FOREXYARD: Forex News Blog

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• Gold Trading Update
• USD/CHF Provides Signs for Reversal
• USD/JPY- Bullish Signal
• Silver Looks to Move Above All-Time High

Gold Trading Update Posted: 30 Dec 2010 01:49 AM PST The gold climbed to a high of $1414 an ounce, compared to the low of USD 1372 an ounce in the end of last week, supported by Euro's recovery from a three week low against the US Dollar. At this period trade is thin as most of funds and banks are out of the market. Little activity is expected during the break. The markets will resume properly in the first week of January and investors expect gold to climb around $1450. an ounce. Fears about Euro zone's peripheral economies debt crisis still exist and are not going to vanish easily. These concerns make people to feel better when they hold a tangible asset. • The next support levels are located at the $1410, $1400 and $1390 levels. • The next resistance levels are found at the $1420, $1435 and $1450 levels.

USD/CHF Provides Signs for Reversal Posted: 30 Dec 2010 01:44 AM PST The USD has dropped significantly versus the CHF in the past 2 weeks, and it is currently traded around 0.9375. And now as evident in the data, the 4-hour chart is giving bullish signals, indicating that USD/CHF pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. • The next support levels are located at the 0.9345, 0.9315 and $0.9295 levels. • The next resistance levels are found at the 0.9405, 0.9435 and 0.9470 levels. USD/CHF 4-Hour Chart

USD/JPY- Bullish Signal Posted: 29 Dec 2010 11:55 PM PST The USD/JPY pair saw quite a consistent bearish trend during the past few weeks. The pair lost about 300 pips since December 16th, falling from the 84.40 level to the 81.40 level today. However, after the pair failed to breach through the 81.40 level it began correcting itself, and is now trading near the 81.60 level. The bullish correction is likely to extend today, with potential to reach the 82.00 level. • The chart below is the 4-hour chart USD/JPY by ForexYard. There is a very distinct bearish channel formed on the 4-hour chart, and the pair is now floating in its bottom. • The pair recently reached as high as the 84.20 level, yet this appears to have initiated a mild bearish correction. • The Slow Stochastic has just completed a bullish cross above the 20-line, indicating that a bullish correction might take place. • In addition, The RSI signals that the price of this pair currently floats in the over-sold territory, indicating upward pressure. • The next support levels are located at the 81.20, 80.80 and 80.50 levels. • The next resistance levels are found at the 81.90, 82.30 and 82.70 levels. USD/JPY 4-Hour Chart

Silver Looks to Move Above All-Time High Posted: 29 Dec 2010 08:47 PM PST The gains in spot silver prices continue to increase with today's price breaching the all-time high of $30.69. When the price of a commodity makes a new high, this sends a very strong message that something fundamental is occurring in the market. One school of thought is a recovery in the global economy. As the economies of the developed nations of world begin to grow, such as the US, Great Britain, China, and Japan, demand for raw materials have increased along with industrial consumption numbers. Traders can take advantage of the rising prices by going long on spot silver with stops placed below the rising trend line that extends from the late August low. Today's Market Events: USD – Weekly Unemployment Claims – 13:30 GMT Expected 416k. Previous: 420k. An improving unemployment picture bodes well for the US economy and should help to strengthen the dollar. Gains in the EUR/USD should be sold into with support at the 50% retracement level from the June to November move at 1.3070. Resistance follows at yesterday's high at 1.3275 and the 38.2% Fib retracement at 1.3360. USD – Pending Home Sales – 15:00 GMT Expected: 1.8%. Previous: 10.4%. It will be tough to top the number of November's pending home sales but US data has typically been strong in the 4th quarter with the exception of the November non-farm payroll numbers. Strong US data could cap the AUD/USD gains at the resistance level of 1.0181. Oil – Crude Oil Inventory Report – 16:00 Expected: -2.8m. Previous: -5.3m. Crude oil prices have a strong bid behind them as shown by their resilience to trade above the $90 level. Traders may be targeting the psychological $100 level.

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FOREXYARD: Forex News Blog

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• Gold Trades Near $1410 an Ounce
• Sell Signals on Silver
• Crude Oil Prices Set to Decrease
• EUR Likely to Move Up Against Swiss Franc
• USD and CHF Bullish ahead of New Year Celebration

Gold Trades Near $1410 an Ounce Posted: 29 Dec 2010 05:38 AM PST Gold prices rose significantly in the last week and peaked at $1408 an ounce. However, the 4 hour chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders can take advantage of this imminent upward movement by entering long positions at an excellent entry price. • Below is the 4-hour chart for gold by ForexYard. • The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range. • Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure. • Point 4: Williams Percent Range also supports the downward direction.

Sell Signals on Silver Posted: 29 Dec 2010 03:19 AM PST Silver’s sustained upward movement has finally pushed its price into the over-bought territory on the 4-hour chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. 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.

Crude Oil Prices Set to Decrease Posted: 29 Dec 2010 03:15 AM PST Crude oil prices have recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, the daily chart’s Stochastic Slow signals that a bearish reversal is imminent. A downward trend today is also supported by relative Strength Index. Forex traders involved with commodities like this can take advantage of this knowledge by going short on Crude Oil now, and at a great entry price!

EUR Likely to Move Up Against Swiss Franc Posted: 28 Dec 2010 11:32 PM PST In a day where most currency pairs are trading flat ahead of the New Year’s holiday, traders have a unique opportunity to jump on an impending trend with the EUR/CHF pair. While the last day has seen the pair drop some 165 pips, technical indicators are now showing clear signs of an imminent upward correction. We will be looking at the 4-hour EUR/CHF chart, provided by ForexYard. The technical indicators being examined are the Relative Strength Index (RSI), Stochastic Slow and Williams Percent Range. 1. The RSI is currently right on the border of being in oversold territory. This typically means that bullish pressure exists and that an upward correction may occur in the near future. 2. As we can see, the Stochastic Slow has formed a bullish cross, meaning that a correction is likely to take place. 3. Finally, the Williams Percent Range is currently just below the -80 level. This is typically viewed as the cutoff for being in oversold territory. Traders can take this as a sign that the pair should see bullish momentum.

USD and CHF Bullish ahead of New Year Celebration Posted: 28 Dec 2010 10:00 PM PST After a modest uptick against most of its currency rivals yesterday, the US dollar appears to be running favorable as low liquidity and market timidity factor into year-end trading. The Swiss franc continues to run bullish against the majors as the notion of becoming the dominant safe-haven currency from debt concerns transforms the value of the Swissie prior to the New Year celebration. Here is a roundup of today's main economic events: 9:00 GMT: EUR – M3 Money Supply The M3 report measures the change in availability of euros in circulation. An increasing money supply late in the economic cycle tends to represent inflationary growth, whereas an expanded money supply earlier in the cycle typically signifies a growth in spending and investment. With European debt concerns still looming, a positive growth factor at either point in the cycle will be bullish for the EUR. 9:30 GMT: CHF – KOF Economic Barometer The Konjunkturbarometer (KOF) report is a composite index based on 12 economic factors relating to business conditions, consumer and banking confidence, housing, and the general economic outlook. It is designed to forecast the overall direction of the Swiss economy during the 6 months immediately following. A better-than-expected reading tends to drive the Swiss franc (CHF) higher against its currency rivals.

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