FOREXYARD: Forex News Blog

---

CHF Likely to Gain on Yen Posted: 27 Oct 2010 05:36 AM PDT The Swiss franc has been steadily losing ground to the Japanese yen for the last several weeks. Since October 7th, the CHF/JPY has tumbled some 350 pips. It now appears that the bearish trend may be coming to an end. As we will illustrate through a number of technical indicators, the franc may be set to reverse its current direction over the next few days. We will be looking at the daily chart for the CHF/JPY pair, provided by Forexyard. The technical indicators being used are the Williams Percent Range, Relative Strength Index (RSI) and Stochastic Slow. 1. The Williams Percent Range is currently right around the -90 level. Typically, anything below -80 is considered to be in oversold territory. Traders can take this as a clear signal that upward momentum is imminent. 2. The RSI is currently well below the support line, in yet another indication that the pair is in the oversold region. Traders will want to pay attention to this signal. When it starts pointing upward, the pair is likely to see bullish momentum. 3. In what may be the clearest sign that the pair will enter into an upward trend, the Stochastic Slow has formed a bullish cross below the support line. Going long on the CHF may turn out to be a profitable choice once the upward momentum begins.

U.S. Durable Goods Orders on Tap Posted: 26 Oct 2010 11:15 PM PDT The U.S. dollar entered a bullish trend yesterday for the first time in three months. This was due to speculation that the Federal Reserve will increase debt purchases. The market has reacted positively to the speculations, largely because they feel U.S. inflation will go up as a result. Economists agree that this is a necessary step by the Fed, and that it will have positive effects on the economy. This was enough the support the dollar yesterday. However, this might have little effect on today's trading, due to the large amount of significant economic releases from all over the world. Here are today's leading economic indicators: • 12:30 GMT, U.S. Core Durable Goods – This report measures the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, which tend to distort the underlying trend. If the end result will beat analyst’s expectations for a 0.4% rise, the dollar might rise further. • 14:00 GMT, U.S. New Home Sales – This is one of the most significant housing sector indicators in the U.S. and thus tends to have a large impact on the market. Analysts have forecasted that 301,000 new homes were sold on September. Such a result will mark the best figures in 3 months, and is likely to support the dollar. • 20:00 GMT, New Zealand Official Cash Rate- This is in fact New Zealand's interest rates announcement for the following month. Current Expectations are that the Reserve Bank of New Zealand (RBNZ) will leave rates at 3.00%. However, if the RBNZ will surprise and decide to hike rates, the NZD might be boosted as a result.

You are subscribed to email updates from Forex Trading Education : Forex Trading Blog by FOREXYARD To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610