The Advisor Weblog

The Beginners Corner tricks and tips
Majors outlook for the US session
Risk aversion easing in the European morning

Posted: 25 May 2011 08:31 AM PDT

Hi all my friends! I would love to share with you all some of the things we discuss in the Beginners Corner every Friday, tips for market, interesting questions, ect that are always good to remember. So here comes the first:

While Canada is among the 10 biggest producers of oil in the world, Japan is a net oil importer. So when we see strong movements in oil like early this month, the best pair to trade is CADJPY: the cross rose over 1300 pips in less than a month, from the all time low set at 76.80 area following Japan earthquake. Oil rising near $ 115 a barrel was the trigger and the lead. In the same time frame USD/CAD lost near 550 pips, while USD/JPY added @ 900 pips.

If you have any question regarding forex trading, feel free to email me to valeria@fxstreet.com. Will be posting answers here daily basis.

This posting includes an audio/video/photo media file: Download Now

Majors outlook for the US session

Posted: 25 May 2011 07:31 AM PDT

Euro lost its charm on more and more Greece jitters, while AUD/USD below 1.0500 (38.2% retracement of this year bullish run) is neither an interesting buy, so Pound seems to be getting all the attention and heading towards strong 1.6300 area, as long as above 1.6220 immediate support. Swiss Franc is also strong yet now, only below 0.8730 we could see strong bearish movements now.

USD/JPY, is capped below 100 DMA, while poor Euro seems heading to 1.3860 expected area.

Here is the full report with all the technical points:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/05/25/03/

Risk aversion easing in the European morning

Posted: 25 May 2011 05:07 AM PDT

Hi everyone and welcome back! Dollar is losing early Asian momentum, as European markets are off yeterday's lows. GBP/USD managed to break above 1.6220 and continues tending higher, while EUR/USD remains mostly weak, limited to the upside by the 20 SMA in the 4 hours chart with a strong bearish tone. ( You can see the technical perspective for today here: http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/05/25/ )

Commodities are also positive, favoring dollar losses, yet market is waiting for the US Durable Orders report, in less than 30 minutes: a negative reading could send stocks back down, and favor a dollar recovery, but rather wait and see. If you want to go for the greenback, maybe Euro, Aud or Cad are the best choices, while if you preffer to sell poor dollar, Pound and Swissy seem to be the preferred ones.

Here is the link for today's calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great trading day!