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In the wake of World War II, both Germany and Japan were helped to develop new financial systems. Both countries created central banks that were fundamentally similar to the Federal Reserve of USA. Along the line, their scope was customized to their domestic needs and they diverged from their model.

Like the other central banks, the Federal Reserve of the USA affects the foreign exchange markets in three general areas:

the discount rate;
the money market instruments;
foreign exchange operations.

For the foreign exchange operations most significant are repurchase agreements to sell the same security back at the same price at a predetermined date in the future (usually within 15 days), and at a specific rate of interest. This arrangement amounts to a temporary injection of reserves into the banking system. The impact on the foreign exchange market is that the dollar should weaken. The repurchase agreements may be either customer repos or system repos.

The Inverse Head-and-Shoulders formation is a mirror image of the Head-and-Shoulders Forex Pattern.  Therefore, you can apply the same characteristics, potential problems, signals, and trader's point of view from the preceding presentation.

The head-and-shoulders pattern is one of the most reliable and wellknown chart formations. It consists of three consecutive rallies. The first and third rallies—the shoulders—have about the same height, and the middle one—the head—is the highest. All three rallies are based on the same support line (or on the resistance line in the case of the reversed head-and-shoulders formation), known as the neckline.

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Fundamentally, the minimal lot size for a trade is $10,000. Thus the leverage limitations are set according to the amount you choose to trade, for instance, for the above lot of 10,000$ for a trade size of 25$ the maximum leverage is 400, for 50 the leverage is 200 and for trade of 100$ we have the leverage of 100.

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