Friday, January 14, 2011

FOREXYARD: Forex News Blog

FOREXYARD: Forex News Blog

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Platinum Prices Reach New All-Time High

Posted: 13 Jan 2011 06:01 AM PST

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Momentum is behind the bullish move as the price of platinum climbed to a new record high. Daily stochastics that are free from divergence show more gains could be in store for the commodity.

The previous all-time high of $1,809 was broken today as the price of platinum has moved as high as $1,826.

With a 4-day rally causing daily momentum to push higher, traders may expect further gains in the commodity. Also supporting more long term gains in the commodity is a lack of divergence on the slow stochastic oscillator. The previous all-time high in early November coincided with rising stochastics that topped out at 79. Today's all-time high has stochastics currently at 92 and rising. This bodes well for potential future gains in the commodity.

Supports for the pair begin at the previous all-time high of $1,809, followed by $1,787.50, $1,665 and 1,628 also stand out as long term supports levels. The rising trend line off the August low should also provide support.

Platinum

GBP/JPY Expected to go Bearish

Posted: 13 Jan 2011 03:40 AM PST

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The volatile of the GBP/JPY pair continues to be affected by the volatile forex market. The last two weeks has seen a lot of bullish strength in the GBP/JPY pair. However, it seems that the pair's bullish run may have run out of steam, and a bearish correction could be underway soon, as a bearish cross has taken place on the Slow Stochastic. In addition, the Relative Strength Index indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.

The next support level is located at the 130.30 level.

GBP-JPY 13-1-2011

Sell Signals on GBP/CHF

Posted: 13 Jan 2011 03:35 AM PST

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Last week’s bullish movement in GBP/CHF has pushed a number of technical indicators into the over-bought territory. As I will demonstrate below, the GBP/CHF may very well be heading for a reversal, as a bearish cross has taken place on the Slow Stochastic. In addition, the Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. Don't forget your Stops and Limits!

GBP-CHF 13-1-2011

Crude Oil Approaching $92.30 Level

Posted: 13 Jan 2011 12:08 AM PST

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Crude oil prices rose significantly in the last week and peaked at $92.30 per barrel. However, the 8-hour chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on crude oil now, and at a great entry price!

• Below is the 8-hour chart for crude oil by ForexYard.

• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.

• Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.

• Point 4: Williams Percent Range also supports the downward direction.

Crude Oil 8-Hour Chart
crude oil 13-1-2011

AUD Takes Dive Following Employment Reports

Posted: 12 Jan 2011 11:30 PM PST

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At the start of today's economic calendar there was a severe blow to the Australian dollar. Amid the horrendous floods presently afflicting the nation, the Australian employment change report also came out well below forecasts and, despite a decrease in the unemployment rate, traders appear to have responded with a sell-off of AUD.

Today's busy calendar will have forex traders highly active in the upcoming European and American sessions. Britain and the euro zone will both publish their interest rate decisions along with monetary policy statements. The US will later publish its trade balance and weekly unemployment claims reports.

Here is a roundup of today's leading events:

12:00 GMT: GBP – Asset Purchase Facility and Official Bank Rate

The release of the Bank of England's (BOE) latest decision regarding its short-term interest rates and its Asset Purchase Facility will no doubt have a heavy effect on the value of the GBP. Predicting the movement of the British currency following such reports is, however, highly difficult given the volatility typically experienced around this event. Traders should make sure to protect their positions today and expect sharp movements in the market.

12:45 GMT: EUR – Minimum Bid Rate

Immediately following Britain's announcement regarding interest rates is the same decision and announcement on the interest rates for the euro zone. The European Central Bank (ECB), as well as the BOE, both plan to hold interest rates steady, but trading tends to become highly volatile around the publication of this event. Traders should guard their positions with conditional orders today to defend against the expected volatility.

13:30 GMT: USD – Trade Balance and Unemployment Claims

The US will be publishing its recent monthly trade balance figure today alongside its weekly unemployment claims report. Given the moderate strength in the dollar lately, these two reports could help sustain those levels if they turn out better than forecast.

Euro Rally Creates Selling Opportunity

Posted: 12 Jan 2011 01:14 PM PST

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Following a better than expected debt auction by Portugal, traders bid the euro higher along with US equities. A strong report from the Fed was also supportive of higher yielding assets. Tomorrow the focus will remain on Europe with interest rate announcements expected from the Bank of England and the European Central Bank.

The euro rallied during the New York trading session following a successful debt auction by Portugal. Strong demand was seen for the debentures of the financially strapped nation but Portugal was forced to offer its bonds at a slightly higher than expected interest rate.

Traders have begun to target Portugal as the next European nation that will request financial assistance from the EU/IMF as the nation struggles to grow its way out of a high GDP to debt ratio. Talk among the financial press has expectations for Portugal to request aide as early as next week.

The Fed's Beige Book was supportive of higher yielding assets this afternoon as the Fed's report suggested the US economy is beginning to pick up the pace of growth in the manufacturing sector and hiring data was seen as positive in various regions of the country.

The EUR/USD was up sharply at 1.3130 after opening the day at 1.2989. The GBP/USD is trading higher at 1.5766 from 1.5635. The AUD/USD was up at 0.9945 from 0.9847. Spot crude oil was bid higher at $91.27 from $91.19. The Dow Jones Industrials Average was sent sharply higher by 0.7%.

Tomorrow Europe will once again be in the spotlight with interest rate announcements expected from the Bank of England and the European Central Bank. No changes to the interest rates are expected from either central bank but comments on the European debt crisis will be followed closely.

Today's appreciation may have set up an opportunity to enter short on the EUR/USD with savvy traders selling into rallies of the pair. The rally today halted at the 20-day moving average. A stop above this level may be appropriate. Further resistance may be found at the January 3rd low at 1.3250, a level that coincides with the 50-day moving average. Support is located at the November low of 1.2960, followed by the January low of 1.2870.
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