FOREXYARD: Forex News Blog | |
- GBP/USD Finding Strong Resistance at 1.5820
- Forex: EUR/USD Pushed Lower by Ireland Downgrade
- Crude Oil Bouncing Off 50% Retracement Line at $90
- Oil Inventories Decrease by 3.8m Barrels
- Oil Prices Lifted from Severe Cold in US Northeast
- In-Depth Analysis on Gold Trading Available Now!
- Black Friday May Add Strength to Gold Over Weekend
- Silver Breaking Through Resistance Despite Fundamentals
| GBP/USD Finding Strong Resistance at 1.5820 Posted: 09 Dec 2010 10:20 PM PST
The British pound's recent gains against the US dollar were short-lived yesterday as the pair found strong resistance at 1.5820. The Fibonacci retracement lines drawn on our daily chart suggest that this price level is actually a significant statistical barrier for the pair as the 61.8% line. We can see on the chart below that traders took profit at the 1.5820 level as the pair touched this Fibonacci line. Our Stochastic (slow) on the daily chart below also supports the notion that downward pressure is mounting. Traders may want to take advantage of these long-term fluctuations by entering short positions to capture the retracement back towards the 50% line at 1.5533. The fundamental side appears to support this downward notion as well. A Fitch downgrade of Ireland has put financial strain on the euro zone and UK, helping the US dollar gain ground against its Atlantic rivals. |
| Forex: EUR/USD Pushed Lower by Ireland Downgrade Posted: 09 Dec 2010 09:49 PM PST
The EUR/USD appears to be recovering mildly after yesterday's sharp plummet. Fitch Ratings agency downgraded Ireland's sovereign debt, pushing the euro to recent lows. The pair fell as low as 1.3163 yesterday before recovering back to the 1.3250 price level. If today's trade balance and consumer sentiment reports from the US and Canada come in as positive as expected, the US dollar could continue its bullishness against the EUR. Here is a roundup of today's leading events: 13:30 GMT: USD & CAD – Trade Balance The American and Canadian trade balance figures are set to be published today at 13:30 GMT and the news could help both currencies extend recent bullish gains made against their European counterparts if the reports come as expected. The trade balance measures the difference between imports and exports of a country and reflects levels of demand for the nation's goods. 14:55 GMT: USD – UoM Consumer Sentiment The University of Michigan (UoM) Consumer Sentiment report is a leading indicator of consumer sentiment and consumer spending. It surveys approximately 500 consumers regarding spending, outlook, and optimism regarding the future. If the report comes as expected, or higher, the USD could see some added bullishness before markets close for the weekend. |
| Crude Oil Bouncing Off 50% Retracement Line at $90 Posted: 08 Dec 2010 10:00 PM PST
The price of Crude Oil has been receiving support from the winter season in the northern hemisphere lately, but we are beginning to see technical indicators which suggest downward pressure. The most recent jump in value was towards $90 a barrel. As winter snow storms pound the American northeast, and recently arrive in Western Europe as well, heating fuel costs move upward for a cyclical, annual upturn. As we can see on the charts below, Crude Oil prices have indeed been moving upward cyclically, but also generally. Retracing the price's movement for the past few years allows us to see that the price has in fact reached the 50% retracement level on the weekly chart and should meet some serious resistance at the $90 level. The RSI on the weekly chart shows the price just inside the over-bought region, which suggests that downward pressure is mounting. We can also see that the most recent candlestick is a doji formation, which supports the bearish notion. |
| Oil Inventories Decrease by 3.8m Barrels Posted: 08 Dec 2010 08:14 AM PST
Crude Oil Inventory data released by the Energy Information Administration (EIA) today revealed a decline in inventories for the week ending Dec. 3rd. An expectation for a boost to oil prices failed to materialize, however, as the report signaled that the decline remained above average for this time of year. Crude Oil investors sold the commodity ahead of the release on such expectations, pushing the price of oil down to $88 a barrel. Almost an hour after the publication it looks as if the price of Crude Oil is beginning to find some support with the price pushing back towards $88.20 in the immediate short-term. Whether this will continue into the American close is yet to be determined. |
| Oil Prices Lifted from Severe Cold in US Northeast Posted: 08 Dec 2010 04:42 AM PST
The sudden spike above $90 a barrel in Crude Oil on Monday has many investors paying close attention to today’s release of Crude Oil Inventories from the United States. As the winter season begins to pound the American northeast, with colder than expected temperatures and fresh snowfall in New York, the supply side of the heating fuel equation has come under question, lifting oil and natural gas prices higher in trading. If inventories grow in today’s publication we could see the price of Light, Sweet Crude settle back towards $87 a barrel in today’s American trading session. If inventories decline, on the other hand, speculators could take this as a hint that the supply side is more limited than forecast and begin to lift the price of oil higher. |
| In-Depth Analysis on Gold Trading Available Now! Posted: 06 Dec 2010 12:42 PM PST
Most traders know that Gold is one of the more volatile instruments in the forex marketplace. Large price shifts for seemingly no reason are practically commonplace, and can often confuse the inexperienced trader. It is for this reason that ForexYard has recently published its latest in-depth analysis: The Impact of Gold Trading. This article will provide you, the trader, with some of the most important tools necessary to become knowledgeable in all things gold. The Impact of Gold Trading provides a brief history of gold, as well as an analysis of some of the more significant events that have given shape to the precious metal’s rise in value. Furthermore, a detailed examination of the most recent global economic crisis and its impact on gold will help shed light on the direction the commodity is going, and how you can profit from this knowledge. This article is ideal for standard account holders who have been hesitant to trade in gold, as well as SuperMini account holders who are considering an upgrade. So log onto ForexYard’s website, and read The Impact of Gold Trading today! |
| Black Friday May Add Strength to Gold Over Weekend Posted: 26 Nov 2010 06:24 AM PST
Gold prices appear to be ending the week with little change since Monday. While the precious metal climbed over $30 in value by mid-week, the price had tumbled back to $1353 an ounce as of this afternoon. The trend for Gold appears to remain bullish despite this recent corrective movement. However, we should also note that the retracement experienced since Wednesday could be part of a larger cyclical downturn with take-profit targets at $1340, $1310, and $1280. If holiday shopping picks up over the weekend from Black Friday in the United States, then there is the possibility of a quick rebound in precious metals at the start of next week. If retail sales enter their holiday upswing, we could see demand for jewelry-linked commodities (Gold, Silver, and Platinum) experience a bullish spike as well. The retracement period on Gold appears to be shrinking, which means the target of $1310 may be the lowest Gold reaches before extending its bullish trend further. Traders may want to keep an eye on retail sales and consumer spending figures emerging from the US during the post-Thanksgiving/pre-Christmas shopping period. We can see on the chart below that Gold may be entering the final phase of a head-and-shoulders candlestick pattern, with a target around $1310, and perhaps even as low as $1280. Gold – Daily Chart |
| Silver Breaking Through Resistance Despite Fundamentals Posted: 24 Nov 2010 05:24 AM PST
Silver has been outpacing other precious metals recently, closing at $27.32 an ounce last Friday. This trend continued at the opening of this week’s trading, with Silver closing above $27.80 on Monday. Today, we’ve seen the price descend back to a recent low of $27.18, even though fundamentals have been driving Gold prices higher. A strengthening US dollar may have been one factor pushing against this recent wave of bullishness being seen among precious metals. EUR weakness could also be adding to the USD’s latest gains. Silver traders should be keeping their eyes on news coming from Europe. Any flight from the region’s assets will likely end up in the US dollar, putting downward pressure on precious metals, oil, and other commodities. Moreover, any increase in interest rates in China could also suppress demand for precious metals. As we head into the holiday shopping season, precious metals like Gold and Silver should find added support. Claims for $30 Silver have been posited, and expectations for an impending cyclical downturn in both Gold and Silver has been documented by me previously; but taking place, most likely, after 1 January 2011. |
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