FOREX Trading: Here Is Your Game Plan
All markets seem to be dominated by the action in the U.S. Dollar and the other major currencies around the globe. The foreign exchange markets (FOREX) are now the most heavily traded markets in the world and they continue to grow in popularity everyday. In this week's report we will examine three currencies besides the U.S. Dollar that can move markets at any given time.
The CurrencyShares Swedish Krona Trust (NYSEARCA:FXS) seeks to reflect the price in U.S. Dollars of the Swedish Krona. The FXS has been soaring higher since January 13, 2012 when it traded as low as $141.44 a share. Last week, the FXS traded as high as $150.07 a share which is near term resistance. Should the FXS trade above the recent high the next resistance level will be at the $153.75 area. Last Friday, the FXS pulled back closing at $148.98 a share. Should the FXS pullback further from current levels traders can find short term support around the $146.75, $144.75, and $143.50. Place these levels on your charts, trade them accordingly.
The CurrencyShares Canadian Dollar Trust (NYSEARCA:FXC) seeks to reflect the price of the Canadian Dollar. The FXC has struggled to climb above the $100.00 level. It is important to note that the FXC is still trading below its October 27, 2011 pivot high of $100.52 a share. This ETF will often reflect the action in many of the base metals as Canada is a commodity rich nation. Should the FXC trade higher there will be near term resistance around the $101.00, and $103.50 levels. If the FXC pulls back from its current level traders should watch for near term support around the $98.00, and $97.00 levels.
The CurrencyShares Australian Dollar Trust (NYSEARCA:FXA) is another ETF that will often follow the trend of the base metals. The Australian economy is very much like the Canadian economy in that respect. Last week, this important ETF closed at $106.71 a share. Traders can watch for near term support around the $105.50, $104.00, and $102.50 levels. Should the FXA rally from current levels trader must watch for resistance around the $110.00 and $114.00 levels. Take careful note of these levels, understand what moves the currencies and profit from the relationship.