FOREXYARD: Forex News Blog | |
| EUR/JPY uptrend might be at Its End Posted: 16 Sep 2010 11:50 PM PDT
The pair has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 8-hour chart signals that a bearish reversal is imminent, and it might have the potential of reaching towards 111.00 in the coming days. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price. • Below is the 8-hour chart of the EUR/JPY currency pair. • The technical indicators used are the Slow Stochastic, Williams Percent Range, and Relative Strength Index (RSI). • Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 2: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure. • Point 3: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure. EUR/JPY 8-Hour Chart |
| As USD Declines, Today’s News May Provide Insights Posted: 16 Sep 2010 08:41 PM PDT
As the week comes to a close, clients are wondering if the USD's recent decline will continue. Today's news events seem to focus primarily on inflation and consumer confidence in the United States. This means we should receive a modest look into the reactions by US economists and consumers regarding the recent dollar valuations. Here is a round-up of today's leading events: 12:30 GMT: USD – CPI and Core CPI - The US Consumer Price Index (CPI) is an inflationary measure which helps determine the change in purchasing power of the USD. The rate of inflationary growth is also among the leading factors in the interest rate decision-making process by the Federal Reserve. - Core CPI includes the same set of data as the regular CPI, minus food and energy price inflation. Food and energy account for much of the volatility in inflationary figures, making them less reliable. Therefore, the Core CPI tends to have a higher importance on USD valuation as it provides a better look at real inflation. If these figures are released in-line with expectations, the USD should see a modest decline due to risk appetite growth. 13:55 GMT: USD – Prelim UoM Consumer Sentiment - The University of Michigan's (UoM) Consumer Sentiment report measures the level of economic confidence, as gauged by US consumers. When confidence is on the rise, riskier assets tend to gain in value. If confidence is in decline, it tends to reflect with a rise of safe-haven investments, such as the USD and Gold. |
| You are subscribed to email updates from Forex Trading Education : Forex Trading Blog by FOREXYARD To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment