During the 24 hours period currency pairs in Forex market experience several hours, when the volume of trades is the highest and so is the pip movement.

Below are Forex market sessions and examples of the most active currency pairs:

London/ New York sessions:

EUR/USD
USD/CHF
GBP/USD

Tokyo/Sydney sessions:

EUR/JPY
AUD/USD
USD/JPY
AUD/JPY

Sydney session:

AUD/USD
EUR/USD

During the week the most active Forex trading days are: Tuesday, Wednesday and Thursday. Sundays (opening) and Mondays are days when traders are mostly watching and analyzing the market and predict further price moves. Fridays are traded approximately till noon, after that all actions slow down and almost freeze before the actual market closing at 5 pm EST.

SINGAPORE (Dow Jones)–The following is a technical analysis of seven major currency pairs for this week:

USD/JPY

1st support – 91.92 (minor)

1st resistance – 93.40 (minor)

2nd support – 91.72 (moderate)

2nd resistance – 94.16 (minor)

USD/JPY (last 93.00) is likely to trade with risks skewed higher this week after the pair on Friday broke above the downtrend resistance line from the Aug. 10 high of 97.72, coming in now at 92.46, while the slow stochastic measure has turned bullish at the oversold level. Resistance is at 93.40, the previous base set on Aug. 21; a breach would expose the upside to 94.16, the 38.2% Fibonacci correction of the decline from the Aug. 7 high of 97.78 to Thursday’s low at 91.92, and then to the 200-day moving average, coming in now at 94.76 and not far below the 50% correction level at 94.85. An extension of the rise would target the Aug. 24 reaction high of 95.06 and the Aug. 18 reaction high of 95.28. Support is at 91.92, and then at the July 13 trough of 91.72; a breach would expose downside to the Feb. 11 reaction low of 89.68. USD/JPY is likely to stay rangebound between 91.72 and the April 6 high of 101.45 in the medium term. But a fall below 91.72 would expose the downside to the Dec. 17, 2008 and Jan. 21, 2009 lows of 87.11.

EUR/USD

1st support – 1.4175 (minor)

1st resistance – 1.4348 (minor)

2nd support – 1.4044 (moderate)

2nd resistance – 1.4404 (minor)

EUR/USD (last 1.4322) is likely to stay rangebound this week. The daily chart is mixed as the stochastic measure is bullish, but the MACD indicator is in bearish mode, while the five- and 15-day moving averages are meandering sideways. Resistance is at Thursday’s high of 1.4348; a breach would target the Aug. 27 reaction high of 1.4404 and the Aug. 5 reaction high of 1.4446. A rise above the latter level would expose the upside to 1.4719, the Dec. 18 top. Support is at Tuesday’s reaction low of 1.4175, which is near the 55-day moving average; a breach would expose the downside to the Aug. 17 reaction low of 1.4044, and then to the July 30 reaction low of 1.4005. EUR/USD medium-term outlook remains consolidative as long as the pair stays below 1.4446. A sustained rise above 1.4446 would reinstate the positive medium-term bias, paving the way to 1.4719, and then to the Sept. 22, 2008 reaction high of 1.4865 in coming weeks.

AUD/USD

1st support – 0.8477 (minor)

1st resistance – 0.8587 (minor)

2nd support – 0.8386 (minor)

2nd resistance – 0.8813 (moderate)

AUD/USD (last 0.8515) is likely to consolidate with a bullish bias this week after hitting a one-year high of 0.8537 this morning. The daily stochastic measure is bullish, and the MACD line is staging a bullish crossover against its exponential moving average. Resistance lies on the uptrend line from the June 3 high of 0.8263, coming in now at 0.8587; a breach would expose the upside to the Aug. 21, 2008 reaction high of 0.8813. Support is at 0.8477, the previous cap set on Aug. 14; a breach would expose the downside to Friday’s low of 0.8386, and then to Wednesday’s reaction low at 0.8237. AUD/USD medium-term outlook is positive as the five- and 15-week moving averages are rising, and the weekly MACD and stochastic indicators are bullish, although the latter is at the overbought level. Friday’s breach of the resistance at the Sept. 22, 2008 reaction high of 0.8519 has paved the way for the spot rate to advance to 0.8942, the 76.4% Fibonacci retracement level of the decline from the July 15, 2008 high of 0.9849 to the Oct. 27, 2008 low of 0.6004, in coming weeks.

NZD/USD

1st support – 0.6682 (minor)

1st resistance – 0.6898 (moderate)

2nd support – 0.6639 (minor)

2nd resistance – 0.6951 (strong)

NZD/USD (last 0.6885) is likely to consolidate with risks skewed higher this week. The slow stochastic measure is in bullish mode, and a bullish parabolic stop-and-reverse signal was hit at 0.6879 on Friday. Resistance is at the Aug. 25 high of 0.6898; a breach would target the Sept. 22, 2008 reaction high of 0.6951. Support is at Wednesday’s reaction low of 0.6682; a breach would turn the near-term bias negative, exposing the downside to the Aug. 17 reaction low of 0.6639, and then to the Aug. 12 reaction low of 0.6594, which is currently near the 55-day moving average. NZD/USD medium-term outlook is positive as the five- and 15-week moving averages are rising, and the weekly MACD and stochastic indicators are bullish, although the latter is at the overbought level. A rise above the Sept. 22, 2008 reaction high of 0.6951, which roughly coincides with the 61.8% Fibonacci retracement of the decline from the March 14, 2008 high of 0.8213 to the March 4, 2009 low of 0.4890, would expose the upside to the Aug. 21, 2008 reaction high of 0.7216, and then to 0.7429, the 76.4% retracement level, in coming weeks.

GBP/USD

1st support – 1.6285 (minor)

1st resistance – 1.6440 (minor)

2nd support – 1.6110 (minor)

2nd resistance – 1.6622 (minor)

GBP/USD (last 1.6400) is likely to consolidate with risks skewed higher this week. The spot rate on Wednesday broke above the downtrend resistance line from the Aug. 6 high of 1.7029, and the slow stochastic measure is rising from the oversold level, while the MACD line looks poised to stage a bullish crossover against its exponential moving average. Resistance lies on the 55-day moving average, coming in now at 1.6440; a breach would expose the upside to 1.6622, the Aug. 21 reaction high, and then to the Aug. 13 reaction high of 1.6664. An extension of the rise would target the Aug. 5 top at 1.7042. Support is at Friday’s low of 1.6285; a breach would expose the downside to Tuesday’s reaction low of 1.6110, and then to the 100-day moving average, coming in now at 1.6076. An extension of the fall would target the July 8 reaction low of 1.5982, and the June 8 reaction low of 1.5799. GBP/USD positive medium-term outlook is under threat as the five-week moving average’s rise has stalled, and the weekly stochastic is now falling from the overbought level. The currency pair may consolidate between 1.5799 and 1.7042 over the next few weeks.

USD/CHF

1st support – 1.0523 (minor)

1st resistance – 1.0714 (minor)

2nd support – 1.0367 (strong)

2nd resistance – 1.0734 (minor)

USD/CHF (last 1.0596) is likely to continue consolidating this week as long as the pair stays above the Aug. 27 low of 1.0523. The daily slow stochastic measure is bearish, but the MACD indicator is neutral, while the five- and 15-day moving averages are meandering sideways. A fall below 1.0523 would reinstate the near-term negative bias, exposing the downside to 1.0367, the Dec. 29, 2008 trough. Resistance is at the Aug. 26 high of 1.0714; a breach would turn the near-term bias bullish, targeting the 55-day moving average, coming in now at 1.0734, and then the Aug. 17 reaction high of 1.0833. An extension of the rise would target the 100-day moving average, coming in now at 1.0872 and not far below the Aug. 10 reaction high of 1.0883. USD/CHF medium-term outlook is negative as the weekly MACD indicator is bearish, and the five- and 15-week moving averages are falling, while the weekly stochastic measure stays suppressed at the oversold level. The currency pair may target 1.0367, and then the July 15, 2008 reaction low of 1.0009, which is just above the psychological 1.0000 level, in coming weeks. An extension of the fall would target the record low of 0.9572 hit on March 17, 2008.

USD/CAD

1st support – 1.0717 (minor)

1st resistance – 1.1124 (minor)

2nd support – 1.0630 (moderate)

2nd resistance – 1.1177 (minor)

USD/CAD (last 1.0852) is likely to continue trading sideways this week between the Aug. 25 reaction low of 1.0717 and the Aug. 17 reaction high of 1.1124. The daily chart is mixed as the stochastic measure is bearish, but the MACD indicator is still in bullish mode, while the five- and 15 day moving averages are meandering sideways. A rise above 1.1124 would target 1.1177, the 50% Fibonacci correction of the decline from the July 8 high of 1.1724 to the Aug. 4 low of 1.0630. An extension of the rise would target the 100-day moving average, coming in now at 1.1284, and the 61.8% correction level at 1.1306. But a fall below 1.0717 would target the Aug. 4 reaction low of 1.0630. USD/CAD is likely to consolidate over the next few weeks as long as the pair stays above 1.0630. The weekly MACD indicator is bearish, but the weekly stochastic measure is bullish near the oversold level. A sustained drop below the 1.0630 support would suggest a resumption of the negative medium-term trend, targeting the Sept. 25, 2008 reaction low of 1.0296, and then the July 15, 2008 reaction low of 0.9972 in coming weeks.

Latest     Previous   %Chg   Daily   Daily    %Chg
Dollar Rates                        2150 GMT          High    Low      12/31

USD/JPY Yen              92.83-84   93.28-29   -0.48  93.56   92.55    +2.46
EUR/USD Euro             1.4339-41  1.4304-11  +0.24  1.4366  1.4257   +2.58
GBP/USD Sterling         1.6276-79  1.6263-67  +0.08  1.6300  1.6184  +11.28
USD/CHF Swiss Franc      1.0573-76  1.0593-00  -0.19  1.0635  1.0557   -0.90
USD/CAD Canadian Dlr     1.1006-12  1.0915-20  +0.83  1.1092  1.0905   -9.53
AUD/USD Australian Dlr   0.8420-25  0.8419-22  +0.01  0.8443  0.8339  +19.04
NZD/USD New Zealand Dlr  0.6841-45  0.6837-47  +0.06  0.6864  0.6793  +17.24

Euro Rates

EUR/JPY Yen              133.11-16  133.49-53  -0.28  133.84  132.16   +5.11
EUR/GBP Sterling         0.8809-12  0.8794-99  +0.17  0.8826  0.8778   -7.87
EUR/CHF Swiss Franc      1.5163-66  1.5158-63  +0.03  1.5177  1.5145   +1.55
EUR/CAD Canadian Dlr     1.5784-92  1.5613-28  +1.10  1.5849  1.5593   -7.25
EUR/AUD Australian Dlr   1.7021-29  1.6984-98  +0.22  1.7121  1.6943  -13.87
EUR/DKK Danish Krone     7.4435-36  7.4428-35  +0.01  7.4438  7.4422   +0.01
EUR/NOK Norwegian Krone  8.6218-73  8.6039-95  +0.21  8.6407  8.5842  -11.20
EUR/SEK Swedish Krona    10.2061-61 10.1501-22 +0.55  10.2276 10.1551  -6.59
EUR/CZK Czech Koruna     25.4350-50 25.3960-60 +0.15  25.4610 25.3370  -4.93
EUR/HUF Hungary Forint   271.98-23  270.88-27  +0.41  272.90  271.00   +3.20
EUR/PLN Polish Zloty     4.0955-75  4.0898-38  +0.14  4.1089  4.0893   -0.47

Yen Rates

AUD/JPY Australian Dlr   78.17-21   78.53-58   -0.46  78.83   77.55   +23.49
GBP/JPY Sterling         151.08-16  152.22-33  -0.75  152.14  150.08  +14.20
CAD/JPY Canadian Dlr     84.27-42   85.79-94   -1.77  85.66   83.81   +13.59
NZD/JPY New Zealand Dlr  63.50-55   63.80-90   -0.47  64.00   63.09   +21.53

Other Dollar Rates

USD/CZK Czech Koruna     17.736-51  17.753-83  -0.10  17.841  17.669   -7.21
USD/HUF Hungary Forint   189.65-83  189.09-44  +0.30  191.00  189.45   +0.72
USD/DKK Danish Krone     5.1899-09  5.2012-32  -0.22  5.2204  5.1815   -2.51
USD/NOK Norwegian Krone  6.0118-68  6.0150-30  -0.05  6.0594  6.0017  -13.44
USD/PLZ Polish Zloty     2.8558-81  2.8415-25  +0.50  2.8780  2.8505   -3.55
USD/RUB Russian Ruble    31.795-05  31.630-35  +0.52  31.892  31.600   +4.16
USD/SEK Swedish Krona    7.1181-26  7.0960-10  +0.31  7.1661  7.0858   -8.86
USD/EEK Estonia Kroon    10.9105-13 10.9332-85 -0.21  10.9747 10.8905  -2.44

USD/HKD Hong Kong Dlr    7.7506-08  7.7506-13   0.00  7.7511  7.7506   +0.01
USD/MYR Malaysian Ringt  3.5200-30  3.5200-30   0.00  Untraded today   +2.03
USD/INR Indian Rupee     48.7500-00 48.5200-00 +0.47  48.9300 48.3500  +0.35
USD/IDR Indones Rupiah   10075-085  10045-055  +0.30  10085   10055    -7.14
USD/PHP Philippine Peso  48.780-20  48.750-00  +0.06  48.780  48.800   +2.87
USD/SGD Singapore Dlr    1.4412-21  1.4416-28  -0.03  1.4438  1.4395   +0.76
USD/KRW S. Korean Won    1248.0-1.0 1244.8-9.6 +0.26  1250.2  1247.0   -1.11
USD/TWD Taiwan Dlr       32.910-40  32.880-10  +0.09  32.950  32.850   +0.47
USD/THB Thai Baht        34.01-03   34.00-03   +0.03  34.13   34.00    -2.02
USD/VND Vietnamese Dong  17815-23   17810-21   +0.03                   +1.92
USD/ZAR S. African Rand  7.7800-00  7.7710-10  +0.12  7.8251  7.7620  -17.58

USD/BRR Brazilian Real   1.873-74   1.880-82   -0.37  1.904   1.868   -19.02
USD/MXN Mexican Peso     13.342-44  13.219-61  +0.93  13.345  13.245   -2.27
USD/ARS Argentine Peso   3.8525-75  3.8475-25  +0.13                  +11.67

Source: Thomson Reuters

August 31, 2009 11:50 ET (15:50 GMT)

It has been quite awhile since I have last updated as my day job has been keeping me busy.

Since my last update, I have been focusing on some of the most basic economic indicators.  These indicators provides some insights as to how well the economy is doing right now.  While trading for forex is done over that 5 minutes interval, it is still important to keep an eye on the current economic situation.  One of the most commonly watched indicators are the interest rates by the Central Banks.  It is worth taking the time out to find out more on the interest rates in US, UK and even China.  Information about the prevailing interest rates as well as the possibiblity of an increase/decrease in interest rates are extremely useful in forex trading.  The movement of the currencies traded on forex are largely influenced by the interest rates.  Any signs of interest rates changes can move the forex market.  Do take the time out to find out more about policies by Central Banks and how it affects interest rates.

While I’m still learning, I’ll share more about interest rates and other ecomonic factors, as well as how it affects currency movement in forex, in a later blog posting.

I have current purchased 2 books to read up more on fundamentals of trading forex online.  The 2 books that I currently own are “The Complete Guide to Currency Trading & Investing” (ISBN-13: 978-1601381194) and “Currency Trading For Dummies” (ISBN-13: 978-0470127636).

Currency Trading for Dummies

These two books provides very concise information and should be good for getting a quick start on forex.  So far, I have already completed “Currency Trading For Dummies” and I’m onto the 2nd book.  If you only have time for 1 book, I’ll suggest starting with “Currency Trading For Dummies”.  You can purchase them either off Amazon.com or Barnesandnoble.com. You might be able to pick up a copy off eBay as well.  I’ll be updating what I have learn as soon as I have digested all the information.

Here’s what I have gathered so far about forex trading on Day 1.  I am by no means an expert in forex trading, if you need more information just check out some of the links on my page.  This blog serves as a place for me to gather my thoughts as well as a record on how well I’m doing so far.  By this, I mean how much money I am making from forex.  I know a lot of you are as much of a skeptic as I am, so this will be where I’ll tally up the scores and see if I’m breaking even at all.

Forex trading, in case you didn’t know, is the foreign currency exchange market.  One of the largest and most traded financial market in the world.  This is the trader’s ultimate dream market – open 24 hours a day, 6 days a week.  This is where half a billion dollars of trade are being executed very few seconds.   On an average day, the daily currency volumes exceeds $2,000,000,000,000.  There’s no typo here.  The trading volume is indeed $2 trillion dollars each day.  I hope you’re sitting up and listening by now.

Trading opens on Monday in Asia Pacific and closes on Friday in New York, at the end of the business day.  That will give you about 144 hours of trading time in a week.  That’s the reason why I have decided to get started in Forex.  You do not need a lot of money to get started in Forex.  A quick search on Google will turn up a lot of online Forex trading sites.  Take you time to do some research.  And if you wish, you may drop by my blog and see what I have learnt.

That’s all for today, I’ll be reading up more on forex and I suggest you do the same too.by-Step