The Forex Pro

Divergence
Divergence - Definition of Divergence on Investopedia - A situation in which Moving Average Convergence Divergence - MACD Price Rate Of Change - ROC Reversal

What does MACD stand for? - Abbreviations and acronyms from
Moving Average Convergence/Divergence **** MACD: Michigan Association of Conservation Note: We have 28 other definitions for MACD in our Acronym Attic

Things to watch for MACD | GFT Forex
Avoiding the pitfalls of using MACD in your trading One of the best tips I can offer is to remember the definition of a trend.

MACD-H - Moving Average Convergence/Divergence Histogram - Technical
moving average convergence divergence MACD histogram and oscillator - reports, definition, examples Copyright 2008 MHP Systems Inc. | Privacy | Terms of Use. Historical and

FOMC Outcome Might Determine Dollars Future!
The big day has finally arrived with FOMC meeting being the main hot event for all global markets. Yesterday, we had durable goods orders out of US, printing a better number and therefore giving greenback a bid, taking EUR/USD down towards 1.47. The pair struggles to move either way, moving within tight range of 1.4735-1.4790. Today we have ADP report coming out, which will eventually give us an idea of how the non farm payrolls will be this Friday, with current analysts estimations giving it a

What Will the Czech Central Bank Do About 7% Inflation?
? Czech January inflation will approach 7%, hitting a 9-year high. ? The National Bank?s new inflation forecast is likely to be more pessimistic in the short term, while more positive for the next 12-18 months. ? The inflation shock should temporarily increase expectations for more aggressive hikes in rates, pushing the koruna to new all-time highs. In the last quarter of 2007, we were confronted with numerous unpleasant inflation surprises, but this is not the end of the influx of

New worries in the market
Investors sold financial stocks and the dollar on Thursday as concerns about two top U.S. bond insurers’ credit ratings reinforced fears about the health of the U.S. economy. Speculation on financial television network CNBC that credit rating firms would downgrade Ambac Financial Group Inc and MBIA Inc pushed both down more than 10 %, drowning out the cheers for Wednesday’s 50 basis point interest rate cut by the U.S. Federal Reserve. The Dow Jones industrial average closed down 0.3 %,

Currency Currents
Just in case you may reside on another planet and hadn?t noticed, the US Federal Reserve Open Market Committee, the jolly bunch assembled together representing the de facto global central bank, will deliver its interest rate decision today.  If you do reside on another planet, and are looking down at the rather interesting one where the Fed resides, you may have noticed just how many trees have been killed in order to pontificate about what the Fed should do, will do, and how it will

Lithuania: Loose fiscal policy triggers downgrade
The rating agency Standard & Poor s has downgraded Lithuania s long-term foreign currency rating by one notch to A- from A. S&P maintains its negative outlook so additional rating action cannot be ruled out. The downgrade comes after S&P last year changed its outlook on Lithuania to negative.

The euro is trading steady ahead of the Fed meeting
Attention is fixed on the U.S. Federal Open Market Committee (FOMC) meeting today. The Federal Reserve is expected to announce a rate cut to help the U.S. economy avoid a recession. Meanwhile, gross domestic product data revealed that the U.S. economy grew at a much slower pace, up only 0.6% in the fourth quarter, down from 4.9 percent in the third quarter. The report suggests that the Fed may move aggressively to cut rates to boost the U.S. economy. The U.S. dollar was little changed ahead of

1.50 EUR/USD mark again within striking distance
On Wednesday, EUR/USD basically traded in a wait-and-see mode going into the Fed meeting. The pair traded above the 1.48 at noon, but gave back the earlier gains after a stronger than expected ADP labour market report. However, the downside was still well protected, reinforced by a weak Q4 US GDP figure. The reaction on the Fed interest rate decision was straightforward. As the market hadn?t fully priced in a 50 basis point rate cut, EUR/USD jumped to the 1.49 area immediately after the?

US: Strong Durable Orders don’t fit in consensus thinking
The durable orders report was a shocker as it came in very strong, questioning whether the economy was as weak as consensus had become to belief. Of course, the durable orders are notoriously volatile, but its strength is a wake up call that one should never stop questioning the outlook for the economy. The headline orders rose by 5.2% M/M following an upwardly revised 0.5% M/M in November. Excluding transportation, orders were up an equally strong 2.6% M/M, following an upwardly revised 0.4%

Oil: Bullish trend and target at USD 94.00.AREA
Buy(CLH8) @91.70/92.00 with a stop below 91.50 Target 93.00 area.

Equities are lifting commodity prices
Market expectations of a new US interest-rate cut this week have been supportive of the troubled equity market and have helped pull the oil price back above USD 90. However, we expect the Federal Reserve to give the market less of a helping hand than has been discounted. We expect an interest-rate cut of 0.25 percentage point tomorrow. But 0.50 percentage point is not out of the question. In all likelihood the week will not see any OPECinspired correction. It is on the cards that the

Option Trade of the Day

Big MacDaddy
*There is a substantial risk of loss in trading futures and options. Placing contingent orders such as “stop loss” or “stop limit” orders will not necessarily limit your losses to the intended amounts. since market conditions may make it impossible to execute such orders. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In

U.S. stocks dropped
Oil higher BOE maybe to cute rates Stocks again in negative area Today?s main events: USD: New home sales EUR: Money-M3 annual growth ECB: Tumpel-Gugerell speaks American Time Zone: U.S. stocks dropped U.S. stocks dropped for the first time in three days, led by financial companies, on concern banks will be saddled with more credit-market losses and the Federal Reserve won’t cut interest rates enough to stimulate growth. JPMorgan Chase & Co. and Citigroup Inc. led banks lower after an

Action Bias Summary Table

Asia Session Performance

USD/JPY Daily Outlook
———————————————————— INTRA-DAY USD/JPY OUTLOOK :              106.49 Updating time :29 Jan 2008 02:33 GMT As dlr has retreated fm 107.14 (Aust.) on active cross buying in yen, suggesting recovery fm y’day’s low at 106.00 has ended n consolidation with down- side bias remains for weakness to 106.30/35 but below is needed for re-test of said sup. Sell on recovery with stop as indicated n only abv

Currency Majors Technical Analysis
European Session EUR/USD - Euro Dollar 1,4774. EUR USD is in a consolidation after the last bullish movement. The volatility decreases. Bollinger bands are tightened. ForexTrend 1H (Mataf Trend Indicator) is in a bullish configuration. The consolidation should continue. The price should find a resistance below 1,4800. If the resistance is broken then the target will be 1,4900 (125 pips). Resistances 1,4800 - 1,4900 Supports 1,4750 - 1,4670 more information on EUR/USD - Euro Dollar Click Here

Forex Market Outlook on Majors
——————————————————— INTRA-DAY GBP/USD OUTLOOK :              1.9868 Updating time : 29 Jan 2008 07:37 GMT Current rebound suggests pullback fm 1.9893 has possibly ended at 1.9811 n consolidation is seen with upside bias for re-test of said res but abv is needed to confirm upmove has resumed to 1.9920 but reckon 1.9950/60 wud hold fm here. Buy again on dips with stop as indicated, break wud risk

Consumer Prices from Iceland
Today s comment Majors, Scandis & Funding Consumer confidence from Conference Board has fallen around 20 points since summer. Even though consumer confidence stabilized in December, it is still below long term average. Consumer confidence has probably been affected by the turmoil in the financial markets, the situation in the housing market, gas prices, and outlook to rate cuts from the Fed. We expect a moderate fall in consumer confidence. The movements in EURNOK have been rather

Rumor Mill Works Overtime in Asia
- The rumor mill worked overtime in Asia, as vague chatter of a large European bank delaying its profit results by one week weighed on the carry trades. Asian stocks markets gave back early gains and S&P futures moved into the red on rumors that Congress does not approve of President Bush’s new stimulus package proposal. There were some other notable rumors doing the rounds: The JPY swap curve steepened after press reports that a group of lawmakers within Japan’s ruling LDP party is

AUD overlay
AUD Daily Average 2008: .8820 Australian Exporter Most Recent Action Unhedged/Short at .8701 Reversal Point .8699 Rate Achieved 2007: .7823 Rate Achieved 2008: .8685 Australian Importer Most Recent Action Hedged/Short at .8911 Reversal Point .8759 Rate Achieved 2007: .8487 Rate Achieved 2008: .8852

JPY rose on worries
The yen rose broadly and hit a 2-1/2-year high against the dollar on Tuesday as a slide in global equities prompted investors to reduce their exposure to risky, higher-yielding assets. The yen extended its gains against major currencies as regional shares fell sharply, and jumped to a five-month high against the euro and a 21-month peak versus sterling early on Tuesday. Stocks hit by U.S. worries Stocks tumbled across Asia on Tuesday, and U.S. stock index futures sank, as panic gripped markets

Currency markets show fatigue towards the end of the week
- Forex: Currency markets stayed in relatively tight, familiar ranges in Asia, with the market showing signs of extreme fatigue after the volatility of the last week. EUR/USD failed to move above resistance at 1.4770, a bottom on the short-term charts from last week. The market had been pricing in a rate cut by the ECB, but hawkish comments by ECB officials has now made it clear that they remain worried about inflation, providing some support to the EUR. The invigorated appetite for risk and

Worries continue to affect the markets
The yen regained ground against the dollar on Thursday after slipping off the previous day’s 2-1/2-year peak, as uncertainty about the outlook for equities and credit markets kept investors on edge. The yen initially slipped to around 107 yen to the dollar as an overnight rise in U.S. shares pointed to a recovery in risk appetite, which tends to boost demand for higher-yielding currencies and assets. Moves in stock markets are regarded as a barometer of investor appetite for carry trades,

Emergency 75bp rate cut
Only seen before after 9/11, the Fed takes a huge step in lowering interest rates and cuts 75bp in an emergency move, lowering its interest rate to 3.5% . GBP, EUR, CHF soar on the news, but again, all pairs, after reaching extreme levels, have retraced big time in a very good technical move. More information at the Advisor Blog . Check the effect that this sudden cut has over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates

AUD overlay
AUD Daily Average 2008: .8785 Australian Exporter Most Recent Action Hedged/Long at .8699 Reversal Point .8561 Rate Achieved 2007: .7823 Rate Achieved 2008: .8804 Australian Importer Most Recent Action Hedged/Short at .8911 Reversal Point .8759 Rate Achieved 2007: .8487 Rate Achieved 2008: .8852

European Market Update
ECONOMIC DATA SW Household Lending: 10.8% v 11.9% y/y EU Dec M3 Y/Y: 11.5% v 12.2%e EU Dec M3 3-Month Avg.: 12.1% v 12.2%e UK Jan Hometrack House Prices: M/M ?0.3% v ?0.3% prior || Y/Y 2.3% v 3.0% prior SPEAKERS/COMMENTS SW Central Banker: Financial market crisis may be more profind than first seen BOE Blanchflower: Downside risks to growth outweigh upside risks to inflation || Evidence from housing and commercial property markets is “worrying” || Current UK rates are restrictive and MPC

USD, recessions, and Fed easing cycles
Summary and conclusions ? The past few days have seen much action on the financial markets. First, we had a significant sell-off in the equity markets, which sent JPY and CHF higher, and EUR/USD lower. Then, there was an inter-meeting response from the Fed cutting rates by 75bp. This brought some relief to the market and Monday s movements in the FX market were reversed. ? In this edition of FX Crossroads we take a look at how USD has performed in periods following the initiation of an

Roller Coaster Slows but Don’t Board Yet
Barron’s Online - Bollinger Bands. Investors can find them on most free charting Websites as they are very popular with traders. Typically, traders is the time to be thinking more about preserving what you’ve got rather than taking big risks to get more. Also read

Forex Market Outlook on Majors
——————————————————— INTRA-DAY GBP/USD OUTLOOK :              1.9483 Updating time : 21 Jan 2008 08:29 GMT Although cable’s intra-day breach of 1.9483 signals downtrend has resumed n further weakness to 1.9450/60 cannot be ruled out, ‘loss of momentum’ shud prevent steep fall below there n reckon 1.9400 /10 wud hold, yield rebound later today. Wud not chase this move n stand aside. Abv 1.95 30/35

EUR/USD daily outlook
The Euro continued to drop versus the US dollar and has reached lows at 1.4390 during today’s Asian session. Support starts at 1.4385 backed by 1.4355, 1.4310 and 1.4260. Resistance emerges at 1.4460 followed by 1.4505 and 1.4545. Sentiment is bearish on both hourly and daily studies so the downside looks favored as the Euro lacks the strength to recover or at least retrace on a trend correction process which may bring the 1.45 zone back in our attention. While the momentum remains negative on

EUR/USD daily outlook
The Euro rallied on yesterday versus the US dollar due to the FOMC surprising intermeeting rate cut, slashing the federal funds target rate by 75bps to 3.50% and lowering the discount rate 75bps to 4.00%. The event has helped the Euro to cut its recent losses by climbing for more than 300 points. Intra-day support is now seen at 1.4600 backed by 1.4560 and 1.4525. Resistance starts at 1.4645 followed by 1.4685 and 1.4720. Daily sentiment is slightly bullish while the hourly studies are neutral

Forecast on Forex Majors
USDJPY Price:              106.45 Resistance:   106.80 … 107.08 … 107.40 … 107.79 Support:        106.20 … 106.07 … 105.65 … 105.42 Bias:                     While 106.20-30 supports we should move to test the 107.40-79 area before pulling back Daily

EUR/USD daily outlook
Recommended trades: Long in the 1.4720 area, stop at 1.4680, objectives at and above 1.4795. The Euro has rallied on yesterday and passed through the entire 1.46-1.47 zone finding support in the 1.47 area. Intra-day support is seen at 1.4730 backed by 1.4685, 1.4635 and 1.4590. Resistance emerges at 1.4780 followed by 1.4825, 1.4865 and 1.4910. Upside bias is favored by the indicators on the daily studies while the hourlies are slightly bearish at the time of this report. The Euro has retraced

U.S. Dollar Outlook
thursday Jan 24, 2008 usd weakening  more in eurusd, nzdusd, audusd ************* eurusd buy agressively entry  1.4622 stop   1.4480 target 1.4750 ******** nzdusd buy agressively entry 0.7660 stop  0.7530 target 0.7750 ********** contact for member 3 months, 6 months at tanuncj@yahoo.com or tel +66-81-8233479 **********

The Japanese yen softened following a rally in global stocks
The U.S. dollar continues to trade in a volatile range ahead of next week?s Fed policy-setting meeting. Market players are expecting another aggressive rate cut by the Fed, despite Tuesday?s emergency 0.75% Fed cut to prevent the U.S. economy from falling into a recession. Concerns about a possible recession in the U.S. will keep the dollar under pressure. Next week, the market will eye the important U.S. non-farm payrolls report for further direction. The Japanese yen softened following a

Argentina’s industrial output rose 9.9 percent in December from a year earlier
LATIN AMERICA Argentina Argentina’s industrial output rose 9.9 percent in December from a year earlier, the National Statistics Institute reported. Industrial production last month rose a seasonally adjusted 0.5 percent from November, the institute reported in Buenos Aires. Brazil Brazil’s ethanol industry has grown as the government champions the fuel as a means to create jobs, curb pollution and lessen dependence on fossil fuels. Behind the boom lies a harsher reality for the 500,000 workers

Bollard calm amidst the chaos
What a week. World sharemarkets have been yo-yoing crazily as global sentiment has swung between despair and relief. The US Federal Reserve cut interest rates by 75 basis points at an unscheduled meeting, the largest cut in 25 years. The Reserve Bank of New Zealand was considerably more restrained at its review last week, leaving the Official Cash Rate on hold and issuing a balanced statement that acknowledged a serious inflation problem but also risks from the global situation. International

U.S. Business Cycles: A Historical Snapshot - I
U.S. Business Cycles: A Historical Snapshot - I In light of recent developments in the U.S. economy and the recession buzz in the air, we have taken a step back in time to provide a historical perspective of business cycles since the 1950s. The brief business cycle history will be published in two installments. The first installment will look at GDP and employment. Real GDP, on average, fell 1.95% from its peak before the economy turned around in the past eight recessions. The median decline

Euro rise as shadow of an ECB interest rate cut fade with stock support
Resistance and Support: The Dollar slid against the Euro on Thursday as tough inflation comments by a European Central Bank official and strong German business confidence data dashed hopes for a near-term interest rate cut in the euro zone. An improvement in investors’ appetite for risk, following a sharp rebound in European stocks and gains in US equities, pushed down the Dollar versus high-yielding currencies such as the British pound and the Australian and Canadian dollars. ECB governing

Daily Forex Technical Report - Yen Dives Further Despite Stronger CPI
Action Insight Daily Report Yen Dives Further Despite Stronger CPI The Japanese yen dives further on Friday despite stronger than expected CPI report which showed inflation climbed from 0.6% to 0.7% yoy in Dec versus consensus of being unchanged at 0.6%. Another surprise is that core CPI, ex-food, jumped sharply by 0.8% yoy, twice as fast as in Nov and exceeded even the headline CPI. Nevertheless, the core-core CPI, ex-food and energy, remained negative at -0.1% yoy. BoJ meeting of Dec 19-20

Forex Market Outlook on Minors/Crosses
INTRA-DAY AUD/USD OUTLOOK +0.8850+    Aussie’s intra-day firmness suggests the rise fm this week’s low at 0.8513 to retrace recent decline wud extend twds 0.8881, however, nr term loss of up ward momentum shud prevent sharp move beyond there n reckon 0.8900/05 wud hold fm here.    Buy on dips with stop below 0.8808 (aust.) as break wud signal intra-day top made, 0.8760/70… Range Forecast +0.8840 / 0.8865+ Resistance/Support R: 0.8854/0.8881/0.8954 S: 0.8808/0.8744/0.8704

Trading The GBP/JPY
Hello everyone, Stops moved to break-even on the Conquer trades now. Conquer: We had the Drop In Entry at 16:00 GMT (I am about an hour late and 50 pips on my entry). Conquer - GBP/JPY (entries occur on four hour intervals) Zero Line Cross: - No open trades currently Drop In: - entry date: 1/25/2007 at 16:00 GMT entry price (short): 212.38 stop: 212.38 (214.00 original) exits: 1st, 2nd, 3rd currently: +97 pips

Stocks rebound on good earnings
Stocks went higher in yesterday’s US session on better than expected earnings from Microsoft, Xerox, Nokia and Lockheed Martin. Overnight News Bullets SW PPI MoM/YoY (Dec) out at 0.0%/3.9% vs. 0.2%/4.1% expected. Prior at -0.1%/3.7%. GE IFO (Jan): Business Climate at 103.4 vs. 102.3 exp., Current Assessment at 107.9 vs. 107.4 exp., Expectations at 107.9 vs. 107.4 exp. UK BBA Loans for House Purchase (Dec) at 42088 vs. 43944 prior. US Initial/Cont. Claims (Weekly) out at 301K/2672K vs.

Technical Summary for Majors
EURUSD   Bounce from 1.4366, 22 Jan low, reached 1.4683 on 23 Jan, ahead of pullback that left a higher low at 1.4511. Fresh strength emerged from there cleared 1.4683 resistance, to reach a fresh high of 1.4779. Correction lower is underway, with positive near-term outlook, expected to leave a higher low at 1.4640 area, before fresh push higher. Lift above 1.4779 will expose 1.4820/35, possibly 1.4860.    Res: 1.4779, 1.4795, 1.4820, 1.4835  Sup: 1.4683, 1.4640, 1.4620,

Yen Crosses Very Overbought
    1 minute with ForexSurvivor   (25 Jan US) The movement of the forex and the equity this week indicates that further sign of deterioration will take place and be it consider as ? I am warning you.? Euro will deteriorate and I don?t rule out the 120 this year even if 160 is seen. The deterioration sees a decline fast enough that a sign of breathe won?t be inhaled. Keep your trade near MA 50 on the daily, as when it goes apart from below, then we say goodbye to ?euro strength

Risk appetite spelling trouble for USD and JPY again - how long will this last?
High yielders make strong comeback on equity and commodity rallies. MAJOR HEADLINES ? PREVIOUS SESSION Overnight developments: Australia’s Nov. Leading Index out at 0.8% vs. 0.9% expected. Japan Tokyo Jan. CPI out at 0.2% vs. 0.3% expected. Japan Dec. National CPI out at 0.7% YoY as expected, and core CPI out at -0.1% as expected. THEMES TO WATCH ? UPCOMING SESSION Key event risks today (all times GMT): France Jan. Business Confidence Indicator (0745) Sweden Dec. Trade Balance (0830)

EURUSD 1.4589 is Key For Bulls
DailyFx - DAILY STOCHS uses 13 day SLOW STOCHASTICS in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 70. The trend is considered Bearish if the indicator registers a reading below 30. If the

Weekly Wizards: Boxer shorts
Stockhouse Canada - The stochastics indicate the same, and we’re going to be looking for a market decline, starting early this week. [Editor’s Note: This article prepared from analysis on Sunday evening.] We could be a little early as I indicated and could see a bit

GBPUSD Dollar Rally Accelerating: Target Above 2.00
DailyFx - DAILY STOCHS uses 13 day SLOW STOCHASTICS in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 70. The trend is considered Bearish if the indicator registers a reading below 30. If the

USDJPY Tests 105 — More Downside Left?
DailyFx - DAILY STOCHS uses 13 day SLOW STOCHASTICS in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 70. The trend is considered Bearish if the indicator registers a reading below 30. If the

GBPUSD Headed For A Test of 2.00
DailyFx - DAILY STOCHS uses 13 day SLOW STOCHASTICS in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 70. The trend is considered Bearish if the indicator registers a reading below 30. If the

Weekly Trading Lesson: More Indicators Do Not Always Lead to Better
DailyFx - The first indicator on the chart is the MACD (Moving Average Convergence/Divergence), followed by the RSI (Relative Strength Index) and finally the Slow Stochastics. We can see that the RSI signaled to enter after having moved to above from below

How to Handle Midday Swings
Street.Com - Note the lines I’ve marked out, as well as the 20-bar Bollinger Bands and 5-3-3 stochastics. These three elements provide a road map for the entire session. The vast majority of equities will follow oscillations in the futures markets, so you now