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| EUR/CAD Uptrend Might be Near the End Posted: 21 Mar 2011 12:44 AM PDT
The volatile of the EUR/CAD pair continues to be affected by the volatile forex market. The last two weeks has seen a lot of bullish strength in the EUR/CAD pair. However, as I demonstrated below, it seems that the pair's bullish run may have run out of steam, and a bearish correction could be underway soon. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price. • Below is the daily chart of the EUR/CAD 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 a bearish cross, signaling that the next move may be in a downward direction. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. • Point 3: The Williams Percent Range signals further bearishness for the pair, which in turn indicates further downward pressure to occur anytime soon. EUR/CAD Daily Chart |
| Forex Market Stable despite Libyan Intervention Posted: 21 Mar 2011 12:00 AM PDT
At the start of this week, two forces appear to be converging on traders. The first is the impact of a G7 joint intervention on the forex market to lessen the Japanese yen's volatility. Japan appears to favor a stronger currency at the moment as the increased buying power allows them to purchase reconstruction materials at a better price. The second element is the commencement of UN-authorized aerial and naval strikes on Muammar Qaddafi's Libyan forces. By approving a limited campaign to stem Qaddafi's military retaliation on the rebels in Benghazi, the UN strikes have also created the conditions to shift traders in and out of riskier assets and also to drive oil prices higher through speculation of a supply disruption. Today's calendar events, while meaningful, will likely have less impact on the forex market than the news emerging from the above-listed global forces. Here is a round-up of today's events: 14:00 GMT: USD – Existing Home Sales The only meaningful data release from today will be a housing figure from the United States measuring the sale of already-existing homes. The report is a leading indicator of economic health and financial recovery as the growth of the housing market has a direct correlation with multiple factors of the American economic recovery. A stronger figure should help boost the USD in the short-term. 14:00 GMT: EUR – ECB President Trichet Speaks The European Central Bank (ECB) President, Jean-Claude Trichet, is due to testify on monetary policy before the European Parliament in Brussels today. These official testimonies are often the cause of intense volatility in EUR pairs as many investors try to speculate on future interest rate decisions based on his selection of words in describing the ECB's position on monetary policies. No predictions on effect can be expected, but traders should expect some price swings during his testimony. |
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