FOREXYARD: Forex News Blog | |
- USD Set to Reverse Gains on ZAR
- CHF/JPY May Turn Bullish
- EUR/CHF Likely to See a Downward Reversal
- Dollar Bullishness Continues For Second Consecutive Day
- U.S. Unemployment Claims Report Expected Tomorrow
| USD Set to Reverse Gains on ZAR Posted: 06 Jan 2011 03:18 AM PST
While the dollar has made some fairly impressive gains on the rand as of late, the pair may be in store for a downward correction according to technical indicators. Since the 3rd of this month, the USD/ZAR has gone up over 1700 pips, and is currently trading around the 6.7660 level. At the same time, the 8-hour chart is showing signs of an impending bearish move. Both the Williams Percent Range and RSI are overbought, while a bearish cross has already formed on the Slow Stochastic. Traders may want to go short in their positions, as the pair may drop to the 6.7000 level in the near future.
|
| Posted: 06 Jan 2011 03:15 AM PST
After spending the better part of the last two days stuck in a downward spiral, technical indicators are now showing that the Swiss franc is poised to turn bullish against its Japanese counterpart. As we can see in the chart below, the Williams Percent Range and Relative Strength Index are already in oversold territory, indicating a bullish correction is imminent. The Stochastic Slow has yet to form a bullish cross, but appears to be heading in that direction. When it does, traders can expect the correction to take the pair toward 86.75 level. |
| EUR/CHF Likely to See a Downward Reversal Posted: 05 Jan 2011 11:50 PM PST
Over the last two days, the euro has been making substantial gains against its Swiss counterpart. The EUR/CHF pair has gone up more than 250 pips in that time, largely due to the recent surge in risk taking following positive news out of the US. While investors are still willing to bet on more volatile currencies like the euro, technical indicators are showing that against the franc, the 16-nation common currency may have peaked. We will be looking at the EUR/CHF 4-hour chart, provided by ForexYard. The technical indicators being used are, the Williams Percent Range, Relative Strength Index, and Stochastic Slow. 1. The Williams Percent Range is currently very close to the 0 line, in what is a clear sign that a bearish reversal is likely to take place. 2. The Relative Strength Index has been trading in overbought territory for some time now. This can be taken as yet another sign that a downward reversal is likely to take place. 3. A bearish cross appears to be forming on the Stochastic Slow, indicating that a correction will occur in the near future. The next support line for this pair is right around the 1.2610 level. Should this level be breached, further downward movement is likely to occur. |
| Dollar Bullishness Continues For Second Consecutive Day Posted: 05 Jan 2011 10:36 PM PST
The rise in the value of the US dollar moved into its second day as traders back from the New Year holiday appear set on bidding the greenback higher versus the majors. Better than expected US economic data releases are giving traders a reason to bid the dollar higher. Yesterday surprisingly strong private payroll numbers were supportive of a higher dollar and in turn the greenback rose against the majors. Today's Data Releases: GBP – Services PMI – 09:30 GMT EUR – German Factory Orders – 11:00 GMT USD – Weekly Unemployment Claims – 13:30 GMT |
| U.S. Unemployment Claims Report Expected Tomorrow Posted: 05 Jan 2011 10:15 AM PST
The weekly report of the U.S. Unemployment Claims is scheduled tomorrow at 13:30 GMT. This report measures the number of individuals who filed for unemployment benefits for the first time during the past week. Over the last five weeks, the amount of people that filed for unemployment insurance has decreased steadily, and two weeks ago, in the week ending on December 25, it dropped to 388,000 claims, its lowest level since July 2008. Why is it important for forex trading? The U.S. dollar, which is the leading global currency, is a sub-product of the U.S. economy. When a large percentage of the economy is unemployed, it's a signal that the economy isn't functioning properly, and as a result is likely to weaken the local currency. Due to the fact that the USD plays such a leading role in the foreign-exchange market, this data tends to impact many currency pairs and crosses, not only those pegged to the dollar. How will tomorrow's data impact the dollar? Analysts have forecasted that 400,000 people have filed for unemployment benefits in the last week in 2010. This will, at least temporarily, halt the decreasing pattern of the unemployment claims. As a result, investors might see it as signal that the economic recovery may stall, and might turn them to close their long position on the dollar. However, if the end result will be better-than-expected, its impact is likely to further strengthen investors' belief that the U.S. economy is recovering, and has potential to boost the dollar against its major currency counterparts. |
| You are subscribed to email updates from Forex Trading Education : Forex Trading Blog by FOREXYARD To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment