2 New E-Books about Forex Trader's Psychology

Now you can download two more excellent Forex e-books about a role of the traders' psychology in their success or failure (which is without a doubt a more often case) . These e-books are not very big or complicated, just an hour of interesting and useful Forex reading:

• 25 Rules Of Forex Trading Discipline - as the title suggest, a set of rules that are necessary to be followed to be a successful Forex trader.
• Stop Losses Are For Sissies - there is a sarcasm in the title of this e-book, really :-).

FOMC Minutes to Support Dollar?

FOMC (Federal Open Market Committee) released its May 9 meeting Minutes on Wednesday, May 30. As it has been known since May 9 the conclusion of the meeting states that the inflation remains the main concern for the FOMC, while in future FOMC will outlook both inflation and economic growth. Statements presented in the released Minutes generally support this conclusion giving some more power for the USD bulls. This could be seen yesterday on Forex market when EUR/USD hit its new low since April 11 at 1.3406.

EUR/USD Rally and Rollback after Consumer Confidence

Euro showed a really fast and heart-breaking (for some traders at least) rally of 100 pips today before the major daily fundamental event - May Consumer Confidence Index. After hitting its resistance level at 1.3517 EUR/USD calmed down a bit rolling back to 1.3500 level. May Consumer Confidence Index which came out to be 108.0 against 104.5 expected ended Euro rally moving EUR/USD to 1.3475 level. Many other macroeconomic indicators are scheduled for this week, so Forex traders must be aware of possible rallies and rollbacks similar to those seen today.

Forex Trading and Islam

The topic of Forex trading prohibition in Islam is vast and controversial. Many points of view exist on different aspects of on-line Forex trading including - spot trading, futures and options trading, margin trading, overnight interest, etc. The majority of the Islamic jurists agrees that Forex trading can comply with Sharia only if it is spot trading (while futures and options are considered to earn Riba) and if it doesn't involve any overnight interest (or interest hid by commissions, though Muslim traders should know that not all commissions are to hide overnight interest). One of the main point of debate lies in margin trading (almost every transaction in Forex is based on margin) and hedging (it is compared to futures trading usually). Dr. Mohammed Obaidullah of Universiti Tun Abdul Razak (located in Malaysia) discusses this topic in his article - Islamic Forex Trading. It is a well grounded article covering every aspect of Forex trading and providing references to the fundamental Islamic sources. Among other things, Dr. Mohammed Obaidullah proves margin Forex trading to be legal for Muslims, as long as it doesn't involve any Riba (unlike some other Islamic jurists who look at margin Forex trading as forbidden activity). In this articles the Forex hedging is also analysed and is seen as the source of Riba income. I strongly recommend reading this article to all Muslim traders and those who want to start trading Forex while remaining a lawful Islamic believer.

Another Forex Broker

Another Forex broker added to the list - PFG Forex - an on-line brokerage company operated by Peregrine Financial Group (founded in 1980). This Forex broker is registered with CFTC and is a member of National Futures Association. The good thing about it is that it's "only" $1,000 minimum account while giving the trader an opportunity to try high-end trading platforms (not only Forex, but futures and commodities too!). What's quite uncommon for such big brokers - one can open account on-line, sending only scanned passport ID.

EUR/USD Technical Analysis for 5/28-6/1

General trend: bearish or ranging.

Floor pivot points:
3rd Sup__2nd Sup__1st Sup__Pivot____1st Res__2nd Res__3rd Res
1.3272___1.3341___1.3392___1.3461__1.3512___1.3581___1.3632

Woodie's pivot points:
2nd Sup__1st Sup__Pivot____1st Res__2nd Res
1.3337___1.3382___1.3457___1.3502__1.3577

Camarilla pivot points:
4th Sup__3rd Sup__2nd Sup__1st Sup__1st Res__2nd Res__3rd Res__4th Res
1.3376___1.3409___1.3420___1.3431__1.3453___1.3464___1.3475___1.3508

Tom DeMark's pivot points:
Resistance: 1.3486
Support: 1.3366

Fibonacci retracement levels:
100% - 1.3531
61,8% - 1.3485
50,0% - 1.3471
38,2% - 1.3457
23,6% - 1.3439
00,0% - 1.3411

Bad Houses Sales Costs Pips

Forex market was quite predictable today after the data on the Existing Home Sales for April came in 15:00 GMT. This macroeconomic indicator showed very poor results - 5.99 millions against 6.13 millions expected (and 6.15 millions in March). After these data came out EUR/USD gained nearly 50 pips (up to 1.3572) as the low activity in the realty industry can mean a general weakness in the U.S. economy. EUR/USD has almost fully rolled back already. But the great thing is that every Forex trader can always use monthly Existing Home Sales report to gain some fast profit on this news reaction.

Article about Protective Puts in Forex

New article describing an interesting way of using Forex options in a long term trading to improve trader's money management strategy. Article is called "Protective Puts", it is written by Jogn Jagerson - an author of www.ProfitingWithForex.com.

Euro Down to 1.3416, while Pound Regains Strength

EUR/USD touched new its new monthly low at 1.3416. That was a very important movement for Euro bears, but the currency pair bounced back up to high 1.3500 very soon and then flattened down to 1.3460 - showing its volatile nature. Nevertheless, mid-term trend for EUR/USD can be seen as bearish. At the same time GBP returned its positions today on Forex market after Bank of England spoke about increasing interest rates by .50% not the usual and expected 0.25% giving a lot of strength to the Pound bulls. GBP/USD touched 1.9892 and then corrected a bit to 1.9850 level.

Additon to MT4 Expert Advisors

I've added a new expert advisor to MT4 Expert Advisors section of the site - myfxovereasy Expert Advisor + FXOverEasy Indicators. It's my own EA based on FXOverEasy indicators, or more exactly - on their combo by Shimodax from StrategyBuilder forum. Actually this Forex expert advisor trades against FXOverEasy strategy, but it showed very good results on EUR/USD M15 chart. But be careful, it is quite risky, don't trade the money you cannot afford to lose. Don't forget to leave your comment if you use this indicator ;-)

EUR/USD New Lows

Today EUR/USD hit new monthly minimum at 1.3436 since April 12. The most probable reason for this dollar "mini-rally" is the U.S. bonds auction which provoked a lot of USD buying on Forex. Such auctions usually stimulate a demand for the U.S. currency and this time it helps to break the bullish daily EUR/USD trend.

Northfinance Adds New Currency Pairs

Northfinace Forex broker now allows trading a few more minor currency pairs:

• AUDDKK - Australian Dollar vs Danish Krone
• AUDPLN - Australian Dollar vs Polish Zloty
• CHFCAD - Swiss Franc vs Canadian Dollar
• EURHKD - Euro vs Hong Kong Dollar
• EURLVL - Euro vs Latvian Lats
• EURZAR - Euro vs South African Rand
• GBPDKK - Great Britan vs Danish Krone
• GBPNOK - Great Britan vs Norwegian Krone
• GBPSEK - Great Britan vs Swedish Krona
• GBPZAR - Great Britan vs South African Rand
• USDHRK - US Dollar vs Croatia Kuna
• USDLTL - US Dollar vs Lithuanian Litas

These pairs can be interesting for aggressive traders who wish to take more risky and more profitable positions.

EUR/USD Technical Analysis for 5/21-5/25

General trend: bearish.

Floor pivot points:
3rd Sup__2nd Sup__1st Sup__Pivot____1st Res__2nd Res__3rd Res
1.3303___1.3384___1.3446___1.3527__1.3589___1.3670___1.3732

Woodie's pivot points:
2nd Sup__1st Sup__Pivot____1st Res__2nd Res
1.3379___1.3437___1.3522___1.3580__1.3665

Camarilla pivot points:
4th Sup__3rd Sup__2nd Sup__1st Sup__1st Res__2nd Res__3rd Res__4th Res
1.3429___1.3469___1.3482___1.3495__1.3521___1.3534___1.3547___1.3587

Tom DeMark's pivot points:
Resistance: 1.3558
Support: 1.3415

Fibonacci retracement levels:
100% - 1.3608
61,8% - 1.3553
50,0% - 1.3537
38,2% - 1.3520
23,6% - 1.3499
00,0% - 1.3465

Forex Broker with a Wrong Name :-)

A new broker was added to the institutional Forex brokers list today - ECN broker. It doesn't match its name (at least for Forex services), because it is a market maker broker, not an Electronic Communication Network broker. You'll still have to pay your spreads (it offers average spreads) and won't need to pay any commissions. The main reason why I've added this broker is that it is a good opportunity to start trading Forex with a regulated broker that has a low minimum account amount of $200 and allows high leverage - 1:400.

CPI from US to Support Dollar?

Today the April U.S. CPI data cam out a bit higher than the market expected - 0.6% against 0.5%. A higher CPI data can mean a fast increase of the U.S. interest rate by the Fed, which in its turn gives USD a support to rally higher against other currencies. But all in all 0.1% difference can be not enough to significantly move the Forex market in any direction, so it's better to wait for more macroeconomic data.

Serious Take on the Market Behavior

Today I've added a e-book that describes the influence of the Forex traders' behavior, beliefs and psychology on the Forex market itself. The results of the study which is performed in this book indicate that:

1. About 30% of Forex traders use mostly technical analysis.
2. Macroeconimic news is reacted very fast to.
3. Importance of individual macroeconomic parameters varies over the time.
4. Fundamental economic parameters generally have a long term influence on Forex market.

You can download this e-book from my site:

Macroeconomic Implications of the Beliefs and Behavior of Foreign Exchange Traders - by Yin-Wong Cheung and Menzie D. Chinn.

EUR/USD Technical Analysis for 5/14-5/18

General trend: slightly bearish or ranging.

Floor pivot points:
3rd Sup__2nd Sup__1st Sup__Pivot____1st Res__2nd Res__3rd Res
1.3282___1.3372___1.3447___1.3537__1.3612___1.3702___1.3777

Woodie's pivot points:
2nd Sup__1st Sup__Pivot____1st Res__2nd Res
1.3368___1.3441___1.3533___1.3606__1.3698

Camarilla pivot points:
4th Sup__3rd Sup__2nd Sup__1st Sup__1st Res__2nd Res__3rd Res__4th Res
1.3432___1.3478___1.3493___1.3508__1.3538___1.3553___1.3568___1.3614

Tom DeMark's pivot points:
Resistance: 1.3574
Support: 1.3409

Fibonacci retracement levels:
100% - 1.3626
61,8% - 1.3563
50,0% - 1.3544
38,2% - 1.3524
23,6% - 1.3500
00,0% - 1.3461

BunnyGirl Forex Trading Strategy E-book

BunnyGirl - is one of the most popular technical Forex strategies. Although it may look simple - a system utilizing WMA cross, it has a lot of additional conditions and tricks that are necessary for a trader to succeed with this strategy. You can download a quite short e-book describing BunnyGirl strategy rules along with some most important FAQ about this system:

BunnyGirl Forex Trading Strategy Rules and FAQ

EUR/USD Reaches 1 Month Low

EUR/USD reached its one month minimum level today during a fast dollar rally that has been influenced strongly by the yesterday's FOMC statements. Is it a bull trend break, or just a small correction before the new heights? The answer will lie in the next 2 weeks - the next one can be ranging, while the second - bearish, which will show Forex traders a new medium term trend for EUR/USD, bullish weeks will probably return EUR/USD back to bulls.

EUR/USD Ranging before FOMC Meeting Today

After retreating back down to under 1.3550 yesterday, EUR/USD is now slightly ranging while waiting for the FOMC statement (today, 19:15 GMT) - one of the most important and anticipated fundamental events in the Forex trading community. There is almost no doubt that the interest rates will be left intact (5.25% currently). But there are many speculations about what FOMC will say about U.S. economics, inflation expectations and its regulatory policy. Strong positive expectations from FOMC can empower USD for the new bullish trend, while weak or unsure statements made by FOMC may be used by the EUR bulls for the new EUR/USD long positions.

EFX Group and Hotspot FX ECN Forex Brokers

I've added another two ECN Forex brokers which might be interesting for traders focused on scalping strategies:

• EFX Group - good for mini Forex trading, since they allow accounts from $400.
• Hotspot FX - big ECN broker for big Forex traders, no mini Forex, but excellent trading platform and services.

EUR/USD Technical Analysis for 5/7-5/11

General trend: bearish.

Floor pivot points:3rd Sup__2nd Sup__1st Sup__Pivot____1st Res__2nd Res__3rd Res
1.3379___1.3457___1.3523___1.3601__1.3667___1.3745___1.3811

Woodie's pivot points:
2nd Sup__1st Sup__Pivot____1st Res__2nd Res
1.3454___1.3518___1.3598___1.3662__1.3742

Camarilla pivot points:
4th Sup__3rd Sup__2nd Sup__1st Sup__1st Res__2nd Res__3rd Res__4th Res
1.3511___1.3550___1.3564___1.3577__1.3603___1.3616___1.3630___1.3669

Tom DeMark's pivot points:
Resistance: 1.3634
Support: 1.3490

Fibonacci retracement levels:
100% - 1.3678
61,8% - 1.3623
50,0% - 1.3606
38,2% - 1.3589
23,6% - 1.3568
00,0% - 1.3534

Forex Strategy Books

New Forex strategy e-books are available for download from my site. Both books are more suited for Forex newbies than advanced traders, but are worth reading for both:

• Microtrading the 1 Minute Chart - it's about scalping on the shortest term chart and it won't mean a lot of new reading for experienced Forex traders.
• ICWR Forex Trading Strategy - this strategy e-book covers Impulsive/Corrective Waves Retracement strategy describing its rules and principles in an easy-to-understand way.

3 New Forex Articles

Three new articles covering two different Forex trading aspects have been added to the Forex article section today. These aspects are getting Forex education and Forex technical analysis. All three articles are written by the same author - Sacha Tarkovsky and are very professional pieces of Forex information:
FOREX Education - Thinking Of Buying FOREX Advice? Read This First - about how to stop yourself from buying something that will not help you become a good Forex trader at all and how to avoid losing precious time and money on wrong education courses.
Gann Angles - A Unique Powerful Tool For Trading Profits - Gann Angles as one of the prominent technical analysis system and its application in the Forex trading.
Fibonacci Numbers - Trade For Huge Profits With This Unique Tool! - Fibonacci numbers and Fibonacci retracement levels should be well known to all technical Forex traders - they are great tool to determine the important market levels in Forex.

Euro Unsure in front of New Records?

Euro is floating in a rather tight range since it hit its new long term high at 1.3688 on 04/27. The corridor for EUR/USD seems to be established between 1.3670 and 1.3590 levels. Even poor fundamental data seen on Monday hasn't provided any help for Euro in breaking the new record. Possible reasons for this I see in two factors. First - French elections, although their outcome is known with almost no doubts, this factor still possesses some threat to European currency. Second - technical resistances - current EUR/USD rate is near several resistance levels (from long term highs to various waves ends), while weekly RSI is showing an overbought condition. We'll have to wait for the next week to see if Euro is still able to rally and break new heights.