FOREXYARD: Forex News Blog | |
- Technical Tip – EUR/CHF Downtrend Resumes
- Buy Signals on Platinum
- EUR/USD Pushed Lower by Euro Zone Downgrades
- Dollar Gains as Equities Tumble
| Technical Tip – EUR/CHF Downtrend Resumes Posted: 11 Mar 2011 05:28 AM PST
Following a pullback in the trend, the EUR/CHF looks to continue its long term downtrend. After touching a new year low at 1.2700, the EUR/CHF climbed to a high of 1.3040, a level just below the current trend line. This trend line for the long term downtrend falls off of the November high. After a quick reversal at this level, the pair looks set to resume the downtrend. Technicals show further declines for the EUR/CHF are expected as the both weekly and daily stochastics are falling. Yesterday's solid close below the 1.2920 support also points to an extension of the downtrend. Support in the downtrend comes in at yesterday's low of 1.2825, followed by 1.2720 and 1.2700. On an extension of the downtrend the December low at 1.2400 would come into play. Should the pair move higher, resistance is found at 1.2920, and further gains would test 1.3040 and a resistance zone where the 200-day moving average and the February high are found between 1.3140 and 1.3200.
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| Posted: 11 Mar 2011 12:09 AM PST
The platinum prices are once again dropping, and it is currently traded around $1770 an ounce. However, there is much technical data that supports a bullish move for today as described below. Forex traders involved with commodities like this can take advantage of this knowledge by going long on platinum now, and at a great entry price! • The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD. • Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic shows a fresh bullish cross which may indicate an impending bullish movement. • 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. Platinum 8-Hour Chart |
| EUR/USD Pushed Lower by Euro Zone Downgrades Posted: 10 Mar 2011 11:38 PM PST
The EUR/USD appears to be recovering mildly after yesterday's sharp plummet. Moody's downgraded Greece and Spain's sovereign debt, pushing the euro to recent lows. The pair fell as low as 1.3780 yesterday before recovering back to the 1.3830 price level. If today's retail sales and consumer sentiment reports from the US come in as positive as expected, the US dollar could continue its bullishness against the EUR. Here is a roundup of today's leading events: 13:30 GMT: USD – Retail Sales and Core Retail Sales The American retail sales figures are set to be published today at 13:30 GMT and the news could help the USD extend recent bullish gains made against its European counterparts if the reports come as expected. The retail sales reports measure the level of demand for the nation's goods and therefore its currency. 14:55 GMT: USD – UoM Prelim Consumer Sentiment The University of Michigan (UoM) Prelim Consumer Sentiment report is a leading indicator of consumer sentiment and consumer spending. It surveys approximately 500 consumers regarding spending, outlook, and optimism regarding the future. If the report comes as expected, or higher, the USD could see some added bullishness before markets close for the weekend. |
| Dollar Gains as Equities Tumble Posted: 10 Mar 2011 01:47 PM PST
Traders flocked to the safety of the US dollar and the Swiss franc following reports of Saudi police firing on protesters in the Saudi Kingdom. In response, equities sold off and crude oil trimmed its losses in volatile trading. In the New York session, uncharacteristic volatility was felt with the dollar rising sharply versus the euro and the pound. The dollar built on its gains for the day after reports hit the wires of Saudi demonstrators being met by gunfire to break up protests. In response to the news, the EUR/USD fell to a fresh low at 1.3775 following the report. The Swiss franc gained versus the dollar and the euro while crude oil prices came off of their lows for the day and surged more than $2 in less than an hour. The Dow Jones Industrials Average had its worst day since August 2010, finishing down 1.9% and closing below 12,000 for the first time since January 31st, though the index did manage to finish off its lows. The NASDAQ was also down 1.8%. The Saudi report contributed to the negative tone of the trading day that began with a downgrade of Spanish sovereign debt by Moody's. Traders were also disappointed when the Bank of England decided not to raise interest rates, prompting traders to sell the pound. Market sentiment has quickly turned from the previous week where traders were focusing on higher yields in the Eurozone when euro was pushing to new highs. This week the European debt crisis has reemerged combined with geopolitical concerns in the Middle East which has caused a rush to the dollar as a safe haven play. Tomorrow traders will be eyeing the EU Economic Summit for progress by European finance ministers working towards a resolution of the European debt problem. US core retail sales and UofM Consumer Sentiment are also on tap. |
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