| Floor Pivot Points | |||||||
|---|---|---|---|---|---|---|---|
| Pair | 3rd Sup | 2nd Sup | 1st Sup | Pivot | 1st Res | 2nd Res | 3rd Res |
| EUR/USD | 1.3107 | 1.3185 | 1.3322 | 1.3400 | 1.3537 | 1.3615 | 1.3752 |
| GBP/USD | 1.5590 | 1.5667 | 1.5738 | 1.5815 | 1.5886 | 1.5963 | 1.6033 |
| USD/JPY | 85.78 | 86.92 | 88.92 | 90.05 | 92.05 | 93.18 | 95.18 |
| EUR/JPY | 112.94 | 114.98 | 118.67 | 120.71 | 124.40 | 126.44 | 130.13 |
| GBP/JPY | 135.58 | 137.41 | 140.57 | 142.40 | 145.56 | 147.39 | 150.55 |
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EUR/USD retreated today after the two-day rally. The faster-than-expected growth of US durable goods orders increased traders’ confidence in the economy and the currency of the United States. At the same time, economists are worried that the report later this week may show an increase of the eurozone unemployment rate to the record 11.9%. Such worries weakened the euro.
Durable goods orders grew as much as 4.6% in December, beating the analysts’ forecast of 1.8%. The November growth was 0.8%. (Event A on the chart.)
Pending home sales dropped 4.3% in December from November, when they went up 1.6%. Experts have promised an increase by 0.5%. Still, the sales remained in an uptrend on an annual basis. (Event B on the chart.)
On Friday, a report on new home sales was released, showing that the sales were at the seasonally adjusted annual rate of 369k, below the forecast value of 387k and the November rate of 398k (revised from 377k). (Not show on the chart.)
EUR/USD was falling today, but later rebounded and touched the highest rate since December 2011. The Forex market is in the risk-on mode and that drives the currency pair higher. The US data was mixed today as the housing market continued to show signs of strength, but consumer sentiment dropped more than was expected. As for news from Europe, the German consumer climate was stable, indicating that the economic environment in Europe is improving. (Event A on the chart.)
S&P/Case-Shiller home price index rose from 144.08 in October to 144.99 in November. The annual growth was 5.5%, matching forecasts exactly. The year-on-year increase in October was 4.2%. (Event B on the chart.)
Consumer confidence fell from 66.7 in December (revised up from 65.1) to 58.6 in January. Analysts have hoped for higher reading of 64.8. (Event C on the chart.)
The simple sense of Forex (Forex currency exchange, Foreign Exchange) is simultaneous purchase and sale of the currency or the exchange of one country’s currency for the one of another country. The world currencies do not have a fixed exchange rate and are always fluctuating, since each are traded in the currency pairs like Euro/Dollar, Dollar/Yen and others. 85% of daily trades are taken by major currencies trading.
Investments usually deal with 4 major pairs: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc or EUR/USD, USD/JPY, GBP/USD, and USD/CHF used to sign these pairs accordingly. These major pairs are considered as the Forex market’s “blue chips.� You will not receive any dividends on the currencies. Well known “buy low – sell high” gives the profit for currency trades. Continue reading
FOREX — the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.
Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. Continue reading