Stocks & Commodities V. 24:7 (16-20): Forex Focus: Major FX: Dollar, Euro, Pound by Shyam G. Devani
Access to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS & COMMODITIES has introduced Forex Focus to better prepare the retail trader to participate in the currency market.
What do Fibonacci levels and currencies have in common? More than you would think. Take a look.
Since reporting on the euro/US dollar (EUR/USD) and the British pound/US dollar (GBP/USD) in December 2005 I have maintained they are in long-term downtrends, and the recent market movements of the past six months have been, and may continue to be in the short term, in a corrective phase. Further, the dollar reached the depths of its depreciation against the euro and sterling throughout the 2000–04 period. I also
contended that the new peak in these markets would occur when least expected — when the press and media would headline the drop of the dollar again and refer back to the US current account deficit arguments — as occurred in December 2004. Key price targets were given as potential turning points, and it is unsurprising that the media has once again picked up on the current account argument when the British/
pound/US dollar (GBP/USD) has hit 61.8% and the euro/US dollar (EUR/USD) has hit the 50% retracement levels over the last 10 days.