FOREXYARD: Forex News Blog | |
- US Non-Farm Payrolls to be Released Tomorrow!
- Platinum- Bearish Correction Looks to Continue
- GBP/USD- Technical Update
- Silver Likely to Enter Downward Trend
- European Interest Rates on Tap Today
- Sell Signals on NZD/USD
| US Non-Farm Payrolls to be Released Tomorrow! Posted: 03 Feb 2011 04:51 AM PST
With tomorrow’s US Non-Farm Payrolls figure set to create major volatility across the forex marketplace, now may be a good time to look at what analysts are predicting the employment number will be, and how it could potentially affect the USD. At the moment, most forecasts are saying that the US added approximately 133K jobs in January. If true, the number would signal a marked increase over December’s figure of 103K, and would add further support to the notion that the US economy is recovering. How the potentially positive number could affect the forex market and the US dollar in particular, is the subject of some debate. On the one hand, a solid US employment number would do a lot to boost investor confidence in the global economic recovery. This would in turn increase risk taking among investors which could potentially put pressure on the safe haven dollar while causing currencies like the euro and sterling to turn bullish. On the other hand, positive news out of the US could potentially cause investors to return to the greenback, providing that faith in the US economy goes up as a result. At the moment, the first possibility appears to be the most likely. Throughout the last week, both the euro and UK pound have been bullish, while safe haven currencies like the dollar have gone down. This is despite positive US indicators, like Wednesday’s better than expected US ADP Non-Farm Employment Change. It appears that investors are looking for reasons to bet on higher yielding currencies, and tomorrow’s news may be the catalyst they need. Experienced traders know that the Non-Farm’s figure is notoriously difficult to predict. That being said, if Wednesday’s ADP figure is any indication, the employment situation in the US is turning positive. Still, careful attention should be given to tomorrow’s news. The Non-Farm data is considered the most significant news release of the month, and heavy market movements are guaranteed to occur. |
| Platinum- Bearish Correction Looks to Continue Posted: 03 Feb 2011 04:15 AM PST
Ever since platinum peaked at $1,848 an ounce about two weeks ago, it has steadily corrected its gains, and is currently trading near the $1,826 level. In addition, as both the Slow Stochastic and the RSI on the 8-hour chart are providing bearish indications, it seems that platinum may drop further today. Forex traders involved with commodities like this can take advantage of this knowledge by going short on platinum now, and at a great entry price!
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| Posted: 03 Feb 2011 01:46 AM PST
A bullish movement in GBP/USD has pushed a number of technical indicators into the over-bought territory. As I will demonstrate below, the GBP/USD 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!
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| Silver Likely to Enter Downward Trend Posted: 02 Feb 2011 11:28 PM PST
After more than a week of bullish behavior, it looks like silver may have finally peaked, and is likely to see downward movement in the near future. Technical indicators are showing that the precious metal is in overbought territory, which typically means that a correction is on the horizon. Traders will want to take this opportunity to open sell positions at a great entry price in order to take advantage of the impending trend. We will be looking at the 8-hour chart for silver, provided by ForexYard. The technical indicators being examined are the Moving Average, Relative Strength Index (RSI) and Williams Percent Range. 1. As we can see, silver has dropped below its moving average. When an instrument reaches a level below its average, it is typically viewed as a sign to open sell positions. 2. The RSI is currently around the 80 line, in what is clearly overbought territory. Traders can treat this as another sign that downward pressure exists, and that a bearish move is likely to occur. 3. The Williams Percent Range is currently at the -20 level, which is viewed as the border for being in the overbought zone. The fact that the indicator is pointing down adds additional evidence to the possibility of a bearish move.
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| European Interest Rates on Tap Today Posted: 02 Feb 2011 11:00 PM PST
Rising market optimism seems to have driven a number of the higher-yielding, European currencies upward in value this week. The US dollar, on the other hand, has experienced a steady free-fall against the majority of its primary currency counterparts as investors move away from safe-haven assets. The rollercoaster ride of Middle East turmoil being experienced right now has caused a level of added volatility to the market. Yesterday's rise in agitation from fresh clashes between pro- and anti-Mubarak groups dragged downward on the resurgent EUR in late trading, helping the greenback recover a small amount of its recent losses. Here is a roundup of today's leading events: 12:45 GMT: EUR – Minimum Bid Rate The euro zone will be publishing its latest decision about its short-term interest rates. These figures have a direct correlation with currency values and thus tend to add volatility to the mid-European trading session. Rates are expected to be held steady at 1.00%, but the subsequent announcement by the European Central Bank (ECB) in its press conference at 13:30 GMT may inject a second round of volatility if its statements hint at future changes to monetary policy. 15:00 GMT: USD – ISM Non-Manufacturing PMI The Institute of Supply Management (ISM) is releasing its monthly Purchasing Managers' Index which measures business conditions among 400 surveyed manufacturers nationwide. Today's expectations are for a reading slightly higher than the previous months, which could continue to boost risk appetite in this week's trading, driving the USD lower around mid-day. |
| Posted: 02 Feb 2011 11:41 AM PST
This pair’s sustained upward movement has finally pushed its price into the over-bought territory on the 4-hour chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave. The next support levels are found at the 0.7770, 0.7745 and 0.7720 levels.
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