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  1. #1
    Specialist Member TAllen1429's Avatar

    Daily Trading Tips by Terry - Thursday 11th July !!!

    Recommendations:

    Use an expiry time of 1 hour plus.
    Risk no more than 2% of your account balance.
    Tips are tradable until 4.00pm EST today.
    Trade just one Tip at a time


    EUR/USD: The euro acquired solid support overnight after Bernanke’s dovish tone caused the US Dollar to weaken severely. Prolonged quantitative easing will hurt the greenback as it exposes it to a constant threat of devaluation.

    After the EUR/USD surged higher during the night, it has undergone a corrective dip in the last few hours. As the US Dollar is now expected to weaken further during today, activate a CALL binary option using this pair as its underlying asset following a clean break above 1.3130.


    USD/JPY: With the US Dollar weakening substantially against a basketful of major currencies following Bernanke’s dovish comments yesterday, this pair crashed by over 200 pips overnight.

    The USD/JPY plunged to challenge its lower Bollinger Band before undergoing a minor corrective rally this morning. With further US Dollar weakness now in the pipeline, sell this pair if price plummets beneath 98.80.


    GOLD TRADING: This precious metal rocketed in price when the commodity markets reopened this morning by instantly surging by over $34 per oz. Gold was definitely one of the main beneficiaries of the Fed’s new dovish stance.

    After being mildly rebuffed by its upper Bollinger Bank in the last few hours, bullion now appears poised to strengthen further. Open a new CALL binary option based on gold if price can achieve a sustained break above $1,296.20 per oz.


    GBP/USD: Bernanke comments caused the US Dollar to weaken substantially during the night by exposing the greenback to the draining threat of constant devaluation. Consequently, this pair surged higher by nearly 300 pips to break above a major resistance level.

    However, the GBPUSD was not able to sustain such lofty heights and has been retracted in the last few hours. After rebounding against its middle Bollinger band, the pair now looks set to climb higher. Buy the GBP/USD on a clean break above 1.5150.

  2. #2
    Legendry Member Michael Hodges's Avatar
    Beware Bernanke, the statments he put out yesterday are not jibing with the minutes. Half of the FOMC decision makers are in favor of ending QE this year, as soon as July for some of them. Bernanke stating that they are in "no hurry" does not make sense. Sure they are waiting for clearer signs but even he himself has said that he sees tapering beginning by the end of the year and ending by mid 2014. NOt in a hurry may simply mean that tapering will begin later this year versus sooner this year.

  3. #3
    Specialist Member TAllen1429's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Beware Bernanke, the statments he put out yesterday are not jibing with the minutes. Half of the FOMC decision makers are in favor of ending QE this year, as soon as July for some of them. Bernanke stating that they are in "no hurry" does not make sense. Sure they are waiting for clearer signs but even he himself has said that he sees tapering beginning by the end of the year and ending by mid 2014. NOt in a hurry may simply mean that tapering will begin later this year versus sooner this year.
    Yes, the Fed does not seem to be a harmonious bunch. wrote this summary this morning:

    The influential minutes from the latest meeting of the Federal Open Market Committee (FOMC) were also published yesterday disclosing that half of its voting members were in favor of tapering the Fed’s monthly asset purchasing program towards the end of this year. However, Bernanke rejected this notion later in a press conference by emphatically advising that such moves would be premature.

    His dovish remarks were enough to fuel fresh investor confidence which propelled the world’s stock markets higher during the night. In contrast, the US Dollar was hit hard by the Bernanke announcement exemplified by the EUR/USD rocketing by over 250 pips and the USD/JPY collapsing by 210 pips. Analysts summarized the current situation by advising that equities were currently basking in ideal trading conditions. This is because the US economy is improving but not at a rate that warrants swift Fed action.

  4. #4
    Specialist Member TAllen1429's Avatar
    Still, it is quite hard to over-criticize the Fed Chairman because as Jim Cramer of CNBC said this morning:

    'There is only one working economy in the world today and this is the Bernanke one. Every other one is going nowhere.'

  5. #5
    Legendry Member milos's Avatar
    US stock ended in the US trading session rather mixed,however,but, during the Asian trading session led to a rapid growth as a result of statements Ben Bernanke's to the US economy in the future will need financial incentives.US stocks continued moderate growth after the speech of Ben Bernanke's downplayed concerns about the recent completion of monetary easing.Global stock markets rose fueled optimism that tax monetary policy of the Federal Reserve continue to stimulate economic growth.

  6. #6
    Active Member pipshunter's Avatar
    Quote Originally Posted by TAllen1429 View Post
    Still, it is quite hard to over-criticize the Fed Chairman because as Jim Cramer of CNBC said this morning:

    'There is only one working economy in the world today and this is the Bernanke one. Every other one is going nowhere.'
    Really a good statement haha , but is it really right? Is the US economy the only working economy in the world? What about China or Germany? The problem with the US economy is that it is working on a bunch of debt and the better it is working the more debt appear and it will continue to work that way only till there will be foreign investors to buy this debt, but as you know from many small countries like Greece or Cyprus if the situation become too bad there are no debt buyers at all and the only way is to write off part of the debt and to force economic restructuring the hard way. Is it possible that to happen to US too? I am not sure but it is not totally imposible.

  7. #7
    Specialist Member TAllen1429's Avatar
    Quote Originally Posted by pipshunter View Post
    Really a good statement haha , but is it really right? Is the US economy the only working economy in the world? What about China or Germany? The problem with the US economy is that it is working on a bunch of debt and the better it is working the more debt appear and it will continue to work that way only till there will be foreign investors to buy this debt, but as you know from many small countries like Greece or Cyprus if the situation become too bad there are no debt buyers at all and the only way is to write off part of the debt and to force economic restructuring the hard way. Is it possible that to happen to US too? I am not sure but it is not totally imposible.
    Your analysis has much going for it. There must be smoke coming out of the Fed's US dollar printing machines.

    I just quoted Jim Cramer's comments as I thought they was quite thought provoking. He also added that people should stop whining and start focusing more on making money from all the cheap cash Bernanke is providing. So I suppose I had better shut up and get to it

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