Newsletter 24/10/2007

ASIAN SESSION

A) CALENDAR

-23/10/2007
-GMT 23:50 JPN Trade balance (Yen), (Sep) EST 1470.0B PREVIOUS 743.2B
-GMT 23:50 JPN Adjusted Trade Balance (Yen), (Sep) EST 916.3B PREVIOUS 1144.9B
Definition
Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. They form part of the balance of payments, which also includes other transactions such as international investment. The figures are usually split into visible and invisible balance figures. The visible balance represents the physical goods, and invisible represents other forms of trade, e.g. the service economy.
A positive balance of trade is known as a trade surplus and consists of exporting more (in financial capital terms) than one imports. A negative balance of trade is known as a trade deficit and consists of importing more than one exports. Neither is necessarily dangerous in modern economies, although large trade surpluses or trade deficits may sometimes be a sign of other economic problems.
If the balance of trade is positive, then the economy has received more money than it has spent. This may appear to be a good thing but may not always be so.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4315 115.50 2.0580
R2 1.4300 115.15 2.0540
R1 1.4280 115.00 2.0515
S1 1.4235 114.65 2.0490
S2 1.4215 114.25 2.0445
S3 1.4195 114.10 2.0410

C) WATCH
-Interest Rates

  • (23/10/2007) GMT 23:50 JPN Trade balance

D) TRADING TIPS
Besides the 50% retracement, there are minimum and maximum percentage parameters that are also widely recognized � the one-third and the two-thirds retracements. In other words, the price trend can be divided into thirds. Usually, a minimum retracement is about 33% and a maximum about 66%. What this means is that in a correction of a strong trend, the market usually retraces at least a third of the previous move. This is very useful information for a number of
reasons. If a trader is looking for buying area under the market, he or she can just compute a 33-50% zone on the chart and use that price zone as a general frame of reference for buying opprtunities.

EUROPEAN SESSION

A) CALENDAR

-GMT 07:00 EU ECB’s Gonzalez-Paramo, Spain’s Vegara Speak at Conference

-GMT 08:00 EU Current account (Aug) EST 2.0B PREVIOUS 1.7B
Definition
Balance of trade plus NET investment income & transfers. The difference between what the country earns and spends overseas. The �current account� more specifically deals with the daily recurring transactions in the ordinary course of business. It involves international receipts & payments including trading receipts & payments, service receipts & payments and unilateral transfers such as payment of royalties, repatriation of after-tax profits & dividends, remittance of after-tax wages & other income by foreign employees and any payment of interest on foreign debts.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4315 115.00 2.0580
R2 1.4300 114.65 2.0540
R1 1.4280 114.50 2.0515
S1 1.4235 114.25 2.0470
S2 1.4220 114.10 2.0445
S3 1.4195 113.80 2.0410

C) WATCH
-Interest Rates
-GMT 08:00 EU Current account

D) TRADING TIPS
Besides the 50% retracement, there are minimum and maximum percentage parameters that are also widely recognized � the one-third and the two-thirds retracements. In other words, the price trend can be divided into thirds. Usually, a minimum retracement is about 33% and a maximum about 66%. What this means is that in a correction of a strong trend, the market usually retraces at least a third of the previous move. This is very useful information for a number of
reasons. If a trader is looking for buying area under the market, he or she can just compute a 33-50% zone on the chart and use that price zone as a general frame of reference for buying opprtunities.

US SESSION

A) CALENDAR

-GMT 14:00 USA Existing Homes (Sep) EST 5.25M PREVIOUS 5.50M
-GMT 14:00 USA Existing Homes (m/m),(Sep) EST -4.5% PREVIOUS -4.3%
Definition
Existing Home Sales is a measure of the selling rate of pre-owned single-family homes, collected by the National Association of Realtors from 650 realtor associations.

-GMT 20:00 NZD RBNZ Rate Decision EST 8.25% PREVIOUS 8.25%

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4300 115.10 2.0580
R2 1.4280 114.95 2.0540
R1 1.4265 114.65 2.0515
S1 1.4185 114.20 2.0445
S2 1.4160 114.00 2.0420
S3 1.4145 113.80 2.0370

C) WATCH
-Interest Rates
-GMT 14:00 USA Existing Homes
-GMT 20:00 NZD RBNZ Rate Decision

D) TRADING TIPS
Besides the 50% retracement, there are minimum and maximum percentage parameters that are also widely recognized � the one-third and the two-thirds retracements. In other words, the price trend can be divided into thirds. Usually, a minimum retracement is about 33% and a maximum about 66%. What this means is that in a correction of a strong trend, the market usually retraces at least a third of the previous move. This is very useful information for a number of
reasons. If a trader is looking for buying area under the market, he or she can just compute a 33-50% zone on the chart and use that price zone as a general frame of reference for buying opprtunities.