FOREX TRADERS

[ultimatepick]

Forex Training: Seasonal Currency Cycles
http://forex.gftforex.com/
December 22, 2006

The U.S. dollar has one coming up
Many currencies lose and gain in seasonal cycles. While not full-proof (Japan's traditional August boost was denied this year), it can help your forex trading success to understand the seasonals. The U.S. dollar, for example, typically does better in January than in December. Here is what India's Economic Times points out about the greenback in currency trading:
The so-called “January effect” is conventional wisdom on Wall Street. Investors believe the dollar tends to weaken in December as corporate investors close out currency hedges and foreign investors repatriate cash, but then it frequently strengthens in January as new hedges are established and foreign flows into US markets begin afresh.
Against a basket of major currencies over the past 30 years the dollar’s January performance has been better than December’s in all but nine years, and in 12 of those years a December fall has been followed by a January gain. This year though investors may have anticipated the “January effect”.
“Someone said to me ‘when shall we buy the dollar?’ and I said: ‘Right before you go to the New Year’s party,’” said Marc Chandler, chief global strategist at Brown Brothers Harriman in New York. “What is happening is people know about the January effect in the stock market, so maybe people start putting on their positions in December,” he said.
But, as you can see, the convential wisdom regarding the U.S. dollar and forex trading in January may lead to a bit of a shake-up this time around. In any case, knowing what others expect of the FX market can help you make better forex trading decisions.

The EUR/USD may go down to 1.3000 but then I beleive will shoot up. No more day trading for me ... impossible with my work schedule. I am now a swing trader .... not by choice though.
See the trend on the weekly/daily chart and go with it. Be prepared to have a 200+ pips stop though LOL!

Good luck all!
Have fun!

PS: I am liking GFT Forex more and more ....
Ultimatepick