FOREXYARD: Forex News Blog | |
- Can Today’s Speech from the ECB President Help the Euro?
- Gold Hits High Mark then Bounces Off Trend’s Upper Border
- Forex News: Dollar Rally Continues
- Potential Reversal for EUR/GBP
- Denmark May Raise Rates; Swedish Krona in Decline
| Can Today’s Speech from the ECB President Help the Euro? Posted: 10 Nov 2010 03:31 AM PST
With renewed investor concerns in euro-zone debt back in the news, and the EUR/USD pair steadily falling over the last few days, all eyes will be on the speech from the European Central Bank president scheduled to take place at 18:00 GMT today. After hitting a 9-month high against the dollar last week, the euro began a bearish correction that it has not been able to reverse. Currently the EUR/USD pair is trading around the 1.3755 level, down nearly 200 pips since the start of the week. Few analysts believe that the dollar’s bullish trend will last, especially given the quantitative easing plan unveiled by the Fed last week. In addition, the ECB is not expected to implement any significant changes in its monetary policy in the near future. Still, traders will want to pay attention to today’s speech for clues about how the euro-zone plans to deal with sovereign debt issues in Ireland and Portugal. A concrete plan from the ECB will likely go a long way in enticing investors to go back their riskier positions, thereby weakening the fragile greenback. In addition to the ECB speech, traders will also want to pay attention to the latest US Unemployment Claims figure, set to be released at 13:30 GMT. Last week’s surprisingly positive Non-Farm Payrolls figure went a long way in helping the dollar against its main currency rivals. While it is unlikely today’s news will have the same impact, a better than expected figure may lend some assistance to the USD in afternoon trading. Although analysts still remain pessimistic overall in the US economic recovery, an improvement in the employment situation may be a good start in helping the greenback recover. |
| Gold Hits High Mark then Bounces Off Trend’s Upper Border Posted: 10 Nov 2010 01:36 AM PST
Gold prices have been on a rollercoaster ride these past few trading days. Following the announcement by the US Federal Reserve of a new round of quantitative easing, now known as QE2, the price of gold immediately climbed to a recent high of $1,424.10 an ounce. However, the subsequent profit-taking action across the market at the start of this week has driven the US dollar much higher while simultaneously pulling commodity prices downward. These price swings in gold's price have caused a stir among market participants, many of whom have profited greatly by capturing these movements with their new Gold Trading Accounts, now available at ForexYard. As we can see in the chart below, there are two bullish trend lines interacting with one another, creating a distinct bullish channel. As the price climbed towards the upper border of this channel we have witnessed a strong technical reaction resulting in a massive sell-off. Additionally, technical indicators on the RSI and Stochastic (slow) show a build-up of sell pressure on Gold. The first support level to be tested during this correction is near the $1,382 price mark, while the second, stronger support level rests near last week's psychological barrier of $1,340 an ounce, with a potential pause occurring near $1,360. Traders operating with our new Gold Trading Account may wish to take this opportunity to go short on Gold until it reaches a safe turning point, likely to occur somewhere between $1,360 and $1,340. Afterwards, this precious metal will likely continue its bullish streak. Gold – Daily Chart |
| Forex News: Dollar Rally Continues Posted: 10 Nov 2010 12:09 AM PST
The greenback continues to rally versus the major currencies, moving past previous support levels and triggering new entry signals for technical traders. Today's news events may also turn out to be dollar positive. US Trade Balance – 13:30 GMT US Weekly Unemployment Claims – 13:30 GMT Crude Oil Inventories – 15:30 GMT The EUR/USD has the 5-day and the 20-day simple moving averages crossing, with the faster moving average moving below the slow moving average, signaling to traders to enter short. While the signal has been choppy the last month, the signal can provide traders with a long term trade with a new trend. |
| Potential Reversal for EUR/GBP Posted: 09 Nov 2010 11:50 PM PST
The EUR has dropped significantly versus the GBP in the past 2 weeks, and it is currently traded around 0.8600 levels. And now as evident in the data below, the daily chart chart is giving bullish signals, indicating that EUR/GBP pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. • Below is the daily chart of the EUR/GBP currency pair. • The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic. • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction. • Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. • Point 4: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure. EUR/GBP Daily Chart |
| Denmark May Raise Rates; Swedish Krona in Decline Posted: 09 Nov 2010 10:59 AM PST
The liquidity exit of the European Central Bank (ECB) may soon drive regional rates higher than Denmark's and subsequently dampen demand for the Danish krone (DKK). Despite their dependence on euro zone credit, Ireland, Greece, and Portugal may find themselves without ECB-added liquidity as the euro zone appears committed to its plans to withdraw emergency funds. The differential between euro-area interest rates and Denmark's interbank rates has begun to turn negative, leading to a higher probability of a rate increase in next month's meeting by Denmark's Nationalbanken. In Sweden, a moderate dip in the krona (SEK) was caused by USD profit-taking following the announcement of the US quantitative easing program (QE2). The USD/SEK rose almost 3.6% in the days following the announcement, and has since remained stable near the 6.7250 level. Sweden also appears poised to raise rates once more in the near future, but dovish statements from the Riksbank following the last rate change have speculators uncertain. USD/DKK Range-Trading The chart below is the USD/DKK daily chart provided by ForexYard. The pair appears to be range-trading between 5.2300 and 5.4270, represented by the 23.6% and 38.2% Fibonacci retracement levels, respectively. The pair appears to be approaching the upper border of its range-trading behavior and indicators are beginning to show impending downward pressure. The Stochastic (slow) on the chart below has what appears to be an impending bearish cross. After completing the cross, the pair is likely to experience growing sell pressure. The RSI has the price in an ascending pattern which suggests the pair has room to go higher. Once it reaches the over-bought region it will support the notion of going short on the pair. USD/DKK – Daily Chart |
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