Hi there, my name is Ivan, FX trader. After studying varies sources of information for the past few years, my understanding of the FX market has improved dramatically, with this blog simply intending to share with you all a journey within my mind. When I make it to full-time trading, I know the first person I should be grateful to is an Aussie PA trader named Jonathon; He has been inspirational and an enormours influence to gauge where the money flows to. His trades can be followed at http://forexpriceactiontrader.blogspot.com/ . What price is telling you is key, as it always whispers in low or high intensity what market intentions are. I do not endorse the use of any indicators, as they are lagging in nature; analysis should be based on pure price action. Besides, other factors like sentiment, fundamentals, risk control, rock-solid discipline, thousands of hours readings charts, also make up the equation to succesfully ride the FX waves. When entry triggers are detected, I act without hesitation, letting the market do its thing. Please note, information and opinions contained in this blog are for educational purposes only and do not constitute trading recommendations, thus will not take responisbility for any losses viewers may have. Trading FX carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. You should not invest money that you cannot afford to lose.







Sunday, 16 January 2011

DXY CONFRONTED WITH KEY SUPPORT


Hi guys a heads-up before going to bed and get ready for a new week of trading. All of you thinking to short any USD pair, should also be well aware of where the DXY is at present. The US Dollar index has been losing steam recently, but just check the area of support, quite a critical level indeed. I am not saying it may rebound, but certainly the area has proven to be quite reliable as a rebounding level, which will translate on the strength of most USD crosses.

Here is a brief explantion of the US Dollar index, and the impact it may have in other currencies if we finally see the price snapping back up.

"It is a weighted geometric mean of the dollar's value compared only with".

Euro (EUR), 57.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight and
Swiss franc (CHF) 3.6% weight.
Japanese Yen (JPY) 13.6% weight.




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