Forex Blog

Today EUR/USD renewed its long term maximum once again - 1.3842 is the highest rate since the November 1995. The lack of important economical releases for this day didn’t stop EUR/USD bulls from holding Euro above the crucial 1.3800 mark. But how will EUR/USD behave in the near future? Will it go for 1.4000 and then for the new absolute historical maximums? Or will it just stuck in the 1.3800-1.3900 range until the bearish force will pull it down? Let’s look at this EUR/USD weekly chart:

Don’t be confused with the red arrow - it’s just a purposed direction for the next medium term market movement. As seen on the chart a “W” formation of the Wolfe Waves theory can be clearly recognized within the first 4 red-marked waves. The next wave should follow as the correctional for these four. Looking at the chart this forecast is quite obvious. But I am almost sure that before the correction will start (which in my opinion will last for 4-5 weeks with the bottom around 1.3600) current bullish wave will live for another one or two weeks leading EUR/USD to around 1.3900 level. But nevertheless, even if the above mentioned correction will take its place, the further EUR/USD behavior is more bullish-orientated with the possible 1.3400-1.34500 targets by the end of 2007.

An interesting broker with both Metatrader 4 platform for standard and mini accounts and Currenex advanced trading platform for ECN Forex trading – Swissnetbroker is a Switzerland based Forex brokerage company aiming at both retail and institutional trading services markets. Retail traders will like their MT4 platform and pretty low minimum of $200 with scalping trading style allowed, while big traders will get all the advantages of Currenex ECN platform with 0 pips spread. As for the disadvantages of this broker – only wire transfer deposit/withdraw option and quite a long account registration process.

A rich day for the economical news releases from United States was today.
First, the weekly initial jobless claims data came out at the better than expected level showing only 301,000 claims for the previous week which signals the continued moderation of the U.S. unemployment rate.
Second, the leading indicators came out unexpectedly low at -0.3%, while analysts were expecting a growth of 0.1%.
Third, Philadelphia Federal Reserve manufacturing index came out at 9.2 - nearly a half of the expected 14.0.
And, at last, today’s main news maker - FOMC minutes for the June 27-28 meeting were released today. The main idea of the minutes is that while the in the first quarter of 2007 economy grew at a slightly slowed down pace, the second quarter is more promising with the good news on industrial production and employment indicators; still the main concern for the Committee remain the inflation risks, while the GDP growth is estimated to be rather high in the rest of 2007.

I’ve written about Pip Forex before, but since then it has changed a lot. Now I see it as a very easy introductory broker for the new traders that don’t want to jump into complicated trading platform, tech analysis or anything that’s beyond simple buy/sell logic. Its easy to use platform allows fast position handling which might also be useful for scalpers (Pip Forex doesn’t limit scalping). Unfortunately one can only trade 4 currency pairs with Pip Forex – EUR/USD, GBP/USD, USD/JPY and EUR/JPY. No advanced charting or limit/stop open orders. So, if you think that you are complete newbie at Forex or need some fast easy platform for some real scalping practice – Pip Forex may fit you.

Today I am introducing two new e-gold Forex brokers to you - MFN and Neuimex. Although they are both accepting e-gold e-currency for funding and cashing out, they are different brokers in many aspects. MFN offers its own trading platform and allows mini Forex accounts from $500 with a leverage up to 1:400, while Neuimex offers a platform based on Metatrader 4 with the minimum account size of $2,500 and no mini lots available. Both brokers allow CFD trading making them somewhat more attractive for stock market addicts (such as myself ;-)) that like to trade everything from a single account. And unlike Neuimex, MFN doesn’t allow U.S. citizens to open accounts (probably because of the managed accounts available).

EUR/USD calmed a little today, not reaching 1.3800 level, as the majority of traders expected some important data from U.S. statistics. Data came out mixed, but generally better for dollar than for Euro. Producer Price Index in June this year showed a slight decline (-0.2%), while consensus was at +0.1%. PPI excluding food & energy to he contrary increased by 0.3% (0.2% expected). For the stock market main surprise has been prepared by the U.S. Treasury - Net Foreign Purchases in May were $126.1 billion (against $80.3B expected). Industrial production growth for June (a very important component of GDP) came out at 0.5% and the Industrial Capacity Utilization was at 81.7% (81.4% expected). So what do we get today? Very good signs of economical growth - foreign investments and high productivity - one hand, and disappointing data on inflation on the other hand. More news to come this week, so get ready for some more surprises and try to get some pips when EUR/USD starts rolling again.

A major update was brought to Forex brokers section today. The information was enhanced and restructured in order to be more useful to the visitors and at the same time - more organized, to let the advanced traders find brokers with unique features easily. Here is list of main new features:

1. PayPal Forex brokers section added.
2. Forex brokers reviews added - read others’ reviews and write your own reviews!
3. Forex broker rating system added - rate your favorite broker or show others a broker that you dislike!
4. Information on all brokers is now neatly structured.

Hope you enjoy this update! If you find some bugs or if you have any good ideas to enhance Forex brokers information presented on this site even further, don’t hesitate to leave a comment here. And don’t forget to review and rate your Forex broker!

General trend: ranging or slightly bullish.

Today the preliminary consumers sentiment index (by University of Michigan) came out showing surprisingly good results - 92.4 against 86.0 expected - a historically high level of consumers confidence which indicates an uptrend the economy of United States. While consumer sentiment index is at its highest levels, dollar is suffering a continuous EUR/USD rally which showed a new maximum (for more than ten years period) at 1.3813 level today. Perhaps, strong macroeconomic indicators from U.S. prevented EUR/USD from keeping above 1.3800 mark, but it can be broken again at any time soon. Some other U.S. statistics became available today - business inventories growth in May increased from 0.4% to 0.5% (while a growth slowdown to 0.3% was expected). Advance monthly retail sales for June came out unexpectedly bad - falling down by 0.9% (they were expected to remain intact) - which is quite strange considering the high consumers sentiment index.