailyFX
    more ...
  • Can Canadian GDP Data Convince the Bank of Canada to Cut Rates Next Week?
    Nov 29, 2007 2:45 PM - DailyFX
    NOV 30 Canadian GDP Annualized (3Q) (13:30 GMT; 08:30 EST) Expected: 2.1% Previous: 3.4% more ...
  • New Zealand Wave C Down to Begin Soon
    Nov 29, 2007 1:09 PM - DailyFX
    Commentary: The large 5 wave advance from .6639-.7891 indicates that the larger trend is up but a larger correction is expected before a resumption of the uptrend. The decline from .7891 has yet to even reach the 38.2% level of the previous rally. As such, the decline from .7891-.7435 is most likely just wave A in a larger A-B-C decline. more ...
  • Japanese Yen Small Wave 4 Correction Ending
    Nov 29, 2007 1:08 PM - DailyFX
    Commentary: The USDJPY rally is unfolding as expected. The dip to 109.68 last night likely completed wave iv of either 3 or C. A rally through 110.48 would satisfy minimum expectations for the rally from 107.52. more ...
  • British Pound Triple Zigzag Correction Complete
    Nov 29, 2007 1:07 PM - DailyFX
    Commentary: The bearish count that we presented yesterday treated the rally from 2.0353 as a double zigzag. That rally has changed into a triple zigzag. "Under the bearish count, the decline from 2.1160-2.0522 is wave 1 in a 5 wave bear cycle. The rally from 2.0522-2.0844 is wave 2. The decline from 2.0844-2.0504 is wave 1 of larger 3." more ...
  • Euro Bearish Near Term to at Least 1.4520
    Nov 29, 2007 1:06 PM - DailyFX
    Commentary: There is little change from yesteday?s commentary. We wrote yesterday that "the decline from 1.4967 has either completed the first leg of a flat correction (3 waves down to this point) or a more bearish structure is unfolding now and the decline from 1.4908 is wave 3 within a 5 wave bearish cycle from the top." more ...
  • Swiss Franc 5 Waves Points Lower (USDCHF Higher)
    Nov 29, 2007 1:05 PM - DailyFX
    Commentary: We wrote yesterday that "the recent turn is either a correction in larger wave 4 within the 5 wave bear cycle from 1.2467 or is something more bullish. Either way, price is expected to challenge former congestion at 1.1300 in the next few weeks (if not sooner)." more ...
  • Canadian Dollar 5 Waves Points Higher (USDCAD Lower)
    Nov 29, 2007 1:03 PM - DailyFX
    Commentary: We wrote yesterday that "the large double zigzag that we proposed may be complete. The USDCAD has run into resistance from former congeston (circled) and the 50% of 1.0866-.9055 at .9961." more ...
  • Australian Dollar Bouncing From Support
    Nov 29, 2007 1:02 PM - DailyFX
    Commentary: Near term, the decline from .9399 could be just an a-b-c decline. This is suggestive of a resumption of the uptrend and eventual rally through .9399. more ...
  • EURUSD Correction To Test 1.4700
    Nov 29, 2007 12:55 PM - DailyFX
    - Euro Bearish Near Term to at Least 1.4520 - Japanese Yen Small Wave 4 Correction Ending - British Pound Triple Zigzag Correction Complete - Swiss Franc 5 Waves Points Lower (USDCHF Higher) - Canadian Dollar 5 Waves Points Higher (USDCAD Lower) - Australian Dollar Bouncing From Support - New Zealand Wave C Down to Begin Soon more ...
  • Forex News: BOE's Blanchflower Calls For Rate Cut, US Dollar Gains Ahead of GDP Revisions
    Nov 29, 2007 11:46 AM - DailyFX
    more ...
  • Cable Tests 2.06 On Dovish BOE Rhetoric, US Dollar Strengthens Ahead of US GDP Revisions
    Nov 29, 2007 11:05 AM - DailyFX
    Talking Points - Japanese Yen: Industrial production rises to record on Chinese, European demand - Australian Dollar: Business investment falls the most in nearly eight years - Euro: Euro-zone retailers suffer despite improvements in German labor market - British Pound: Mortgage approvals falter on tight BOE monetary policy - US Dollar: Strong US Q3 GDP revisions expected, new home sales to weaken further more ...
  • Middle East Council Meeting This Weekend: How Could This Affect the US Dollar?
    Nov 29, 2007 6:25 AM - DailyFX
    On December 3 and 4, the Gulf Cooperation Council - which counts Saudi Arabia, Bahrain, Kuwait, the UAE, Qatar, and Oman as members - will meet for the Doha Summit, and this meeting will be watched very carefully as the council is expected to discuss breaking their respective currencies from the US dollar peg. The synergies between the US and Persian Gulf countries have lessened quite a bit, making US monetary policy and more importantly, the US dollar, an uncomfortable fit for many GCC members. As a result, there is little reason to doubt that moving away from a dollar peg will be discussed at the Doha Summit, but what are their options and how will it affect the US dollar? more ...
  • FX Radio: Dollar Tumbles on Fed Rate Cut Prospects, Volatility to Continue Through Tomorrow
    Nov 28, 2007 10:05 PM - DailyFX
    more ...
  • Dow Rises 300 Points, Triggering a Turn in Carry Trades
    Nov 28, 2007 9:03 PM - DailyFX
    - Dollar: Beige Book Report Validates Need for Further Easing - Euro Sees Strong Intraday Reversal more ...
  • Dow Rises 300 Points, Triggering a Turn in Carry Trades
    Nov 28, 2007 8:58 PM - DailyFX
    The Dow has rallied more than 500 points over the past 2 trading days, triggering a sharp rebound in all of the Japanese Yen crosses. Carry trades are back with a vengeance, but the question at the forefront of everyone?s minds is whether this trend will continue. more ...
  • British Pound Rallies on BoE Comments
    Nov 28, 2007 8:57 PM - DailyFX
    The British pound rallied against both the US dollar and Euro thanks to the strong demand for high yielding currencies and hawkish comments from Bank of England policymaker Sentence. more ...
  • Euro Sees Strong Intraday Reversal
    Nov 28, 2007 8:56 PM - DailyFX
    Having fallen to a low of 1.4712 intraday, the reversal in the EURUSD was nothing short of impressive. US and Eurozone economic data continued to surprise in opposite directions, leading us to believe that the currency pair still has a chance of testing 1.50. more ...
  • Australian, New Zealand and Canadian dollars Unfazed by Weaker Commodity Prices
    Nov 28, 2007 8:54 PM - DailyFX
    The Australian, New Zealand and Canadian dollars are stronger across the board despite a drop in commodity prices. With no economic data released other than mixed Australian reports, the primary driver of commodity price strength is risk appetite. The breakouts in the Australian and New Zealand are impressive and judging from the price action, we could see further gains. more ...
  • Dollar Falters on Dow Jones Rallies, Currency Traders Buy Popular Carry Trade Pairs
    Nov 28, 2007 8:35 PM - DailyFX
    The US dollar moved lower in a highly volatile day of currency trading, as an earlier greenback bounce gave way so a substantial reversal on an impressive Dow Jones Industrial Average rally. An overnight continuation of yesterday?s dollar rebound initially sent the currency substantively higher ahead of the New York open, but sharply disappointing Durable Goods Orders results and dovish US Federal Reserve commentary easily forced a later dollar selloff. more ...
  • AUDJPY Wave 2 To Test 101.00
    Nov 28, 2007 6:12 PM - DailyFX
    more ...
  • Fed Should not Hold Economy Hostage, Says Kohn, Signals Further Rate Cuts
    Nov 28, 2007 5:32 PM - DailyFX
    - The Fed "should not hold the economy hostage to teach a lesson to financial market speculators", Fed's vice Chairman?s Kohn said today to the Council on Foreign Relations in New York. - U.S. stock market rallies on expectations the Federal Reserve will cut the Fed Funds rate in December - Despite the recent optimism in the stock market, credit conditions in the U.S. money market remain very tight more ...
  • British Pound likely to Break Trading Range in Week Ahead
    Nov 28, 2007 5:29 PM - DailyFX
    more ...
  • EURUSD Correction to 1.4700
    Nov 28, 2007 2:33 PM - DailyFX
    - Euro In Larger Correction? - Japanese Yen Towards 111.00 - British Pound Wave 3 Down To Begin? - Swiss Franc Towards 1.1300 - Canadian Dollar Support at Par - Australian Dollar Towards .9100 - New Zealand Larger Correction Underway more ...
  • Hedging Strategy of the Week (Profit Target: 400 pips)
    Nov 28, 2007 2:26 PM - DailyFX
    Currency Pair: EUR/CHF Entry Zone: Go both long and short at the market if the price is at any level within the 1.63-1.67 range Protective Stop: Long stop below 1.60 and short stop above 1.70 Profit Target: Long Target at 1.67 and Short Target at 1.63 Profit Potential: 400 pips (excluding transaction costs and slippage) more ...
  • New Zealand Larger Correction Underway
    Nov 28, 2007 1:37 PM - DailyFX
    Commentary: The large 5 wave advance from .6639-.7891 indicates that the larger trend is up but a larger correction is expected before a resumption of the uptrend. The decline from .7891 has yet to even reach the 38.2% level of the previous rally. As such, the decline from .7891-.7435 is most likely just wave A in a larger A-B-C decline. more ...
  • Japanese Yen Towards 111.00
    Nov 28, 2007 1:36 PM - DailyFX
    Commentary: We wrote yesterday that "this rally could continue to at least the former 4th wave at 111.75." With 5 waves down from 117.93-107.20, there is no change in the outlook for a larger recovery. Initial resistance is not until the 38.2% of the drop at 111.30. more ...
  • British Pound Wave 3 Down To Begin?
    Nov 28, 2007 1:34 PM - DailyFX
    Commentary: We are sticking with the bearish count. Under the bearish count, the decline from 2.1160-2.0522 is wave 1 in a 5 wave bear cycle. The rally from 2.0522-2.0844 is wave 2. The decline from 2.0844-2.0504 is wave 1 of larger 3. The choppy rally from 2.0353 to 2.0762 can be counted as a double zigzag, which fits as wave 2 of larger 3. more ...
  • Euro In Larger Correction?
    Nov 28, 2007 1:33 PM - DailyFX
    Commentary: It seems likely now that a top is in place for the EURUSD at 1.4967 until at least 1.4520. The decline from 1.4967 has either completed the first leg of a flat correction (3 waves down to this point) or a more bearish structure is unfolding now and the decline from 1.4908 is wave 3 within a 5 wave bearish cycle from the top. more ...
  • Swiss Franc Towards 1.1300
    Nov 28, 2007 1:32 PM - DailyFX
    Commentary: We have focused recently on the fact that the USDCHF is in a 5th wave (like the EURUSD) and that a turn was expected. The recent turn is either a correction in larger wave 4 within the 5 wave bear cycle from 1.2467 or is something more bullish. more ...
  • Canadian Dollar Support at Par
    Nov 28, 2007 1:31 PM - DailyFX
    Commentary: The large double zigzag that we proposed may be complete. The USDCAD has run into resistance from former congeston (circled) and the 50% of 1.0866-.9055 at .9961. Still, the rally from .9055 is likely just the first leg in a larger rally. more ...
  • Australian Dollar Towards .9100
    Nov 28, 2007 1:29 PM - DailyFX
    Commentary: See yesterday?s report for the longer term count. Near term, the decline from .9399 could be just an a-b-c decline. This is suggestive of a resumption of the uptrend and eventual rally through .9399. more ...
  • EURUSD Correction To Test 1.4700
    Nov 28, 2007 1:23 PM - DailyFX
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  • Will US GDP Revisions for Q3 Cool December Fed Rate Cut Expectations?
    Nov 28, 2007 12:14 PM - DailyFX
    NOV 29 US GDP Annualized (3Q P) (13:30 GMT; 08:30 EST) New Home Sales (OCT) (15:00 GMT; 10:00 EST) Expected: 4.9% Expected: 750K Previous: 3.9% Previous: 770K more ...
  • Forex News: China Rejects Calls For Faster Yuan Apprecation, US Dollar Rallies
    Nov 28, 2007 10:22 AM - DailyFX
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  • US Dollar Rally Leads Euro, Pound to Plummet - Will We See A Continuation Today?
    Nov 28, 2007 10:00 AM - DailyFX
    Talking Points - Australian Dollar: Home sales slow as property market cools - Japanese Yen: Better than expected retail sales do little for yen - Swiss Franc: KOF leading indicator highlights resilience of Swiss economy - Euro: German consumer confidence dwindles - US Dollar: Heavy event risk including durable goods, Fed?s Beige Book more ...
  • FX Radio: Dollar May Rally on Overnight Financial Times Report, Proves Resilient on Dismal Consumer Confidence Data
    Nov 27, 2007 10:45 PM - DailyFX
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  • USDCAD Hits Parity, Australian and New Zealand Dollars Strengthen
    Nov 27, 2007 9:35 PM - DailyFX
    Even though the Canadian dollar has been range trading over the past week, it has been extremely volatile on an intraday basis. We have seen swings of 50 to 70 pips within minutes at all hours of the day. We finally have seen the breakout that we are waiting for with USDCAD taking a stab at parity. more ...
  • Carry Trades Rebound Thanks to Dow Rally but Losses Are Still Steep
    Nov 27, 2007 9:32 PM - DailyFX
    Even though carry trades have rebounded on the back of the sharp rally in the Dow, the recent wave of risk aversion in the markets makes the latest recovery vulnerable to renewed losses. Japanese retail sales are due for release tonight. Sales are expected to improve but weak wage growth could limit the rise. more ...
  • British Pound: Waiting for More Direction
    Nov 27, 2007 9:30 PM - DailyFX
    There has not been that much action in the British pound over the past 24 hours because of the lack of UK economic data. Therefore the pound is unchanged against the US dollar but has strengthened against the Euro for the third consecutive trading day. For the British pound, traders are simply waiting for more direction on whether the Bank of England will actually be following through with the three interest rate cuts that the market is pricing in. more ...
  • Eurozone Data Supports Higher Interest Rates
    Nov 27, 2007 9:28 PM - DailyFX
    Throughout the past few months the European Central Bank has been staunchly hawkish, refusing to bow to political pressure and market criticism. Today?s economic data gives us clear evidence of why they have chosen to act this way, because inflation pressures are a serious problem. more ...
  • Federal Reserve versus the Market: Who is Right?
    Nov 27, 2007 9:26 PM - DailyFX
    The story of the day is not the US dollar but rather carry trades, which are up sharply on the back of the strength in the stock market. News that Citigroup received a $7.5 billion cash infusion from the Abu Dhabi Investment Authority has sent financial shares skyrocketing on the hope that the cash infusion will stabilize the banking giant that announced another round of job cuts on Monday. more ...
  • Federal Reserve versus the Market: Who is Right, and Why Does it Matter?
    Nov 27, 2007 9:24 PM - DailyFX
    - Federal Reserve versus the Market: Who is Right? - Eurozone Data Supports Higher Interest Rates - British Pound: Waiting for More Direction more ...
  • US Dollar Prospects Improve on Citigroup Investment, Sharp Gain in Treasury Yields
    Nov 27, 2007 7:11 PM - DailyFX
    The US dollar rallied strongly for the first day in five, as news of substantial foreign investment in the downtrodden domestic banking titan Citigroup lifted hopes that international investors would seek to buy recently depreciated American assets. The currency shrugged off a clearly disappointing Conference Board Consumer Confidence report and continued its advance into afternoon trading, with a rally in the downtrodden Dow Jones Industrial Average lifting hopes for the broader economy. The dollar posted an especially pronounced rally against the Japanese Yen, which was the day?s largest decliner on the broad improvement in global risk sentiment. more ...
  • AUDUSD Has Further Room to Run Before a Major Reversal
    Nov 27, 2007 3:45 PM - DailyFX
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  • Net Speculative Positioning in the USDCAD Continues to Recover and Suggests Further USDCAD Correction
    Nov 27, 2007 3:42 PM - DailyFX
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  • 2-Year Lows in the USDJPY Coinciding with Relative Extremes in Speculative Positioning
    Nov 27, 2007 3:36 PM - DailyFX
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  • Speculative Interest at Its Most Bearish and Suggests Major Reversal
    Nov 27, 2007 3:33 PM - DailyFX
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  • GBP Continues to Set New Peaks Despite Speculative Interest
    Nov 27, 2007 3:30 PM - DailyFX
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  • Speculative Interest Leaves Scope for Further Euro Rallies
    Nov 27, 2007 3:28 PM - DailyFX
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  • Speculative Futures Positioning Suggests that USDJPY May Bottom Through Near Term
    Nov 27, 2007 2:57 PM - DailyFX
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  • Carry Trade Basket Performance Update: 152 pips gain
    Nov 27, 2007 12:58 PM - DailyFX
    Last week the DailyFX Dynamic Carry Trade Portfolio was up by 152 pips and accumulated an additional $87 per basket on interest payments. The most lucrative trade was the position we held in the Sterling with 217 pips gain in capital appreciation plus $28 on interest payments accumulated along the last 5 days. Like we said in our Watch What the Fed Watches weekly report, despite the 75 basis points cut in the overnight Fed Funds rate, credit conditions remain very tight and now have the potential to restrain economic growth more generally. A situation that could favor a further unwind of carry trades and benefit lower yielding currencies like the Japanese yen. more ...
  • EUR/USD May Be Targeting 1.50 As US Data Is Likely To Disappoint
    Nov 27, 2007 12:11 PM - DailyFX
    NOV 28 US Durable Goods Orders (OCT) (13:30 GMT; 08:30 EST) Existing Home Sales (OCT) (15:00 GMT; 10:00 EST) Expected: -0.2% Expected: 5.00M Previous: -1.7% Previous: 5.04M more ...
  • Japanese Yen Large Correction Underway
    Nov 27, 2007 11:32 AM - DailyFX
    Commentary: We wrote yesterday that "wave 5 would equal wave 1 at 107.07. One more low is expected before a larger recovery. A drop below 107.54 may also complete a 5 wave decline from 124.13." A more ...
  • Euro Could Still See 1.5000
    Nov 27, 2007 11:30 AM - DailyFX
    Commentary: We wrote yesterday that "it is possible that the drop completed wave iv of 5 and that one more high (and maybe a test of 1.500) will be registered before a more meaningful top is in place. more ...
  • Swiss Franc Same as Euro
    Nov 27, 2007 11:27 AM - DailyFX
    Commentary: The USDCHF is in a 5th wave (like the EURUSD) and the recent rally may have been wave iv of 5. As such, one more low is expected before a more meaningful turn. more ...
  • USDJPY May Have Put In a Significant Low
    Nov 27, 2007 11:18 AM - DailyFX
    - Euro Could Still See 1.5000 - Japanese Yen Large Correction Underway - British Pound Choppy Action Unclear - Swiss Franc Same as Euro - Canadian Dollar Double Zigzag - Australian Dollar Big Top? - New Zealand Triangle as Wave B more ...
  • Forex News: US Dollar Edges Higher, Citibank Gets Some Help From Abu Dhabi
    Nov 27, 2007 10:58 AM - DailyFX
    more ...
  • US Dollar Tries to Recover, But Upcoming Housing and Sentiment Data Could Reverse the Gains
    Nov 27, 2007 10:17 AM - DailyFX
    Talking Points - Japanese Yen: Rebound in the Nikkei bumps up carry trades - Swiss Franc: USDCHF climbs despite hot Swiss inflation, consumption data - Euro: London traders stage rally on resilient German IFO figures - British Pound: Choppy range on hawkish comments from BOE?s Bean - US Dollar: Full calendar on deck including housing and sentiment reports more ...
  • Is The ECB Waiting For the US Fed to Make a Move?
    Nov 27, 2007 8:22 AM - DailyFX
    Strong inflation pressures have thus far left the European Central Bank maintaining a hawkish bias. However, downside risks to growth, instability in the financial markets, and the rapid appreciation of the Euro has also left the bank quite unsure of what to do next. As the ECB ponders whether more accommodative policy is necessary, Trichet will likely be awaiting the US Fed?s next move, as a rate cut by Bernanke in the face of percolating inflation will give the ECB the green light to consider cutting as well. Fed Fund Futures are fully pricing in a 25bp cut in December - will Bernanke follow the market's lead? Discuss the topic in the DailyFX Fed Watch Forum. more ...
  • EUR/GBP Advance Is Not Complete
    Nov 26, 2007 10:28 PM - DailyFX
    EURJPY EURCHF EURGBP more ...
  • FX Radio: Currency Market Volatility Likely to Pick up in Week Ahead
    Nov 26, 2007 10:17 PM - DailyFX
    more ...
  • Japanese Yen Crosses Tumble on Equity Market Weakness
    Nov 26, 2007 9:53 PM - DailyFX
    With the Dow tumbling over 200 points, it would be surprising if carry trades actually managed to stay in positive territory. more ...
  • Risk Aversion Sends Australian, New Zealand and Canadian Dollars Lower
    Nov 26, 2007 9:47 PM - DailyFX
    The Australian, New Zealand and Canadian dollars continue to fluctuate within wide trading ranges with one day of gains being followed by another day of losses. more ...
  • British Pound: Licking Its Wounds
    Nov 26, 2007 9:44 PM - DailyFX
    The British pound licked its wounds today after difficult trading over the past few weeks. more ...
  • Euro: Ready for a Breakout
    Nov 26, 2007 9:39 PM - DailyFX
    The Euro is trading not far from its record highs and this consolidative price action tells us one thing, which is that the currency is ready for a breakout. more ...
  • Stocks Drop 237 Points, Treasuries Fall to 3 Year Low, What Does it Mean for the Dollar?
    Nov 26, 2007 9:32 PM - DailyFX
    - Euro: Ready for a Breakout - British Pound: Licking Its Wounds more ...
  • Weekly Trading Lesson: Market Orders, Stop Orders and Limit Orders.
    Nov 26, 2007 8:39 PM - DailyFX
    more ...
  • US Consumer Confidence Numbers May Determine Short-Term Direction in the Dollar
    Nov 26, 2007 6:46 PM - DailyFX
    The US dollar remained relatively unchanged following an uneventful return from the US Thanksgiving holiday weekend, with traders reporting light volume on limited interest from major trading desks. The lack of economic data gave little directional bias to start the week?s currency trading, but a busy US calendar certainly promises a pickup in volatility in the week ahead. US stocks began the trading week in a similarly uneventful fashion, and an unchanged Dow Jones Industrial Average left the global carry trade similarly unmoved through time of writing. more ...
  • Japanese Yen Correction
    Nov 26, 2007 1:28 PM - DailyFX
    Commentary: Last week, we wrote that "As long as price is below 110.58, the favored count places the pair in wave iii of 5. There are objectives concentrated in the 108.00-108.50 range, which is fairly close. JPY pairs though have a tendency to extend in 5th waves so lower levels (and quickly) are a very real possibility. more ...
  • British Pound Choppy Action Unclear
    Nov 26, 2007 1:27 PM - DailyFX
    Commentary: As has been the case for some time, the short term pattern in Cable is not too clear. Under the bearish count, the decline from 2.1160-2.0522 is wave 1 in a 5 wave bear cycle. The rally from 2.0522-2.0844 is wave 2. The decline from 2.0844-2.0504 is wave i of 3 and the up (to 2.0617) down (to 2.0353), up sequence is an expanded flat in wave ii of 3. more ...
  • Euro Could Still See 1.5000
    Nov 26, 2007 1:26 PM - DailyFX
    Commentary: We wrote last week that "bullish objectives are at 1.4912 and 1.4955. In summary, the EURUSD is likely to drop below 1.4800 before wave v challenges the mentioned objectives (1.4912/55). " After rallying to 1.4966 on Friday, the EURUSD fell nearly 200 points. more ...
  • Australian Dollar Big Top?
    Nov 26, 2007 1:22 PM - DailyFX
    Commentary: We are presenting the longer term count since it is possible that the AUDUSD is at a major turning point. From the June 2004 low at .6772, the pair may have completed an ending diagonal as wave 5 of the larger wave 5 bull cycle that began in March 2001. more ...
  • Global Central Banks Likely Cut Rates in tandem with US Fed, Will Dollar Weakness Persist?
    Nov 26, 2007 1:16 PM - DailyFX
    Turmoil on the financial markets has flared up once again. While the crisis is still primarily a credit crisis, the financial markets have growing fears that it can have serious consequences for growth in the US and perhaps even globally. The recent tumble on equity markets has not only hit financials - cyclical equities in general are being increasingly hurt. Generally speaking, the market overall continues to believe that the global economy will pull through the crisis more or less unscathed, although growth in the US may be hit hard. Faith in this decoupling of the US from the rest of the world is an important reason why the dollar is under pressure and why many commodities are continuing to soar. Faith in the decoupling has, however, become more fragile. The Bank of England will probably feel forced to cut interest rates as early as December, and the market now is also of the opinion that the ECB will cut in 2008. more ...
  • EURUSD Could Still See 1.5000 Soon
    Nov 26, 2007 1:08 PM - DailyFX
    - Euro Could Still See 1.5000 - Japanese Yen Correction - British Pound Choppy Action Unclear - Swiss Franc Same as Euro - Canadian Dollar Double Zigzag - Australian Dollar Big Top? - New Zealand Triangle as Wave B more ...
  • US Dollar May Fall Further As Housing, Sentiment Data Raise Recession Fears
    Nov 26, 2007 12:43 PM - DailyFX
    NOV 27 US S&P/CS House Prices (Q3) (YoY) (14:00 GMT; 09:00 EST) Consumer Confidence (NOV) (15:00 GMT; 10:00 EST) Expected: -4.1% Expected: 91.0 Previous: -3.2% Previous: 95.6 more ...
  • Forex News: Carry Trades Rally Overnight, Australian PM Howard Loses Election To Rudd
    Nov 26, 2007 11:25 AM - DailyFX
    more ...
  • US Dollar Softens Overnight Despite Stronger Black Friday Sales - What Happened?
    Nov 26, 2007 10:03 AM - DailyFX
    Talking Points - Australian Dollar: Punches through 0.8800 on election news - New Zealand Dollar: Gains subdued as trade deficit widens - Japanese Yen: USDJPY sticks to range while crosses follow equities higher - Euro: Break of 1.4850 on clear economic calendar - US Dollar: No data on hand, traders await US stock market open more ...
  • Dollar: 1.50 in the Crosshairs?
    Nov 26, 2007 5:10 AM - DailyFX
    Talking Points: $ Dollar - 1.50 in the Crosshairs? € Euro - Will Fundamentals Hold? ¥ Yen At 2 Year Highs ? Cable Weakness Persists - Headed to 2.00? ? Swissie Hits Record Highs C$ Canadian Dollar Continues Lower on Economic Disappointments AU$ Aussie Falters on Tumbles in Gold, Stock Markets NZ$ New Zealand Dollar on Shaky Ground Following Dow Performance more ...
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