FOREXYARD: Forex News Blog

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USD/SEK Expected to go Bullish Posted: 27 Jan 2011 11:52 PM PST The USD has dropped significantly versus the SEK in the past 3 weeks, and it is currently traded around 6.4430. And now as evident in the data below, the daily chart is giving bullish signals, indicating that USD/SEK pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. • Below is the daily chart of the USD/SEK currency pair. • The technical indicators that are used are the MACD, Relative Strength Index (RSI), and Slow Stochastic. • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction. • Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. • Point 4: The MACD indicates an impending bullish cross, which may signal an upward movement is going to occur in the near future.

U.S. Advanced GDP on Tap Posted: 27 Jan 2011 11:32 PM PST Yesterday, Standard & Poor's announced that their downgrading Japan's credit ranking from AA- to AA, due to the sluggish economy that doesn't seem to know how to address its sovereign debt of $11 trillion. This was the first time in nine years that S&P has cut Japan's credit ranking. The market, of course, had an immediate impact to this turn of events, and the Japanese yen instantly depreciated against all the major currencies, including a 100 pips fall against the U.S. dollar and the euro and the British pound. In the meantime since then, the yen has corrected come of its losses, but the Japanese currency is still trading at relatively low levels. It now seems that any further comment regarding the Japanese debts are likely to create similar responses in the market. As for today, several significant economic releases are expected from around the globe. Here are the leading two: • 10:30 GMT, Swiss KOF Economic Barometer This is an index, which is designed to predict the direction of the economy over the next six months. The expectations are that the index result will be 2.09. However, if the end result will beat expectations, the CHF might strengthen as a result. • 13:30 GMT, U.S. Advance Gross Domestic Product (GDP) The GSP measures that change in the total value of all goods and services produced by the economy, and thus considered to be the primary gauge of the economy's health. If the end result will reach projection to a 3.5% rise, the dollar might see a rising trend against its major currency rivals.

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