Automatic Forex Trading Automatic forex trading has been unpredictable recently because of Greece's debt crisis. Many fear that this crisis in Greece is going to spread to other EU countries that are deep in debt such as Portugal, Italy, and Spain. Because of what has occurred , there has been 11% drop in Euro currency against the US Dollar. When looking at this situation we need to ask ourselves the following questions : Is the end of the Euro sell off here and is the strength in the US Dollar because of the United States strong fundamentals or the Euro's weakness? These questions are very important because the second question's answer will have an impact on the answer to the first question. I believe that there is a benefit to the US dollar currently only because of the weakness of the Euro . Consumer spending in the US economy has picked up steam only because of the Federal Reserve has left rates at near 0% for quite some time now . What will occur when the Fed has to raise these rates? Will the economy in the US be able to deal with this ? The answer is likely no . Also, it is important to keep in mind that consumers are spending more right now because they are not paying credit card payments, automobile payments, mortgage payments, and more . This leaves the consumer with extra income that they otherwise would not have and so they can spend more money on things like eating out, shopping for clothes, and buying Apples new i-pad . Again consumers are going at it like crazy. The last Federal Reserve boom that was inflated was not sustainable and it will not be sustainable this time . The only options for the US Dollar in the next few years are default or inflation and both will mean disaster . When doing automatic forex trading making money is naturally the goal . There is no bias . We want a profit from the foresight we have. So the second question's answer is that the Euro is over sold and will hit a bottom at some point . Probably around 1.23002400 . Really , do you really believe that Germany, one of the largest world economies, will allow the currency to fail? Probably not. More than likely they won't. This happens to be why they are not printing even more Euros and helping Greece bail themselves out. The Euro will be a more sound currency because of what is happening in Greece . The investors world wide will realize that the Euro is a safe option because when they face problems they take the short term loss in order to preserve long term health . So, Therefore, their economy may be taking a beating , but their monetary unit will be better for all of this . The situation in the US of A is exactly the opposite . Short term problems are being solved by printing more money, but this only causes a problem with the long term health of our money and economy . After looking at all that , we soon will be to a point where you will get a great bargain from the Euro that you should take advantage of in your own automatic forex trading. Not just for the previously mentioned reasons, but you also need only look at market psychology . The professionals buy when there is a free fall and then the average person finds out about a crisis, comes in, and then tries to short the move that is already over. This pattern has happened many, many times , and this will continue to occur as long as human physiology includes limbic systems.
David F Dacosta - Is a private trader using technical analysis to do automatic forex trading & futures trading. David makes specific trade recommendations for a small select group of traders. He uses drummond geometry to make his forecasts. Click Here for training materials and a free forex trading forecast.