FOREXYARD: Forex News Blog | |
- Buy Signals on Crude Oil
- Traders Eye Fed Statement and Crude Oil Inventories
- Gold- Technical Update
- USD/DKK- Technical Signal
- Technical Update – Silver Continues its Decline
- GBP Slides on Poor GDP Figures; MPC to Vote on British Rates
- Crude Oil May Turn Bullish
- EUR/USD Likely to See Downward Reversal
- Weak GDP Sinks the Pound
- USD/SEK Approaching Key Support
| Posted: 26 Jan 2011 06:52 AM PST
Crude oil prices have recorded much bearish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, the 8-hour chart's Stochastic Slow signals that a bullish reversal is imminent. An upward trend today is also supported by relative Strength Index. Forex traders involved with commodities like this can take advantage of this knowledge by going long on Crude Oil now, and at a great entry price! The next resistance levels are found at the $87.00, $87.30 and $87.70 levels
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| Traders Eye Fed Statement and Crude Oil Inventories Posted: 26 Jan 2011 04:19 AM PST
As the US trading session nears, traders are anticipating the FOMC statement as well as US crude oil inventories. Prior to the releases both the euro and crude oil are trading higher on expectations for the Fed to follow through on their $600 Bn quantitative easing program. Earlier in the day the Bank of England released its monetary policy meeting minutes that showed another member of the policy committee has come out in favor of raising the benchmark interest rate for Britain. This is the second consecutive day the UK has surprised the markets following yesterday's significantly weaker than expected 4Q GDP numbers which posted a 0.5% contraction. Today traders responded to the announcement from the BOE by bidding the pound higher versus the dollar as the GBP/USD corrected more than 50% of yesterday's declines. At lunchtime of the European trading session the GBP/USD was up at 1.5875 from 1.5814. The EUR/USD was higher as the pair pushed above the 1.3700 before falling back to its opening day price of 1.3691. Spot crude oil was up at 86.73 from 86.52. Markets have quieted prior to the release of the FOMC meeting minutes at 19:15 GMT. Most economists expect the Fed to announce its intention to follow through on the QE II program and purchase $600 Bn of treasuries. A positive surprise from the meeting minutes may be an upgrade to the Feds outlook on the US economy. A quiet Fed meeting may allow for current market trends to extend themselves further and the EUR/USD could push above 1.3700 to the Nov 22nd pivot at 1.3780. US crude oil inventories are due to be released today at 15:00 GMT with market expectations for an increase to inventory numbers by 0.9 Mn barrels. Spot crude oil prices appear to have found support at the 100-day simple moving average where the price has turned higher. A larger than expected draw down will be a positive for spot crude oil prices with short term resistance located at $87.00 followed by $88.80. |
| Posted: 26 Jan 2011 03:49 AM PST
Gold prices have mostly fallen for the past week, and an ounce of gold was trading for as low as $1,322. Currently, as a bullish cross takes place on both the 8-hour chart’s MACD and Slow Stochastic, the bullish move looks to be expected today, with potential to reach $1,345 an ounce. This might be a great opportunity for forex traders to join a very popular trend.
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| Posted: 26 Jan 2011 02:47 AM PST
This pair is showing a price just beginning to ascend out of the over-sold region on the daily RSI, suggesting a momentum shift may be occurring to the latest string of downward movements. The imminent bullish crosses on the daily Stochastic (slow) oscillators also suggest that forex traders may have a great opportunity to catch a trend reversal in action. When the price swings back upward, going long with tight stops could turn out to be highly profitable. • The next resistance levels are found at the 5.4450 levels
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| Technical Update – Silver Continues its Decline Posted: 25 Jan 2011 11:38 PM PST
The price of spot silver once again found support at a previously identified price level and a breach of $26.50 may set the stage for a significant retracement of the August to January move. We have already seen a move below the rising trend line from late August to early January when the price of spot silver broke below the $28 support level. As previously identified, $26.50 has provided support over the past two days. Should spot silver move below this level, the commodity should continue its decline until the $25 dollar support area. A long term target may be a 61.8% retracement of the August to January move near the $22.80 level. The $28 support will now act as a resistance level, as should the January 19th high at $29.50.
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| GBP Slides on Poor GDP Figures; MPC to Vote on British Rates Posted: 25 Jan 2011 11:00 PM PST
Following yesterday's dismal reading from the United Kingdom regarding its gross domestic product (GDP), the British pound took a sharp nose-dive against most of its currency rivals. Today's vote by the Bank of England's (BOE) Monetary Policy Committee (MPC) could also surprise traders given this latest economic figure. Also today, the United States will be releasing its latest decision regarding its Federal Funds Rate, which is the short-term interest rate set by the Fed. Rates are expected to remain unchanged, but the statement released in tandem with the rate decision could hint at future monetary policy changes and traders should be on guard against expected volatility. Here is a roundup of today's leading events: 9:30 GMT: GBP – MPC Meeting Minutes As mentioned above, the MPC will release the results of its latest vote on British monetary policies. Not much change is expected from last month's vote, but yesterday's shocking GDP figures may put pressure on the MPC to attack economic growth more aggressively. 19:15 GMT: USD – Federal Funds Rate and FOMC Statement The Federal Open Market Committee (FOMC) will be publishing its latest decision on short-term interest rates in the US; also known as the Federal Funds Rate. Interest rates in the US are forecast to remain unchanged for the foreseeable future, but recent optimism in American economic growth has some speculators anticipating a hawkish statement from the FOMC following its official announcement. Traders should anticipate heavy USD volatility surrounding this event. |
| Posted: 25 Jan 2011 10:38 AM PST
Crude oil prices are once again dropping, and it is currently traded around $86.40 per barrel. And now, the 4-hour chart’s Slow Stochastic is giving bullish signals, indicating that crude oil prices might go up. In addition, the Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. Forex traders can take advantage of this imminent upward movement by entering long positions at an excellent entry price. The next resistance levels are found at the 86.70, 87.00 and 87.50 levels
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| EUR/USD Likely to See Downward Reversal Posted: 25 Jan 2011 09:12 AM PST
A bullish movement of the EUR/USD cross hasn't received much support as of late. Below, I will demonstrate that the EUR/USD pair has already commenced a downward trend for today, 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, and the cross may tumble another 50-110 pips in the coming 2 days. Traders are strongly advised to take advantage of the trend at an early stage. Therefore, why not open short positions at an excellent price? The next support level is located at the 1.3580 level.
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| Posted: 25 Jan 2011 05:35 AM PST
A surprising 4Q GDP report from Britain showed the British economy actually contracted. In response the pound sold off sharply as traders adjust their expectations for Bank of England interest rate moves. At lunch time during the European trading session, the GBP/USD was down at 1.5760 after opening the day at 1.6004. The EUR/GBP was up sharply at 0.8620 from 0.8533, while the GBP/JPY was down at 1.29.98 from 131.89. The disappointing GDP data came as a surprise to the market as economists had forecasted a rise in 4Q GDP of 0.5%. Instead the British economy actually contracted by 0.5%. Following the negative economic data, traders sold the pound after exiting positions that were taken following a change in British interest rate expectations. Prior to today, the market had been pricing in a 0.25% bump up in British interest rates by the BOE in order to stem inflation. As this trade unravels, the pound should continue to decline. The GBP/USD has moved below its 100-day moving average and is continuing to decline. The next support for the pair is the 1.5660 level. A breach below this support would target the December low of 1.5340. |
| USD/SEK Approaching Key Support Posted: 25 Jan 2011 04:38 AM PST
The USD/SEK has resumed its downtrend and only one support level stands in the way of the 2010 low. Following a breach below the January 4th support level at 6.6580, the bearish trend of the USD/SEK has continued. Limited support levels are found on the daily chart to contain the pair's decline. The first support is found at October low of 6.5130. A breach below this level would target the 2010 low at 6.4812. The January 4th support should now as a resistance level, as well as the 6.7750 level. The falling trend line from the January 2011 high which comes in today at 6.7275 should be supportive, followed by the declining trend line off the November 2010 high.
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