BEST-FX-4U

Dollar goes up against Euro and pound but falls against Yen

Dollar puts in its best performance in more than three and a half years, as U.S dollar rose today against the Euro and Great Britain pound . The reason was the speculation that financial crisis in Euro zone will lead to long term U.S financial assets. The Euro fells below $1.43 first time since early September.

The overall improvement in the U.S economy has helped the dollar to grow in recent days. The U.S Federal Reserve has decided to cut down emergency lending and hopes for the U.S recovery. All these reasons helped the investors buying back the dollar and gaining the profit on core trades.

On the other hand there is concern for U.S as U.S currency dropped against the Japanese currency Yen due to unreliable assumption and reports on recovery of U.S economy .The Dollar drops down to 92.75 Yen in Tokyo from 93.21 in New York.
Nikkei newspaper report supported the Yen that the bank of Japan will think on revising its consumer prices forecast for the year from April 2011 from an annual drop of 0.2 percent to zero. Investors are buying Yen at the cheap rate causing the trouble for U.S dollar.

Some of the investors believe that the real reason for the rise of U.S dollar is not that dollar is strong but euro and sterling suddenly look more fragile than the greenback. The euro zone is going through recession and it will take hard to come out of it. Apart from it U.S is trying to improve its economic condition and putting their best efforts in making USD the best performing currency. But the current situation is not in favor of USD as it falls down today against EURO and this benefits the EURO. Since from past 24 hours the EURO is the best performing currency of the Forex online market. This is the good news for the investors whose sentiments are still with the EURO currency and hoping for the best of EURO.

Criteria read-through before going long or short

The most difficult decisions that every traders need to go through is the decision of going long or short at the forex trading platform. There are various criteria set for the traders to correlates the trade position and the flow of the market by cross analysis and setting up of the check points for evaluating the trading mechanism followed by the traders.

The points to be checked for evaluating the authenticity of the trade moves includes following:

• Picking up the exact trading time frame and cross considering the time frame you have chosen while transacting your deal of buying and selling at the trading board, forex charts can also help traders in this evaluation.

• Consideration of daily, weekly and monthly time frames to acknowledge the details of the trading market along with checking the most common direction in which trades are scrolling in the last few forex sessions.

• Checking for the long-term, short-term and intermediate trends around which all the major and commodity currencies are revolving. Analyzing the price trends at the up trend, sideways termed as consolidating trends or the down trend.

• At forex online trends consists of following things that need to be evaluated like trend indicator, trend line or channel and the trend structure.

These are the tools to evaluate the forex flows and the effect of currencies trading on the market in order to get the better outcomes from the positions that are placed by the traders at the trading platform.

These criteria are responsible for the changes in the price actions of the currencies involved at the market to get into the depth of the buying and selling of decisions to avoid any kind of misunderstanding pertaining to the deals and their transactions.