FOREXYARD: Forex News Blog

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USD is Bid to Begin this Week’s FX Trading Posted: 21 Nov 2011 04:43 AM PST The USD is up prior to the North American trading session despite a failure of the US super committee to come to an agreement. Pressure remains in the euro zone as Moody's said France's credit rating could be downgraded. With the recent USD strength some of the major currencies are now standing at significant technical levels. It is expected today that the US super committee will fail in its mission to agree on budget cuts and potential tax increases. The failure does not come as a surprise to most market participants given the inability of Congress to work together on almost anything these days. However, it does add an additional level of uncertainty in the already shaky financial markets. Despite the negative news the USD is bid to begin this week's FX trading as market players focus on events in Europe. This morning Moody's warned that France's Aaa credit rating could be reduced due to elevated borrowing costs and a poor growth outlook for the French economy. One month ago Moody's warned it could put France on a negative outlook within the next three months. This puts expectations of additional rating action on course for January. Risk sentiment continues to turn lower due to the European debt crisis with the German DAX down by 2.60%. Many of the major currency pairs are standing close to significant support levels. The GBP/USD is testing the 1.5630 support from the October 18th low. A break here could spur further declines towards the October low of 1.5270. The AUD/USD has retraced 61% of its October move and could fall back to the October 4th low at 0.9385. The NZD/USD has broken its long term rising trend line from May 2010. Read more forex trading news on our forex blog.

FX Weekly Technical Analysis – USD/CHF May Rise Back to Long Term Trend Line Posted: 21 Nov 2011 02:06 AM PST The USD continues to strengthen and shows little signs of slowing in this risk off environment. EUR/USD There is a bullish wedge pattern that has formed on the EUR/USD daily chart. The falling resistance line is off of the October high and the support line falls off the November 1st low. Resistance is found at 1.3615. A break here and the EUR/USD could test the November highs near 1.3850. Traders may be eyeing the October low of 1.3145 followed by a deeper move to the 2011 low of 1.2875. GBP/USD After breaking lower from the late October-mid November consolidation pattern the GBP/USD rose back to the previous support line at 1.5850 only to turn lower once again. This is a textbook retracement to a previously known support that has now turned into resistance. Support may be found at the October 18th low of 1.5630 followed by the October low of 1.5270. Resistance comes in at the top of the previous consolidation pattern at 1.6075. USD/JPY The slow decline of the USD/JPY back to its all-time low at 79.60 continues while the charts show very little support to prevent the move. Any attempt to bid the pair higher may encounter selling pressure at the November 15th high of 77.50 followed by the long term downtrend from the June 2007 high which comes in at 79.10. USD/CHF The rally from the late October low continues to gain steam as the pair approaches the October high of 0.9310. Both weekly and monthly stochastics continue to move higher. A break of 0.9310 will expose the 20-month moving average at 0.9450 followed by the February high of 0.9770. Support is off of the November 3rd low of 0.8760 which coincides with the 100-day moving average. While perhaps a bit extreme the USD/CHF may eventually rise to the falling trend line off of the 2003, 2008, and 2010 highs which comes in at 1.1200. Read more forex trading news on our forex blog.

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