FOREXYARD: Forex News Blog | |
- US Unemployment Claims Set to Create Market Volatility on Thursday
- Crude Oil Likely to See Downward Correction
- Potential Reversal for NZD/USD
- GBP/JPY Uptrend might be in the End
- GBP Looks to Continue Gains
| US Unemployment Claims Set to Create Market Volatility on Thursday Posted: 16 Feb 2011 07:07 AM PST
The US dollar has largely benefited from two weeks straight of better than expected Unemployment Claims figures. In addition, generally favorable data out of the US has led to substantial gains for the greenback against many of its main currency counterparts, including the euro and yen. Tomorrow, the dollar’s upward movement may come to an end following the release of the latest unemployment figure. Analysts are predicting the number of American’s seeking first time jobless insurance to increase to 401K from last week’s figure of 383K. The effect tomorrow’s news could have on the dollar differs depending on who you ask. On the one hand, with euro-zone debt worries once again in the news, as well as a grim UK economic assessment from the BOE Governor released earlier today, investors may be hesitant to revert back to the euro even if poor US unemployment news is released. On the other hand, negative data out of the US typically results in a boost for the dollar’s main currency rivals, including the euro and UK pound. Traders will have to wait and see if tomorrow’s news causes the dollar to break its recent bullish streak. As always, traders should remember that the US unemployment data is notoriously hard to predict. Last week’s figure came in well below expectations and gave the USD a surprising boost to close out the week. Whatever happens, market volatility is assured, so traders will want to be prepared for every possible outcome. |
| Crude Oil Likely to See Downward Correction Posted: 16 Feb 2011 02:20 AM PST
Crude oil prices rose significantly in the last few hours and peaked at $88.19 a barrel. And now, there appears to be a recent bearish cross on the 2-hour chart's Stochastic (slow), highlighting significant downward momentum building on this commodity's price. In addition, the Williams Percent Range 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 crude oil, which appears to be imminent.
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| Potential Reversal for NZD/USD Posted: 16 Feb 2011 12:54 AM PST
The NZD has dropped significantly versus the USD in the past 2 weeks, and it is currently traded around 0.7540. And now as evident in the data below, the daily chart is giving bullish signals, indicating that NZD/USD 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 NZD/USD currency pair. • The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic. • Point 1: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. • Point 3: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure. NZD/USD Daily Chart |
| GBP/JPY Uptrend might be in the End Posted: 16 Feb 2011 12:11 AM PST
In the last three weeks trading, the GBP/JPY experienced much bullishness, as it stands now at 135.40. However as I demonstrate below, it seems that the pair’s bullish run may have run of steam, and a bearish correction could be underway soon. 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. • Below is the 8-hour chart of the GBP/JPY currency pair. • The technical indicators that are used are the William Percent Range, 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 impendin bearish cross, signaling that the next move may be in a downward direction. • Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. • Point 4: Williams Percent Range also supports the upward direction. GBP/JPY 8-Hour Chart |
| Posted: 15 Feb 2011 11:33 PM PST
Yesterday's inflationary data from the UK should be enough to convince the market of a 25 bp rate increase by BOE in the near term, ultimately supporting the pound. Today's Market Events: GBP – BOE Inflation Report-10:30 GMT The BOE sent its fifth consecutive letter to the Chancellor of the Exchequer on why inflation was higher than expected. BOE Governor Mervyin King will explain the position of the BOE today. Further gains should be seen in the pound as traders anticipate a tightening of UK monetary policy in response to higher than expected inflation. Yesterday the GBP/JPY broke out higher from its 5-month range trading. Initial targets should be the August high at 137.80. Support is found at 135.00, 134.20 and 133.00. USD – Building Permits – 13:30 GMT Expectations: 0.57M. Previous: 0.63M. Since November US economic data has turned a corner as the economy begins to pick up steam. Employment and housing are two areas that have lagged. As such, this data piece may be a focal point as the New York trading gets underway. USD – FOMC Meeting Minutes – 19:00 GMT The meeting minutes for the Fed offers insight on who approved monetary policy and who dissented while shedding light on the QE II program. Oil – Crude Oil Inventories – 15:30 GMT Expectations: 1.8M. Previous: 1.9M. Yesterday's low of $83.30 and $80.25 should serve as support levels with resistance found at $89.40 and $93.00. |
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