We are still holding long EURUSD since 1.5480 and we expect it will continue to move north with target at least 1.5900. Todays German IFO should provide good buying opportunity if the news come out lower than expected and continue bullish momentum if IFO better than expected.
Please take note that rising gold and oil will continue to weight on dollar. Moreover, the headline from US such as housing and employment weakness will further strengthen dollar bearishness.
Choppy price action will continue to dominate the market while any downmove should provide better opportunity for trader to add long position for major pair
Good luck in your trade
We monitor closely the development of EURUSD on the last few session and today we saw some good trendline resistant breakout that could kickout bull out of Dollar!. MACD an RSI printing positive reading as well to justify trend line break. Checkout our image below for clear picture of what we are talking about
We wish we are right. Yes, we are 90% sure that yen is going to gain strength from now on. Reason? More and more corporate earning miss estimate off late and that will bring Yen cross proxy ie S&P and DOW down. Good opportunity for medium to long term trader to book few hundreds / thousands pips.
We are selling EUR/JPY at current level ( 164.50 with no SL and TP at the time being )
Wish u big luck in your trading!
Interbankfx (www.ibfx.com) today announced that they has reintroduced the non-swap (swap free) account for eligable clients that unable to earn or pay interest due to religious reasons (Muslim). These accounts will earn or pay a weekly fee based on the trades that remain open after the market closes on Friday.
How it works?
On the circular released by the company, they quotes The “no swap accounts system” is a process that will run each weekend, and identifies orders that were open after the Friday close. (If an order is opened after the Sunday open and is closed before the Friday close, there is no debit or credit for fees.) The system then calculates a fee based on the fee schedule (see below), the number of days the order was open for that week, and the number of lots traded. For each of these open orders, the system adds a “Balance” item to the relevant account with a formatted comment code, which includes a comment, date, and ticket number. The code will appear as follows: “fee mm/dd/yy #ticketnum.”
No-swap trades that remain open after Friday close will be debited or credited a fee based on the table to the left.
Fee Structure
Pair Buy Sell
EURUSD $2 -7
USDJPY $5 -11
GBPUSD $12 -16
USDCHF $2 -5
USDCAD -1 -1
AUDUSD $8 -12
NZDUSD $9 -15
EURGBP -9 $2
EURJPY $9 -18
EURCHF $3 -9
GBPCHF $10 -19
GBPJPY $21 -30
AUDJPY $12 -20
CHFJPY $2 -9
EURCAD $1 -7
EURAUD -12 $5
AUDCAD $6 -13
AUDNZD -7 $1
NZDJPY $12 -21
More to come for EURUSD. Despite verbal intervention from G7 officials about overvalued EURO and weak DOLLAR, EURO maintained its uptrend, erasing monday 130pips gaps.
What’s Next?
We strongly believe that fundamental is the main thing in determining currency value. Combination of stong fundamental ie, sound economic growth, high inflation will further boost EURO value towards 1.6000 or more in the near term.
US Economy
US economic release continue to print horrific data. three month in a row job loss, more to come subprime mortgage problem and high stockpiling of unsold housing inventory will continue to weight Dollar.
Interest Rate Differential.
Most economist forecast a further rate cut by the FED on the next meeting while ECB will hold interest rate at multi year high at 4%. This will attract CARRY Traders to hold EURO against DOLLAR.
Conclusion
There is no reason to hold Dollar. In other words, STAY AWAY FROM DOLLAR!
How to make money from DOLLAR weakness?
- Convert your DOLLAR based forex account to other currency such as EURO, YEN and AUD
- Buy other currency against DOLLAR on retracement.
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