Carnival of Forex Trading — February 3, 2008

Welcome to the February 3, 2008 edition of Carnival of Forex Trading.

Nate presents Scalping: Don't Lose Your Head posted at Legion Forex, saying, "Become a legionnaire!"

Raymond presents Invest In Gold As A Hedge Against Inflation, Recession, and The Weakening Dollar posted at Money Blue Book.

Jed Norwood presents Having Profitable Losses posted at Forex Strategy Secrets, saying, "Forex trading is a business that carries risk but that doesn't mean risk has to be a factor that scares you away. simply learn how to manage your risk and learn from mistakes." Another author from this site — ioventuresinc.com — presents How Much Should You Trade?, saying, "This post is just one of the tips and tricks offered to Forex Traders. Learn the ins and outs of Forex trading"

James D. Brausch presents TMI (Too Much Information) posted at Internet Business Blog, saying, "To succeed with trading (or any financial goal), you have to stop endlessly reading books, create a basic plan, and ACT."

Sagar presents 10 Reasons to Be Critical of the Federal Reserve posted at Currency Trading.net.

Vahid Chaychi presents How To Use Fibonacci Numbers in Forex and Stock Trading posted at Weboma.com, saying, "Fibonacci levels can act as strong support/resistance. We have to consider them in our trading strategies." The same author also suggests reading The Language of Japanese CandleSticks — The Only Real Time Indicators, saying — "Candlesticks are the best indicators of the market psychology. We have to learn their language."

That concludes this Carnival of Forex Trading edition. This month I've got more interesting articles than usually. So you can even chose from something. I hope that it would as interesting for you as it was for me.

Forex Technical Analysis for 02/04-02/08 Week

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: sell.
EUR/JPY trend: sell.

Floor Pivot Points:
Pair	3rd Sup	2nd Sup	1st Sup	Pivot	1st Res	2nd Res	3rd Res
EUR/USD	1.4390	1.4526	1.4662	1.4798	1.4934	1.5070	1.5206
GBP/USD	1.9230	1.9438	1.9543	1.9751	1.9856	2.0064	2.0169
USD/JPY	103.92	104.82	105.67	106.57	107.42	108.32	109.17
EUR/JPY	151.70	153.63	155.63	157.56	159.56	161.49	163.49

Woodie's Pivot Points:
Pair	2nd Sup	1st Sup	Pivot	1st Res	2nd Res
EUR/USD	1.4526	1.4663	1.4798	1.4935	1.5070
GBP/USD	1.9438	1.9543	1.9751	1.9856	2.0064
USD/JPY	104.82	105.67	106.57	107.42	108.32
EUR/JPY	153.63	155.63	157.56	159.56	161.49

Camarilla Pivot Points:
Pair	4th Sup	3rd Sup	2nd Sup	1st Sup	1st Res	2nd Res	3rd Res	4th Res
EUR/USD	1.4649	1.4724	1.4749	1.4774	1.4824	1.4849	1.4874	1.4949
GBP/USD	1.9477	1.9563	1.9592	1.9620	1.9678	1.9706	1.9735	1.9821
USD/JPY	105.57	106.05	106.21	106.37	106.69	106.85	107.01	107.49
EUR/JPY	155.48	156.56	156.92	157.28	158.00	158.36	158.72	159.80

Tom DeMark's Pivot Points:
Pair:	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
Resistance:	1.4866	1.9804	107.87	158.56
Support:	1.4594	1.9490	106.12	154.63

Fibonacci Retracement Levels:
Pairs	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
100.0%	1.4933	1.9958	107.46	159.48
61.8%	1.4829	1.9838	106.79	157.98
50.0%	1.4797	1.9802	106.59	157.51
38.2%	1.4765	1.9765	106.38	157.05
23.6%	1.4725	1.9719	106.12	156.48
0.0%	1.4661	1.9645	105.71	155.55

Falling Nonfarm Payrolls Fail to Support EUR/USD

Nonfarm payrolls is one of the most important indicators of the U.S. economy’s health. Market analysts expected it to grow up in January by 50,000. But in reality it didn’t grow at all, instead it dropped by 17,000. At first, this fueled dollar bears’ activity and drove EUR/USD up close to the historical borders, but then, after release of some other important indicators, it went down to about 1.4800.

The part of the employment report was the U.S. unemployment rate in January — it fell down from 5.0% to 4.9%.

Construction spendings in December fell down by 1.1%, faster than the analysts expected (0.5% drop).

Non-manufacturing ISM report on business activity in January resulted in PMI at 50.7%, showing an increase from the last month’s 48.4% and that it’s significantly better than the forecasted 47.5%.

Index of Consumer Confidence, reported by Reuters and University of Michigan, fell to 78.4 in January from 80.5 in December. Expected value for this indicator was 79.0.