Friday, November 12, 2010

FOREXYARD: Forex News Blog

FOREXYARD: Forex News Blog

Link to Forex Trading Education : Forex Trading Blog by FOREXYARD

Is the Price of Gold Heading for $2,300 an Ounce?

Posted: 11 Nov 2010 06:35 AM PST

printprofile

Debate over the Fed's recent QE2 maneuver has been generating some interesting volatility on commodity prices, particularly Gold. We've seen the US dollar gaining strength as investors anticipate the possibility of renewed inflationary growth in the US, but occasionally there is similar counter-pressure from investors working to price in the devaluation which must naturally accompany a money-printing policy such as QE2.

Commodity prices appear to be rising despite a strengthening USD, but there have been a few minor blips in downward movement amid growing concerns as to the effect of QE2. Moreover, the sudden weakness of the EUR in recent days, due to debt concerns in Europe's periphery, has also added to these fluctuations in both the USD and commodity prices.

Previous articles have harped on the notion of a rising price of Gold, and nothing really seems to be able to change that analysis. We've seen Gold reach a nominal record high of $1,420 an ounce, even though its true record, after adjusting for inflation, was reached about 30 years ago.

What is interesting in this observation is the price reached at that time, in today's dollars. When Gold took off in the 1980s, its value in today's dollars was around $2,300 an ounce. If today's price of Gold is heading in a similar direction, then right now may be the best time imaginable to open a Gold Trading Account and start making profits. What are you waiting for?

Markets May See Volatility Despite Slow News Day

Posted: 11 Nov 2010 12:20 AM PST

printprofile

Euro zone sovereign debt issues on the one hand, and the Federal Reserve resumption of bond buying programs on the other, continue to dominate market sentiment, causing great swings in currency levels, particularly the EUR/USD pair.

With bank holidays in the U.S, Canada and France today, no news events are expected today.

However, traders should follow the G20 meeting of finance ministers and central bankers taking place today and tomorrow as the leaders of the leading industrial nations are likely to focus on the current "currency war" situation. The future of the dollar and recent actions by the Federal Reserve are likely to take center stage.

Crude Oil Hits 25-Month High

Posted: 11 Nov 2010 12:03 AM PST

printprofile

Crude Oil reached a 25-month high for a fifth consecutive session on Thursday as strong industrial output sent demand in China to a record and a surplus subsided in top consumer the United States. However, the daily chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. 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 for Crude oil by ForexYard.

• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD.

• Point 1: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The MACD indicates an impending bearish cross, signaling that the next move may be in a downward direction.

Crude Oil Daily Chart
crude oil 11-11-2010

Euro Slumps while Dollar Climbs

Posted: 10 Nov 2010 01:44 PM PST

printprofile

A renewal of the European debt crisis is pressuring the euro today as traders flock to the dollar. The Japanese yen also put in a strong performance today.

The euro sank following an increase in the spreads of 10 year Irish government debt and German Bunds as the difference is now the largest in the bonds' history. Talks of a potential default by Ireland have caused the spread to rise. To stave off a potential default scenario, some economists believe Ireland will be forced to activate the European funding mechanism that Greece drew upon at the height of the debt crisis over the summer.

The EUR/USD fell to its lowest level in one month and is currently trading at a price of 1.3770, after opening the day at 1.3761. The USD/JPY was up sharply at 82.60, following an opening day price of 81.76. The USD/CHF is stronger and is now trading at 0.9750, up from 0.9650.

Helping to drive the dollar higher has been better than expected economic data from the US. Today the US reported a smaller trade balance and less than expected new unemployment claims.

The USD/JPY has been the strongest performer as the pair breached through the 82 resistance level that the pair has flirted with for the past three weeks. Today the pair climbed as high as 82.80, the pivot from September 14th. A breach of this resistance level could carry the pair as high as 85.90, the high following intervention by the Japanese Ministry of Finance.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)