Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Read the full risk disclaimer and privacy policy on trading Forex online.

Raghee Horner
Feb. 9, 2010 Webinar
Interbank FX Custom Tools

Part 1/9 - http://www.youtube.com/user/InterbankFXvideos#p/u/32/HzrwlMZuWsw
1)    Raghee Introduces herself,   00:00 – 00:25
2)    Forex Trading Disclaimer,   00:26 – 1:15
3)    What we will be talking about today,  1:16 – 3:07
4)    A look at the different tools from www.ibfx.com,   3:08 – 3:57
    a.    Download the tools from http://www.ibfx.com/Tools/
5)    Back to the trading platform, brief review of last week’s webinar,   3:58 – 5:09
6)    Raghee’s philosophy on indicators,   5:10 –7:29
7)    The IBFX- MACD Traditional (MACD Histogram),   7:30 – 8:40
8)    A trader needs an understanding of the tools they are using,   8:41 – 10:05

Part 2/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/23/XBEuLwWr8YA
1)    Importance of understanding an indicators use in a market cycle,   00:00 – 00:35
2)    Indicators are for confirmation,   00:36 – 1:20
3)    The significance of the default settings of your indicators,   1:21 – 3:17
4)    What a Histogram looks like,   3:18 – 5:00
5)    Best MACD market cycle setup,   5:01 – 7:33
6)    How to download the IBFX - MACD Traditional from http://www.ibfx.com/Tools/,   7:34 -  10:03

Part 3/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/22/_rAns-SqOmk
1)    If you have questions please email me at raghee.horner@ibfx.com,   00:00 -  00:40
2)    Answering Questions from audience,  
    a.    Creating a Profile,   00:40 – 1:57
    b.    How do you decided the market trend,   1:58 – 2:43
    c.    Do you use Fibonacci,   2:44 – 3:30
    d.    This is a 200 SMA,   3:31 – 3:44
    e.    Differences of the MT4 MACD and the IBFX - MACD Traditional,   3:45 – 5:04
3)    Review of the IBFX - MACD Traditional,   5:05 – 6:20
4)    Two ways to calculate the Histogram,   6:21 – 7:01
5)    Raghee uses the IBFX - MACD Traditional calculation,   7:02 – 7:40
6)    It will all come together as the go through each of our sessions,   7:41 – 8:20

Part 4/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/23/N3u3PGQecYM
1)    Introduction to the IBFX – Instrument Monitor,   00:00 – 00:55
2)    Warning about Allowing DLL Imports on third party software,   00:56 – 2:30
3)    How to use the IBFX – Instrument Monitor,   2:31 – 4:00
4)    About the different currencies characteristics and their relations,   4:00 – 7:45
    a.    www.bis.org
5)    How to read the IBFX – Instrument Monitor,   7:46 – 8:33
6)    Introduction to the next topic, Pivots,   8:34 – 8:57

Part 5/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/20/DlNvmsWL0rM
1)    What the IBFX - Daily Pivots look like on your Chart,   00:00 – 00:55
2)    A discussion about Pivots, 00:55 – 2:23
3)    How to Read the IBFX – Daily Pivots,   2:34 – 3:02
4)    A discussion about Open, High, Low, Close,   3:03 – 4:43
5)    The Pivots are psychological support and resistance levels,   4:44 – 5:08
6)    Secondary psychological level influences,   5:09 – 5:33
7)    Look for multiple confirmations of support and resistance levels,   5:34 – 7:35
8)    The Pivot Level is the most important level psychologically,   7:36 – 9:27
9)    Moving into the IBFX – CPR,   9:28 – 9:50
10)    IBFX - Weekly Pivots on the Daily Chart,   9:51 – 10:24

Part 6/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/19/Zjp-cV6x1gU
1)    Why Raghee likes the IBFX – CPR (Candlestick Patter Recognition system),   00:00 – 1:53
    a.    Download it from http://www.ibfx.com/Tools/
2)    How to use the IBFX – CPR,   1:54 – 3:54
3)    The Three Outside pattern,   3:55 – 7:32
4)    The Three Inside pattern,   7:33 – 10:00

Part 7/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/18/ajwY40vEE0Y
1)    Looking for other patterns,   00:00 – 00:55
2)    The Cloud/Piercing pattern,   00:56 – 3:50
3)    The Solders/Crows pattern,   3:51 – 7:27
4)    How to read the commentary in the IBFX – CPR legend,   7:28 – 10:03

Part 8/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/17/x0LO4cJuqGo
1)    How to read the commentary in the IBFX – CPR legend, and examples,   00:00 – 3:23
2)    There is no “Best” pattern,  3:24 – 5:32
3)    We are building up to the Super Saturday Session,   5:33 – 6:23
4)    Email me your questions at raghee.horner@ibfx.com,   6:24 – 7:14
5)    Answering Questions from audience,  
    a.    IBFX Tool installation,   7:15 – 8:00
    b.    Is there a MACD interpretation for a ranging market,   8:01 – 10:04

Part 9/9 – http://www.youtube.com/user/InterbankFXvideos#p/u/18/2UqVHt3f-C8
1)    Answering Questions from audience,  
    a.    Is there a MACD interpretation for a ranging market, Continued,   00:00 – 1:57
    b.    How to add a 200 Period Close SMA to your chart,   1:58 – 2:50
    c.    We will discuss market cycles in an upcoming webinar,   2:51 – 3:56
    d.    Another warning about Allowing DLL Imports on third party software,   3:57 – 4:53
    e.    These indicators can be used on any time frame,   4:54 – 5:26
    f.    The USDCAD is known as the “Looney”,   5:27 – 5:46
    g.    Email me your questions at raghee.horner@ibfx.com,   5:47 -  6:30
    h.    Differing Pivot calculations,   6:31 – 7:07
    i.    How do I attach an indicator to my chart,   7:08 – 8:51
    i.    Download the tools from http://www.ibfx.com/Tools/
    j.    If you have questions about what we have covered here please email me,   8:52 – 9:25
    k.    Thank you for attending,  9:26 – 9:58

Raghee Horner
Feb. 2, 2010 Webinar
Introduction to MetaTrader 4

Part 1/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/32/HzrwlMZuWsw
1) Forex Disclaimer,   00:00 – 1:06
2) Participating Trader Survey results,   1:07 – 3:56
3) Summary of upcoming webinars,   3:57 – 5:28
4) Analogy of the trading platform,   5:29 – 7:15
5) If you have questions email me,  7:16 – 8:25
    a. raghee.horner@ibfx.com
6) How I like to present,   8:26 – 9:29
7) Getting started with charts and customizations,   9:30 – 9:45
8) Opening a new chart, 9:46 – 10:04

Part 2/8 - http://www.youtube.com/watch?v=vqFnR2gC9P4
1) To change an open chart to a different pair,   00:00 – 00:35
2) Drag and drop from Market Watch to update a chart or to change pair in chart window,   00:36 – 00:50
3) Customize your Market Watch Window,   00:51 – 4:30
4) Managing Tool Bars along the top/ Maximizing your screen real estate,   4:31 -  9:10 
5) Managing your Terminal Window,   9:11 – 10:06

Part 3/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/30/N1UagW1UJo0
1) Managing your Terminal Window, Continued,   00:00 -  00:50
2) Customizing your chart colors,   00:51 – 3:20
3) Adding an indicator to your chart, 200 Period Close SMA,   3:21 – 4:40    
4) Adjusting the chart grid,  4:41 – 5:40
5) Creating a chart template, default template,   5:41 – 6:38
6) Creating a multiple chart layouts, managing your screen real estate,   6:39 – 8:54
7) Creating Profiles, preset collection of charts,   8:55 – 10:06

Part 4/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/29/aWV_qdvI71A
1) Creating Profiles, preset groups of charts – Continued,   00:00 – 1:06
2) Adjusting order of Pairs in the Market watch,   1:07 – 1:35
3) Toggling between Profiles,   1:36 – 2:25
4) Answering Questions from audience,  
    a. Raghee’s Email Address,  2:26 – 2:49
    b. High/Low in the Market Watch numbers are for the current day’s session,  2:50 – 3:00
    c. Platform Fonts are not customizable,  3:01 – 3:53
    d. Go to IBFX’s website for information on their spreads,   3:54 – 5:05
        1. http://www.ibfx.com/Trade/Performance.aspx
5) To use keyboard shortcuts, or to use your mouse,   5:06 – 5:43
6) Open a new order form,  5:44– 5:55
7) See spread visually in the tick chart on the order form, or look at the tick chart in the market watch,   5:56 – 6:35
8) Useful tools and icons along the top,
    a. Chart Shift,   6:36 – 7:35 
    b. Auto Scroll,   7:36 – 8:10
    c. Zoom In, Zoom Out,   8:11 – 8:28
9) Why we are learning to use the platform effectively,   8:29 – 9:00
10) You get to help me plan for future webinars, email me your questions,   9:01 – 10:06

Part 5/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/28/65GgvaGaaSg
1) Answering Questions from audience,   00:00 – 00:14
    a. Spreads,   00:15 – 00:30
    b. Yes, this season being recorded,   00:31 – 00:46
    c. Expert Advisors are for automated trading,   00:47 – 2:15
    d. The “Cable” is the GBP, and the Nicknames for other pairs,   2:16 – 3:34
    e. Yes, you can set alerts.  How to create, modify, and delete an alert,   3:35 – 7:21
    f. There is no limit to the amount of templates you can create that I am aware of,   7:22 – 7:34
    g. Time frame options, default options are all that are available,   7:35 – 8:06
    h. How to change the charts and create a profile – review,   8:07 – 9:45
2) Using the New Order Form to place your orders, 09:46 – 10:06

Part 6/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/27/pr1LMrIGZlk
3) Using the New Order Form to place your orders, order types, etc,   00:00 – 10:06
a.   Pending Order is the client's commitment to the brokerage company to buy or sell a security at a pre-defined price in the future. This type of orders is used for opening of a trade position provided the future quotes reach the pre-defined level. There are four types of pending orders available in the terminal:
i.    Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having fallen to a certain level, will increase;
ii.    Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having reached a certain level, will keep on increasing;
iii.    Sell Limit — sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having increased to a certain level, will fall;
iv.    Sell Stop — sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having reached a certain level, will keep on falling.

    * Stop-loss or limit orders do not always guarantee a fill, especially during fast-moving market conditions, such     orders may not be filled as placed, and substantial losses may still occur.

From the MT4 Userguide

Part 7/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/26/aK8cODTqERw
1) Using the New Order Form to place your orders, order types, etc - Continued,   00:00 – 1:15
2) Knowing your Race Car, the trading platform,   1:16 – 1:45
3) The trading tools at www.ibfx.com/Tools/ ,   1:46 – 2:03
4) Just getting started here  2:04 – 2:33
5) Free Education at www.ibfx.com/Education/   2:34 – 3:00
6) Open a mini account and get $50 free,   3:01 – 3:51
7) This webinar series,   3:52 – 4:20
8) Answering Questions from audience,
    a. Single monitor setups,   4:21 – 4:55
    b. Navigator window and Favorites,   4:56 – 5:55
    c. Toggling between Profiles,   5:56 – 6:30
    d. Can each chart in a profile have different indicators,   6:31 – 6:54
    e. Custom indicators, Warning you should be aware of,  6:55 – 8:20
    f. My email address, raghee.horner@ibfx.com,   8:21 – 8:45
    g. Chart Shift,   8:46 – 9:15
    h. Spread variance,   9:16 – 10:06
        1. www.bis.org

Part 8/8 - http://www.youtube.com/user/InterbankFXvideos#p/u/25/yUsPLZYNNtU
1) Answering Questions from audience,
    a. Spread variance,   00:00 – 0:25
    b. These sessions will be made available later,   00:26 – 00:59
    c. Connection Status,   01:00 – 1:27
    d. The Data Window, OHLC,   1:28 – 2:33
    e. Thank you for attending, feel free to email me,   2:34 – 3:25

Interbank FX offers trading support via phone or live chat. If you're experiencing problems with your trades, or would like to place an order via phone or live chat, simply click on Live Chat or Phone. 

Contact an Interbank FX client services representative via phone or live chat:
•    When access to the internet is not available
•    If you fail to receive a confirmation for an order
•    When you experience internet failure or failure to connect to the Interbank FX server
•    When experiencing any problems in general

You may also receive support from an Interbank FX client services representative via email.  However, if your issue requires immediate attention please use the phone or live chat options so that we can assist you as quickly as possible. Placing, modifying or closing a trade is not permitted by email.


**Trading in the off-exchange retail foreign currency market is one of the riskiest forms of investment available. Our complete risk disclaimer can be found here:  http://www.ibfx.com/Legal/RiskWarning.aspx

With my nearly twenty year background in commodity futures it’s not surprising to me that I often gravitate to “commodity currencies” like the USD/CAD and AUD/USD. I love the synergy these two pairs have with crude oil and the commodities index, respectively.

The price action in crude oil as prices are finding support above the key 80.00 level is pushing the Canadian Dollar higher against the U.S. Dollar. The value of the Canadian Dollar and strength of the Canadian economy has a strong correlation to the price of crude oil. Consider that a strong crude oil market is also usually a reflection of a weaker U.S. Dollar. So the impact on the USD/CAD is double: The weaker U.S. Dollar strengthens crude oil prices while allowing the USD/CAD to trade lower.

The USD/CAD weakness has formed a Channel Down pattern and prices have recently broken the 1.0100 level. This puts the USD/CAD under 100 pips from parity. This means the descent from current prices will be watched much more closely than any other sell off. The Channel Down support level was broken as prices pierced 1.0100 and this triggered a pattern breakdown. That makes this Channel a continuation pattern. An alternate trend-following set up for this pattern could be a short sell off the downtrend line resistance at 1.0124.

The Continuous Commodity Index is slightly stronger mainly because of the weakness in the U.S. Dollar today. The dollar broke the 80.00 level to the downside after rallying above it during Monday’s session. Today’s dollar weakness is allowing commodities to rally. I also want to add that the indecision in the dollar's trend day to day has made trading the dollar correlated pairs (EUR/USD, USD/JPY, GBP/USD, USD/CHF) a challenge on 30 and 60 minute time frames. I think that’s why my preference over the past weeks has been to focus on four hour and five minute charts - playing either the very short term or very long term intraday moves. But comm-dollars like the USD/CAD and AUD/USD have presented exceptions to this.

The AUD/USD has benefited from the commodities movement and trended higher across both the 30 and 60 minute time frames. The Rising Wedge on the 30 minute chart is setting up with a strong uptrend and is pulling back to the uptrend line support of the pattern. This would be a trend following entry set up by a pullback or correction to support.

The 60 minute chart of the AUD/USD is also trending higher within a rising wedge pattern.

Both the 30 and 60 minute charts are showing support and a possible swing buy trigger at 0.9215. A move higher on the AUD/USD would depend upon continued dollar weakness and commodities strength.

*Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions.  The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.  Read the full risk disclaimer and privacy policy on trading Forex online.

In February, Interbank FX held a series of webinars featuring forex professional Raghee Horner. These popular webinars were recorded and are now available on YouTube! These Raghee Horner webinars cover the following topics:

1.MetaTrader 4 Trading Platform Introduction

2.Interbank FX Custom Tools: MACD Traditional,Instrument Monitor, CPR and Pivot Points

3.Understanding Price Action: Drawing Trend Lines, Using PRS Chart Patterns, Fibonacci Levels and Market Cycles

4.Ideas for Trending and Non-Trending Markets

We have many more webinars, tutorials and educational videos available on our YouTube channel – visit our channel page to start watching (you can also subscribe to our YouTube channel to be made aware of new videos as we post them). The Interbank FX Team

One of the benefits to automated chart pattern recognition is the ability to allow a piece of software to identify multiple chart patterns without the bias of direction or an existing position in the market. Of course a piece of software can also scan multiple time frames and pairs simultaneously-- and this is something that an individual trader would likely not be able to do with the same speed and accuracy.

That being said, there are factors that the human eye and discretion can assist with. This is important to know since confirming a pattern alert and making the leap to a potential trade set up is one that should be done with an awareness of market direction. The IBFX PRS platform is a powerful piece of software that can scan for chart patterns across multiple pairs and time frames. In this way it is much like a trading partner scanning for potential opportunities. Notice the wording “potential opportunities” because not every chart pattern is necessarily a potential trade.

Some of the main discretionary factors are time frame, time of the alert, market direction, and of course the pattern itself. One of the main ideas behind pattern formation is to understand trending versus non-trending patterns. The PRS platform does take this into consideration with the Initial Trend reading. Many of you may already be using or at least be familiar with my 34EMA Wave and use that to determine the market cycle of the time frame that is being analyzed. Initial Trend is another tool in that same line of analysis.

Here is an example of the 30 minute EUR/USD from earlier today. The pattern alerted was a Triangle. This formation is a non-trending or consolidation/congestion pattern. A Triangle should ideally form in a sideways market which is also known as “accumulation”. This market cycle can be identified by a flat 34EMA Wave angle and also by a low Initial Trend reading. The Initial Trend reading on the pattern alert (below) shows a two bar reading. The highest reading is ten bars and that indicates a strong trend that preceded the pattern’s development. A low reading such as this (zero to three bars) indicates a quiet sideways market. With the confirmation of the pattern’s development within the ideal market cycle (sideways) a breakout/breakdown approach can be taken.

Waiting for breakouts or breakdowns can also be called “momentum trading” since it’s the markets next leg of momentum from the sideways market that traders are watching for. Notice here the next leg was a breakout higher through the downtrend line resistance of the pattern. Price then followed through higher towards the Forecast area which is an area of resistance identified by the PRS.

Take a look at the current view of the EUR/USD on the 30 minute chart. Now remember this is after the break higher has followed through creating more strength in the market. Prices have rallied and may be getting “toppy” here as resistance looms close by with recent highs at 1.3784 and 1.3800. The four bar reading on the Initial Trend is pointing to a distribution market. Distribution is a more volatile sideways market cycle that is often found at the top of an uptrend as traders decide whether to move the market higher or correct. The wide range in opinion is what creates the wide price range.

Because the Initial Trend is four bars this shows a slight tendency away from quiet sideways market and the likelihood for distribution (a four to six bar reading). In distribution, highs are more likely to lead to exhaustion and therefore be sold or “faded”. So this means as prices approach the past highs, selling pressure may be building. This would lead some traders to short the resistance of the Rising Wedge pattern (above) or wait for prices to pierce the support level of the pattern.

*Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions.  The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.  Read the full risk disclaimer and privacy policy on trading Forex online.

Forex and commodity trading is conducted on 'margin'. This means that a cash deposit, usually much smaller than the underlying value of the commodity or currency contract, is required in order to trade. For example, a broker might require only US $1,000 in the trader's account in order to trade a US $100,000 currency position. The US $1,000 is referred to as 'margin'. This amount is essentially collateral to cover any losses that you might incur. Since nothing is actually being purchased or sold for delivery, the only requirement, and indeed the only real purpose for having funds in your account, is for sufficient margin.

Margin should reflect some rational assessment of potential risk in a position. For example, if a currency is very volatile, a higher margin requirement would normally be justified. One common rule of thumb is a worst-case one day move in the market. So if a US $100,000 currency position is unlikely to move by more than 1% (or US $1,000) in a 24 hour period, a US $1,000 margin requirement is probably reasonable. If, however, the currency or commodity in question is highly volatile and is likely to move by, say, US $3,000 or more (or 3%, as is often the case with certain NASDAQ stocks and some commodities) it would put the broker at increased credit risk to require only a US $1,000 margin deposit. Note that margin available in your trading account is based on account equity, not account balance. The equity is the most accurate measure of the value of your account, as it takes into account unrealized gains or losses.

100:1 margin is available for all pairs except the USD/SGD and the USD/ZAR which are 25:1 maximum.

For more information on how much margin is required to place a trade, click here.


*The leveraged nature of FX trading means that any market movement will have an equally proportionate effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.

**Trading in the off-exchange retail foreign currency market is one of the riskiest forms of investment available. Our complete risk disclaimer can be found here:  http://www.ibfx.com/Legal/RiskWarning.aspx

The off-exchange retail foreign currency (Forex) community has seen an outpouring of support in opposition to the 10:1 leverage limitations—with over 7,000 public comments submitted to the CFTC.

In fact, several lawmakers have raised concerns about the negative impact this would have for the U.S. retail Forex market:

House Lawmakers Concerned On CFTC Retail Forex Leverage Proposal

Senator Orrin Hatch Letter to Chairman Gensler

There is still time to make your voice heard. We encourage you, if you haven’t done so already, to speak up on behalf of this issue. Public comments will still be accepted up until March 22, 2010.

As we’ve stated before, we stand behind the belief that you, our customers, should be given the freedom and right to choose the amount of leverage that is appropriate for your individual desired risk. This basic principle of 'choice' is in jeopardy by the proposed CFTC regulations.

To offer a bit of background, the CFTC was created in 1974 with a mandate that would prohibit the CFTC from creating any anti competitive rules and regulations in regards to its members. As we can see, 10:1 leverage would do just that. This change would create an anti-competitive environment for Forex brokers in regards to competition with banks not regulated by the CFTC. In addition, 10:1 leverage would also allow the entire United States Forex community to be uncompetitive with global competitors.

Interbank FX supports 99.9% of the proposed CFTC rules, excluding the leverage requirements. In addition, we support the original Farm Bill in 2008 that allowed the CFTC more authority over FX dealers. Since 2008, Interbank FX has required all money managers and all solicitors to be regulated with the NFA—instilling a safe and well regulated trading environment.

As always, we want the best for our traders. We hope you’ll join forces with us to prohibit the proposed leverage requirements!

Sincerely,

Todd Crosland, Chairman and President, Interbank FX

Listen to Todd Crosland's Radio Interview with All Things Forex: March 11, 2010:

*Remember, trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.

The movement today across the intraday EUR/USD reflected yet another day of slight upward strength for the U.S. Dollar. I watch the U.S. Dollar Index because it is the currency that affects the pairs I trade: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, and AUD/USD. While do I venture into cross rates, my main pairs are dollar correlated. This has as much to when with when I trade as with the liquidity in the pairs I trade.

When I trade is open to the schedule of my day. That’s the flexibility we have in forex. Whether it is the Asian, European, U.K., or U.S. session my preference is for the pairs I listed above. My main trading hours however are focused on the overlap between Europe, the U.K., and the U.S. These hours are 7:00am to Noon EST.

The EUR/USD trades inverse to the movement on the U.S. Dollar index. The U.S. Dollar Index is a futures contract that reflects a basket of nine currencies which include the euro, Swiss franc, pound, Canadian dollar and yen. When the dollar in strong, the EUR/USD moves lower. The rally we’ve seen in the U.S. Dollar Index since November 2009 in still intact but the market has begun to consolidate between 81.34 and 80.53. This is important to note because without more U.S. Dollar upside, the EUR/USD could (and had begun) to form a bottom between 1.3453 and 1.3433.

This bottom and subsequent sideways movement on the daily chart of the EUR/USD could make the intraday charts a little tricky to find follow through on. The range certainly is wide enough for intraday volatility and movement. However being aware of current price action in relation to the daily chart’s range will be important when exhaustion near the ceiling or floor reverses the market direction.

Currently there could be some interesting trend following opportunities on the 60 minute chart if prices can rally to the 34 period EMA low waiting at 1.3694. This level could provide an opportunity to short with the current mark down cycle on this time frame and capitalize on 1.3700 major psychological level resistance.

The 50% Fibonacci Level is also plotting at 1.3699 which will potentially provide further resistance.

During news, plan on the spreads widening and if you are trading with a Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at the prevailing market price after the release, and this market price could be significantly different from your desired price of your entry order.

Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions.  The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.  Read the full risk disclaimer and privacy policy on trading Forex online.