FOREXYARD: Forex News Blog | |
| Gold Set for a Bearish Correction Posted: 30 Aug 2010 01:27 AM PDT
Gold prices have been rising substantially over the last few weeks, as the commodity is being seen more and more as a safe haven while the pace of the global economic recovery is being questioned. As we will show through a number of technical indicators, prices may have reached a saturation point, meaning a downward correction could take place. For our analysis, we will be looking at the 8-hour chart for gold, provided by Forexyard. The technical indicators being used are the Relative Strength Index (RSI), the Williams Percent Range and the MACD. 1. As can be seen, the RSI is currently trading right above the upper resistance line, at the 70 level. This is typically seen as a sign that gold is in overbought territory and a bearish correction is likely to take place. 2. The Williams Percent Range is trading right at the -20 level. Anything above this level is considered to be overbought, and is usually considered to be a sign of impending downward movement. 3. The MACD has formed a cross well above the moving signal in a clear indication that the commodity has reached a saturation point in the market. Traders can expect downward movement, as investors are likely to begin selling off their positions. |
| US and Canadian Dollars on Today’s Agenda Posted: 29 Aug 2010 10:28 PM PDT
Today's primary news events will be circling the US and Canada at 12:30 GMT since both economies are scheduled to release a series of figures at that time. The US dollar has been climbing steadily since last week as the market looks to this Friday's release of Non-Farm Payrolls for more certainty and direction in this time of risk aversion. Today's leading news events: 12:30 GMT: CAD – Current Account - The Current Account is a measure of the difference between a country's exports and imports and acts as one gauge of a nation's trade balance. Canada's deficit has grown somewhat worse than forecasted these past few months, and if today's reading is anything similar we should see the CAD take a minor dive against some of its currency rivals. 12:30 GMT: USD – Personal Spending - The Personal Spending report is one of the more important data releases for the US economy, but its impact is muted since the Retail Sales report is issued approximately two weeks earlier. Nevertheless, this report measures the percentage change of consumer spending across the United States for the previous month, making it an accurate gauge of consumer confidence, spending, and growth. If this figure comes in line, or higher, than forecasts, we should see the USD continue to gain a bit more in today's trading. |
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