FX Primus Ltd.

FX Primus Ltd.

June 03, 2013 07:19 ET

Your Top Forex Questions for May, Answered by FXPRIMUS

Retail Forex Brokerage looks at the USD against other major currencies, going into June

SINGAPORE, SINGAPORE--(Marketwired - June 3, 2013) - Going into June 2013 after a rebound in the USD as a safe haven currency, Mario Sant Singh, Director of Trading & Education at FXPRIMUS - whose views are widely sought after in the Forex industry, looks at the GBPUSD, shorting the Euro, and at ways of predicting market range movement - amongst other topics, in his AskMarioSingh.com blog, "Your toughest Forex Questions answered daily."

Said Mario, "UK economic figures do not bode well for the GBP and I expect the Pound to experience continued selling pressure. Technically, the Weekly GBPUSD chart shows that the price made a recent low of around 1.4900 this past March. If it breaks this low, the next significant support will be at 1.4400."

On the Euro, Mario said "The Euro Zone is fundamentally weak, and it looks like it might get worse for the second half of this year. Overall, I see further weakness for the EUR for the rest of this year. Technically, the next key support is around 1.2700. If price breaks below this support, we might see a free-fall towards the 1.2100 level."

According to Mario, the USD is enjoying a resurgence in demand as a safe haven relative to other major currencies. "Overall, I expect the USD to continue strengthening against the JPY, as well as risk currencies EUR and AUD, until the end of May." said Mario.

On the question of detecting if the market will move into a range, Mario said that there are a few simple ways to tell in advance whether a market will move into a range, but they are not guaranteed. "One way is check if the price starts respecting the previous high or low (basically resistance or support), which might suggest that it is unable to trade with its previous momentum and may start going into a range," said Mario.

"Another way is using 'at least' moving averages," he said. "I use Exponential Moving Average (EMA) with period 12 (EMA12) and 36 (EMA36). If moving averages start closing towards each other, it might suggest that price momentum weakened and may go into a range," he explained.

"You can also use Bollinger Bands," he said. "If the Bands start to narrow, it might suggest that price momentum weakened and may go into a range."

"Take note that there are no guarantees in trading," added Mario. "A market that respects a resistance level does not mean it cannot break the level and continue with its previous trending momentum. Thus, the key is being consistent with your trading methods and trading according to your trading plan."

During May, the top ten Forex trading questions (click the links for the answers) were:

1. Question from Lim: What is your point of view on the GBPUSD?

2. Question from Lee: Has the Bank of Japan (BoJ) weakened the Yen enough?

3. Question from Adnan: Is it time to Short the Euro?

4. Question from Geena: Do you expect the USD to rally until the end of May?

5. Question from Subra: How do actual vs. forecast figures in news releases affect a currency?

6. Question from Timmy: How can I be a better trader and take responsibility for my trades?

7. Question from Boyd: Do market maker brokers exist? How do they influence Forex trading?

8. Question from Rajesh: Is six months enough time to learn and practice Forex?

9. Question from Jenn: What are some misconceptions about Forex trading?

10. Question from Wiyono: How can you detect if the market will move into a range?

Mario's popular blog, his weekly market webinar, his daily and weekly market reports and his ASEAN market review provide some of the best-informed directly-accessible educational resources that new and experienced traders can utilise to improve their knowledge of Forex and related investment markets.

Have a new question for Mario? Then ask him online at AskMarioSingh.com, and sign up to receive Mario's Forex Answer of the Day, by email.

ABOUT FXPRIMUS

FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools and personal coaching via FXPRIMUS Coach FXPRIMUS truly is The Safest Place To Trade.

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