FOREXYARD: Forex News Blog | |
- Gold Trading Update
- Is the GBP/NZD Due for a Reversal?
- Aussie Set for Bullish Run against the Greenback
- ADP Non-Farm Payrolls on Tap for Today
- AUD/JPY Poised for Serious Bullish Movement
- ADP Non-Farm Employment Change on Tap
| Posted: 05 Jan 2011 05:51 AM PST
Gold steadied on Wednesday, a day after its largest sell-off in nearly two months, buoyed by consumer demand, which helped offset the potentially negative impact of a stronger dollar following fresh upbeat U.S. data. A ray of sunshine for investors, however, is the predictable bouncing behavior we should see in gold prices for the next month or so. I'd expect to see gold bouncing against the $1360 price mark at least one time before continuing a strong uptrend. Entry orders for long positions around that price are to be expected; I would be surprised to see a major breach below that point as a result. Below is the daily chart of gold provided by ForexYard. I've drawn Fibonacci retracement lines over the chart to illustrate the support and resistance levels relevant. It's clear that at the 23.6% retracement level we have a very solid support line which has been tested in the last month. This line is also on the price of $1360 an ounce which, as mentioned earlier, represents the lower border of our range-trading trend. Once again when the rising trend has been identified, traders should only be long on gold. Entries and exit strategies should then be identified from the hourly charts. Gold Daily Chart |
| Is the GBP/NZD Due for a Reversal? Posted: 05 Jan 2011 02:29 AM PST
While the UK pound has been steadily moving up against the kiwi over the last few days, technical indicators are now saying that the trend is likely to end in the near future. Not only is there a bearish cross forming on the 8-hour chart’s Stochastic Slow, but both the RSI and Williams Percent Range are in overbought territory. Traders will want to keep a close eye on the pair as a downward trend is likely to occur. |
| Aussie Set for Bullish Run against the Greenback Posted: 05 Jan 2011 02:24 AM PST
While the Australian dollar has dropped substantially against its US counterpart since the beginning of the week, technical signs are now pointing to a possible bullish reversal for the pair. The Williams Percent Range and Relative Strength Index are both in oversold territory, while a bullish cross has formed on the Stochastic Slow. Once the reversal begins, it does not appear out of the question for the pair to reach the 1.0200 level in the coming days. Now appears to be a great time for traders to go long in their positions at a great entry price. |
| ADP Non-Farm Payrolls on Tap for Today Posted: 05 Jan 2011 12:17 AM PST
Traders eager for markets to return to their pre-holiday volatility levels should pay particular attention to today’s US ADP Non-Farm Payrolls figure, set to be released at 13:15 GMT. Economic indicators out of the US have been relatively strong over the last few weeks, and have led to an increase in investor confidence in the global economic recovery. As such riskier currencies, like the euro and UK pound have made fairly significant gains against the safe-haven USD and JPY. The ADP figure precedes US government employment data by two days, and as such, is considered a solid predictor of the official statistic. Analysts are predicting today’s indicator to come in at around 101K, which, if true, would signal the third consecutive month that employment rose in the US. While the number is not significant enough to state that the US employment sector is fully over the economic crisis, it is a clear indication that it is going in the right direction. The euro is likely to maintain its recent bullish trend should the employment figure come in at or above its predicted level. Currently the EUR/USD is trading just belowthe 1.3300 level. A solid ADP figure could send the pair well above yesterday’s high of 1.3430, and it may even approach the 1.3500 resistance line. Turning to the rest of the week, traders will obviously want to pay attention to Friday’s Non-Farm Payrolls for the official US government employment figure. In addition, the latest US Unemployment Rate will be announced. Early forecasts are saying that the unemployment rate will likely drop from 9.8% to 9.7%. If true, the markets are likely to see heavy fluctuations as a result. |
| AUD/JPY Poised for Serious Bullish Movement Posted: 04 Jan 2011 11:38 PM PST
After tumbling close to 100 pips in yesterday’s trading session, the AUD/JPY appears to be on the verge of an upward correction. Currently trading just above the 82.00 level, technical indicators are currently showing that a bullish move is likely to occur in the next 24-hours. We will be looking at the daily chart for the AUD/JPY, provided by ForexYard. The technical indicators being examined are the Bollinger Bands, Williams Percent Range and Relative Strength Index. 1. As seen in our chart, the Bollinger Bands have begun to widen, which is typically seen as a sign of an upcoming reversal. Furthermore, the price ticks are well below the lower band, indicating that the reversal is likely to be upward. 2. The Williams Percent Range is currently right around the -90 level. Usually, anything below -80 is a sign that the instrument is in oversold territory. This appears to be the case at the moment, and is another sign that a bullish move is on the horizon. 3. The Relative Strength Index is currently well below the lower support line, indicating that a reversal may occur in the near future. Now may be a great time for forex traders to go long in their positions at a great entry price.
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| ADP Non-Farm Employment Change on Tap Posted: 04 Jan 2011 10:17 PM PST
Yesterday offered the forex traders many unique opportunities to see nice profits. The EUR/USD pair fell about 160 pips, the GBP/USD gained about 180 pips, and the USD/JPY saw a sharp drop, followed by similar rise – offering traders the ability to gain from both the uptrend and the downtrend. The more exciting trading took place in the commodities markets. Gold saw a very abnormal bearish session, which included a 4,000 pip free-fall. Crude oil saw a sharp depreciation as well, dropping from $92.00 a barrel to $88.35. Today, a heavy news day is expected, and has the potential to either erase yesterday's movements, or to extend them. Here are today's leading news events: • 13:15 GMT, U.S. ADP Non-Farm Employment Change – This report is the ADP's forecast of the change in the number of employed people during the previous month. This forecast is considered to be quite reliable, and thus tends to have a large impact on the market. A better-than-expected figure is likely to support the dollar. |
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