FOREXYARD: Forex News Blog | |
- Crude Oil Slips on Firmer Dollar
- Ireland in Bailout Negotiations with EU/IMF Delegation
- Euro Recovers on Irish and EU/IMF Talks
| Crude Oil Slips on Firmer Dollar Posted: 18 Nov 2010 02:50 AM PST
The Oil prices are once again dropping, and it is currently traded around $82 level. However, there is much technical data that supports a bullish move for today as described below. Forex traders involved with commodities like this can take advantage of this knowledge by going long on Crude Oil now, and at a great entry price! • Below is the 8-hour chart of the Crude oil. • The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD. • Point 1: The Slow Stochastic shows a bullish cross, signaling that the next move may be in an upward direction. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. • Point 3: The MACD indicates an impending bullish cross, which may signal a upward movement is going to occur in the near future. • The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue. Crude Oil 8-Hour Chart |
| Ireland in Bailout Negotiations with EU/IMF Delegation Posted: 18 Nov 2010 01:45 AM PST
Headlines today are reporting a joint EU/IMF proposal to save the Irish banking system in order to prevent a spread of panic to the rest of the euro zone. This is despite public statements from the Irish government that is determined not to cede control over its finances to outside influences. The bailout may be enough to prop up Ireland but may not save periphery Europe from further contagion problems which would be a negative for the euro. A packaged deal by the EU/IMF to support the collapsing Irish banking system is being strung together in negotiations with Irish government officials. The EU/IMF bailout would come on top of the already 50 billion euros ($67 billion) aid package the Irish government has pledged to prop up its banking system. The largest Irish banks are crumbling due to poor performing property loans. Officials are currently examining the finances of Irelands banking system to identify those banks that will need more funding as the EU/IMF is of the opinion that the present Irish bailout plan will not be sufficient. However, the 750 billion euro EU funding mechanism for member states is designed to be activated once a state requests aid. Ireland has been adamant in its refusal to accept outside aid while ceding control of their financial destiny. The EU/IMF has an interest in arriving at a deal with Ireland to prevent contagion. The longer the crisis carries on, the greater the chance market fears will spread to other EU periphery states such as Spain, Italy, and Greece. Should the Irish banking/debt crisis carry on it will weigh on the EU and be a negative for the euro. Technical studies suggest the EUR/USD is in line for a bearish correction with the next price target for the pair resting at 1.3270. Traders should remember the previous fiscal crisis with Greece led to the EUR/USD trading as low as 1.1875. |
| Euro Recovers on Irish and EU/IMF Talks Posted: 17 Nov 2010 10:01 PM PST
Slight optimism is apparent in the markets this morning as European Union and International Monetary Fund officials travel to Dublin to discuss a possible aid package for the nation's troubled banking sector. The Irish debt crisis is expected to be the center of attention for the rest of the week and traders are strongly advised to follow any developments from the region. Traders are also advised to follow any economic data released from the US as this will likely shed further light on the prospects for the Fed's plan to buy additional $600 Billion in bonds. Some of today's major events: Retail Sales – GBP – 9:30 GMT This is the primary gauge of consumer spending, which accounts for the majority of overall economic activity and is therefore a valuable tool for measuring economic recovery. Unemployment Claims – USD – 13:30 GMT Unemployment remains the most highly watched economic factor in the U.S as it seems to be stagnating around a very uncomfortably high level. After a surprise decline the previous week, this week's number is expected to show an increase in unemployed. This result will undoubtedly weigh on the USD. Philly Fed Manufacturing Index – USD – 15:00 GMT This is a leading indicator of economic health as increased manufacturing means increased consumption and employment, both crucial for economic recovery. |
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