FOREXYARD: Forex News Blog | |
- Euro and Swiss Franc on the Rise
- USD May See Bullish Reversal Against NOK
- Rising Oil Prices Help NOK against Main Rivals
- GBP Rises on All Fronts
- AUD/NZD May See Bullish Reversal
| Euro and Swiss Franc on the Rise Posted: 06 Apr 2011 06:12 AM PDT
Both the euro and the Swiss franc were trading higher at the opening of New York trading after strong German factory orders boosted the euro and an unexpected rise in inflationary pressures had the franc rallying. The EUR/USD rose to a 5-month high following stronger German factory orders for the month of March, rising 2.4% from the previous month. The report had a significantly positive tone as the February numbers were revised higher to 3.1% from an original release of 2.9%. Economists forecasted the March report to rise only 0.6%. Following the data release the EUR/USD moved above the 1.4280 resistance level off of the October high. As tomorrow's ECB rate decision approaches the euro should continue to bring strong bids as markets are beginning to price in further interest rate increases. With that in mind, the next target for the euro sits at the January 2010 high at 1.4580. A move above this level would target the November 2009 high at 1.5140. Support comes in at the rising trend line off of the January 2011 low at 1.4120. The Swiss franc is on the rise after monthly CPI jumped 0.6% from the previous month. Economists had forecasted an increase of only 0.2%. While the appreciation of the franc has helped to tame some inflationary pressures, it appears higher commodity prices are also beginning to feed into rising prices in the basket of goods. Despite the recent dovish comments by the SNB, traders may begin to factor in a rate hike. The franc jumped after the data release and the USD/CHF traded as low as 0.9130, a level that coincides with the short term trend line from the pair's all-time low in March. A move below 0.9100 would put the bears back in the driver's seat and target the all-time low at 0.8904. This afternoon Ivey PMI is expected to show a decline from last month's survey. This may be due to the geopolitical turmoil last month as the conflicts in the Middle East combined with the disaster in Japan may have trimmed purchasing managers' expectations. However, the downtrend for the CAD continues to strengthen as the USD/CAD dipped below the 0.9600 level. Traders should be eyeing the all-time low at 0.9050. |
| USD May See Bullish Reversal Against NOK Posted: 06 Apr 2011 12:08 AM PDT
After tumbling throughout the last week, technical indicators are now showing that the USD/NOK may be due for an upward correction. As we will see, now may be a good time for traders to open long positions for some potentially significant profits. • Below is the daily chart of the USD/NOK currency pair, provided by Forexyard. • The technical indicators used are the Slow Stochastic and Williams Percent Range. • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal could take place in the near future. • Point 2: The Slow Stochastic has recently formed a bullish cross, signaling that the next move may be in the upward direction. • Point 3: The Williams Percent Range signals that the price of this pair is currently floating in the over-sold territory, indicating that upward pressure exists. |
| Rising Oil Prices Help NOK against Main Rivals Posted: 05 Apr 2011 11:45 PM PDT
The Norwegian krone had a very profitable week, as rising oil prices helped support the Scandinavian currency against its main currency rivals. Continued rumors of a Norwegian interest rate hike also helped support the currency. Against the US dollar, the krone has gone up well over 800 pips in the last week. Currently the USD/NOK is trading at 5.4550. The NOK faired even better against the euro, gaining close to 900 pips in the same amount of time. The EUR/NOK currently stands at 7.7815. The Swedish krona saw more mixed results over the past seven days. A strong US jobs report last week helped boost the USD/SEK close to 700 pips before the pair staged a reversal yesterday and dropped to its current level of 6.3090. Meanwhile, an anticipated euro-zone interest rate hike has helped the euro gain close to 700 pips against the krona since last week. Turning to the week ahead, the ongoing conflict in Libya is likely to keep the price of oil high, which could help the NOK. The SEK is likely to face a tougher time, as the anticipated hike in euro-zone interest rates is likely to send the krona plummeting against the euro. Traders will want to also pay attention to the main US economic indicators. Any positive American news will likely help the dollar against the Scandinavian currencies. |
| Posted: 05 Apr 2011 11:07 PM PDT
The GBP experienced one of its most bullish trading days in recent weeks on Tuesday. The GBP made significant gains against many of its most traded currency pairs, such as the EUR, JPY and USD. A stronger than expected UK services PMI brought strong bids to sterling. The survey rose 57.1 in March from 52.6 in February and the GBP/USD climbed to 1.6335 from 1.6116. The pair looks to be heading on its way to the next resistance level at 1.6400. Another developing trend is the recovery of gold. Since the dollar began dropping against the majors, gold has risen further and further. Currently traded around $1268 an ounce, if the dollar will continue to drop, gold could reach $1470 an ounce by the end of the day. Here are today's leading events: 8:30 GMT: GBP – Manufacturing Production This monthly report on the British manufacturing sector is a strong leading indicator of economic health and industrial expansion for the UK. Should this report come in as expected or higher, the British pound could see some added strength. 14:30 GMT: US Crude Oil Inventories The rise in the price of crude oil has been a headline feature of the market in recent weeks. This release may take precedence today as the price of oil has gained relevance in trading as of late. |
| AUD/NZD May See Bullish Reversal Posted: 05 Apr 2011 10:58 PM PDT
Over the last week and a half, the AUD/NZD has experienced a bearish trend that has brought the pair down over 300 pips. Technical indicators are now showing that the pair may be in store for a bullish correction in the near future, providing forex traders with an excellent opportunity to open up long positions for some potentially significant profits. We will be looking at the daily chart for AUD/NZD, provided by Forexyard. The technical indicators being examined are the Relative Strength Index, Stochastic Slow and Williams Percent Range. 1. The Relative Strength Index has recently crossed into the oversold zone, in what is typically a sign that a reversal is likely to take place. Furthermore, it appears that the indicator is beginning to angle upward in a clear indication that the pair may turn bullish in the near future. 2. The Stochastic Slow has recently formed a bullish cross. Traders can take this as a clear sign that a trend reversal may be imminent. 3. Finally, the Williams Percent Range has crossed well below the -80 level, in what is the clearest sign yet that the pair is in oversold territory. Traders will want to pay attention to this indicator. When it begins to turn upward, it will be a likely sign of impending bullish behavior.
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