FOREXYARD: Forex News Blog | |
- EUR/USD Looks to Move Higher
- US Unemployment Claims to Add to Risk Appetite
- Has Platinum Reached its Peak?
- AUD/CAD May Turn Bearish
- British Pound Poised for Short-Term Comeback
- Is the GBP/JPY Due for a Reversal?
- Pound Outperforms the Majors
| Posted: 19 Jan 2011 11:11 AM PST
Following today's push above the 1.3500 level, the consolidation period for the EUR/USD has ended and the pair should move higher. Today the EUR/USD moved above the December high of 1.3500 and currently has momentum behind the bullish move. Only two major resistance levels stand out on the way to the November 2010 high. The first resistance level comes in at the November 22nd pivot at 1.3780, followed by 1.3970. The last target higher may be a 100% retracement of the November thru January move at 1.4280. Support for the EUR/USD will come in at the December high of 1.3500, with further support at this week's low of 1.3240.
|
| US Unemployment Claims to Add to Risk Appetite Posted: 19 Jan 2011 07:00 AM PST
Global employment figures and consumer confidence appear to be on the rise these past few weeks. Investors appear to be closing out their short positions on the higher yielding currencies in preparation for a shift in their portfolios. If risk appetite is shifting favorably, we could see the employment data from the world’s large economies carrying a significant impact on outlook. Tomorrow’s unemployment claims report from the United States comes at a crucial moment for forex traders. Decreases in unemployment appear to be coinciding nicely with boosts in consumer confidence and rises in retail sales. These results are no coincidence, however, as they fall in line nicely with economic recovery. The American job sector has seen some improvement lately, with ADP and NFP reports from last month showing significant growth in both the public and private sector at year-end. Tomorrow’s weekly Unemployment Claims figure may also show a decline in applications for unemployment insurance by US citizens, connecting the American market with a similar occurence in Britain just this morning. The US dollar’s sudden weakness over the past several days was connected with short-coverings on European and Pacific currencies by Asian markets. Boosted optimism over the weekend regarding European growth targets fed the EUR rally as well. A rise in risk appetite from positive US employment figures tomorrow could have the effect of pushing down on the greenback from an increase in demand for higher yielding assets. Traders should look to short the USD tomorrow should the Unemployment Claims report come out as positive as expected. |
| Has Platinum Reached its Peak? Posted: 19 Jan 2011 03:58 AM PST
Platinum prices rose significantly in the last two weeks and peaked at $1845 an ounce. And now, there appears to be a recent bearish cross on the 4-hour chart's Stochastic (slow) and MACD, highlighting significant downward momentum building on this commodity’s price. In addition, the Relative Strength Index (RSI) has the price floating in the over-bought region, suggesting that more pressure is on the way. Forex traders may want to take this opportunity to catch the downward correction on Platinum, which appears to be imminent.
|
| Posted: 19 Jan 2011 03:54 AM PST
The pair has recorded much bullish behavior in the past few days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 4-hour chart slow stochastic signals that a bearish reversal is imminent. 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 imminent downward movement by entering short positions at an excellent entry price. • The next resistance levels are found at the 0.9990, 1.0030 and 1.0050 levels
|
| British Pound Poised for Short-Term Comeback Posted: 19 Jan 2011 03:00 AM PST
Following this morning's employment data releases from the United Kingdom, the British pound appears poised for a correction. The UK Claimant Count Change report showed a decrease in unemployment claims by approximately 4,100 individual claims over the past month. Moreover, the national unemployment rate remained unchanged at 7.9%. The GBP/USD fell broadly yesterday after touching the 1.6015 level, hitting a low of 1.5944 this morning before turning back upwards. The pair continues to trade within a bullish channel and the 1.5940 support line may represent the lowest level of this trend in the short-term. The pair now appears to be climbing back towards 1.6000 with the potential to make a second attempt to break through its 1.6015 resistance level. This week's industrial orders data on Thursday and retail sales figures on Friday from the UK should help clarify the direction of the pound going into next week. As it stands this week, the GBP appears to be in a corrective movement against the dollar. As mentioned above, UK employment appears stable, even positive, while the US dollar recently took a dip from EUR short-covering and the broad purchase of the euro and Australian dollar by Asian banks. Look to go long on the GBP/USD through the remainder of the day. |
| Is the GBP/JPY Due for a Reversal? Posted: 18 Jan 2011 11:57 PM PST
The sustained upward movement of the GBP/JPY pair doesn't seem to be receiving much resistance lately. As I will demonstrate below, the price of GBP/JPY may very well be heading for a correction. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price. • Below is the daily chart for the GBP/JPY. • The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and Williams Percent Range. • Point 1: The Slow Stochastic indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. • Point 3: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure. GBP/JPY Daily Chart |
| Posted: 18 Jan 2011 11:36 PM PST
The Cable has been one of the strongest performers in the new year with the pound gaining 2.5% on the dollar. Rising inflation concerns in Britain have traders expecting a rise in British interest rates as the BOE attempts to prevent inflation from spinning out of control. Yesterday British yearly CPI came in above expectations rising 3.7% rather as opposed to only 3.3%. Interest rate differentials are also playing a role in the cable's appreciation with the Fed not expected to raise US interest rates until 2012. Today's major news events are: GBP – Claimant Count Change – 09:30 GMT Expectations: -0.3K. Previous: -1.2K. USD – Building Permits – 13:30 GMT Expectations: 0.56M. Previous: 0.54M. CAD – BOC Press Conference – 16:15 GMT The Bank of Canada will expand on the dovish monetary policy and decision to hold Canadian interest rates steady yesterday. Support and resistance for the USD/CAD are found at the February 2010 low at 0.9710 and the October and November lows at 0.9980. |
| 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