Forex Driving School - Trade of the Fortnight! - March 2010 Issue

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Trade of the Fortnight!    Simple Trades that make money

Currency Spotlight: EUR/AUD 31 Mar 2010 It's been a rough ride for the intraday traders since Chinese New Year till late March. Most of the major pairs are in range-bound; moves are non-directional and snappy. The only way to stay profitable during this season is really just not to trade. Those who traded during this season are spending 50% of their time to make back their losses, which is as good as not trading. However, there is this one pair that stands out from the rest, the eye in the storm - the EUR/AUD. EUR Even if you do not anything about fundamental analysis, just by watching Channel News Asia, you would have known that the EUR currency is in crisis with the sovereign debt issues. In the financial markets, they are calling this the "PIIGS" crisis - with Portugal, Italy, Ireland, Greece and Spain in financial trouble. AUD With the Reserve Bank of Australia raising the interest rates three times in the last three months of 2009, gave Australia its fundamental strength. Also, in the face of the global slowdown, Australia has managed to keep its economy up through its close trade ties with China whom provides a steady demand for its key commodity exports. With these two forces in play, EUR/AUD looks pretty set to bound south. In fact, it had started its journey to the South since April 2009. Let's take a look at March 2010. If you just took the short trades, you would have clocked an easy 10%. This is not counting the long trades that you could have taken in the downtrend channel. In Forex Trading, we always focus on the flow of the market. If the market is turbulent, we stay out of it. If the market is flowing smoothly, it's time to get in. It's not about the different markets that you can trade; it's about finding the right flow in the market. You can learn to identify this flow step-by-step, from technical to fundamental analysis, module-by-module. We offer Singapore's only 8-week Forex Trading Course with a structured curriculum. No over-inflated promises, no wild claims; only what works and what doesn't to protect and profit you in the Forex Market. Find out more at any of our FREE 90 min "Forex Trading Essentials" Seminar at a location near you! Click here: www.ForexDrivingSchool.com/seminar/ Important Notes: * Hypothetical profits for illustration purposes only. It assumes an effective stoploss risk of $250 for consistency in examples throughout our newsletters. This is not a trade recommendation and should only be used for educational purposes. Forex trading is a leveraged instrument and involves risks. Please seek professional advice if in doubt of its suitability for you. Any form of investment involves risk and may not be suitable for everyone. Past performance should not be an indicator of future performance. © Chart printscreens copyright www.oanda.com. Text and materials copyright FXDS Learning Group Pte. Ltd. Trade of the Fortnight is a e-publication by Forex Driving School. If you would like to receive this newsletter, please sign up here. You can unsubscribe anytime after that. Further Legal Disclaimers: We are not financial professionals in the legal terms and the information shared are purely for entertainment or educational purposes. Even financial professionals who present time to time on our stage, do not speak in their professional capacities and do not offer any advice or recommendations directly to any individual. They are merely sharing their experience. We do not advise on any product or plan or system, as every individual has a different risk appetite. We do our best to ensure accuracy but we will not be held liable for any losses incurred either directly or indirectly. If in any doubt for the suitability of any exhibited system please consult your professional financial advisor. Forex Driving School - Trade of the Fortnight - March 2010

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