FOREXYARD: Forex News Blog | |
- USD/JPY – Target Below the All-Time Low
- Potential Reversal for AUD/USD
- Positive U.S. Data Strengthens Euro
- More Declines in Store for USD/CHF
| USD/JPY – Target Below the All-Time Low Posted: 31 Dec 2010 03:34 AM PST
As the downtrend for the USD/JPY resumes, a target for traders is identified below the all-time low of 79.75. Looking at the monthly chart, a distinct long-term downtrend is in effect with a falling trend line from the July 2007 candlestick. Support for the pair is identified by the support line underneath the price action beginning in December 2008 with multiple contact points during the downtrend. Next month this support line comes in at 79.10. Theis target is conceivable as momentum appears to be to the downside. The December candlestick looks to set to close near its monthly low and falling weekly stochastics also signal further price moves lower for the USD/JPY.
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| Potential Reversal for AUD/USD Posted: 30 Dec 2010 11:52 PM PST
In the last two weeks trading, the AUD/USD experienced much bullishness, as it stands now at 1.0185. However as I demonstrate below, it seems that the pair's bullish run may have run of steam, and a bearish correction could be underway soon. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price. • Below is the daily chart of the AUD/USD currency pair. • The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic. • Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling 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 Williams Percent Range also supports the downward direction. AUD/USD Daily Chart |
| Positive U.S. Data Strengthens Euro Posted: 30 Dec 2010 09:22 PM PST
A batch of positive data was released from the U.S. economy yesterday and, as a result, the euro has strengthened. The positive data signaled that the U.S. economy is heading towards recovery, and investors took it as a positive sign for year 2011. The direct impact was a boost to risk-appetite reflected in greater demand for higher-yielding assets. This has decreased demand for the dollar, and simultaneously boosted demand for the euro. The EUR/USD reached as high as the 1.3314 during yesterday's session. Another support for the euro came from Germany's Chancellor Angela Merkel. Merkel stated yesterday that Europe stands, in these months, in the middle of a great test. Merkel claimed that the euro must be strengthened, adding that it is far more than a currency. Merkel said that the euro is the foundation of the German prosperity, and that German needs Europe and its common currency. As for today, markets are expected to be relatively calm in light of New Year's Eve. Today's leading news event appears to be the British Nationwide House Price Index (HPI), which is scheduled for 07:00 GMT. This report measures the change in the selling price of homes with mortgages backed by Nationwide. A positive indication is likely to support the GBP. |
| More Declines in Store for USD/CHF Posted: 30 Dec 2010 12:19 PM PST
The monthly chart for the USD/CHF shows a compelling story for further declines in the value of the pair. Looking at the USD/CHF, a support line that runs from the March 2008 low to the all-time low in October has been breached. Should the pair close out the year below this line, further losses may be noted. The pair is currently trading at an all-time low, therefore, support lines are absent from the charts. Traders may be targeting the daily chart's lower channel line which comes in tomorrow at 0.9290. Resistance for the pair is found at the monthly chart's lower channel line which begins at the March 2008 low. Next month this price level is found at 0.9450. Further resistance is located at height of the December monthly candlestick at 1.0050.
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