FOREXYARD: Forex News Blog |  |
- Daily Chart Indicates – The Price of Silver Is Expected To Continue To Rise
- Aussie Dollar Testing Resistance Level Prior to RBA Interest Rate Announcement
- AUD/USD- Technical Update
- Weekly Commodity Outlook
- AUD/USD Likely to Turn Bearish
- U.S. Pending Home Sales on Tap
| Daily Chart Indicates – The Price of Silver Is Expected To Continue To Rise Posted: 28 Feb 2011 11:26 AM PST After three weeks on which silver climbed about 8,000 pips, silver prices have stabilized, and for the past week have been trading around $33 an ounce. Nevertheless, there are currently several bullish signals on the 1-day chart, which indicate that another bullish movement might take place soon. Such a movement has potential to boost silver prices into a new record high. • The chart below is the spot-silver daily chart by ForexYard.       |
| Aussie Dollar Testing Resistance Level Prior to RBA Interest Rate Announcement Posted: 28 Feb 2011 06:18 AM PST A pause in rising Aussie interest rates has yet to cause a severe decline in the value of the Aussie dollar. The Reserve Bank of Australia has increased interest rates seven times since October of 2009 through November 2010. Currently the RBA Cash Rate stands at 4.75%. A majority of economists do not expect the RBA and Governor Glenn Stevens to increase interest rates tomorrow. Most estimates are for an adjustment to the Cash Rate to come in the end of the third quarter as the RBA will resist increasing the interest rate in order to promote higher rates of growth in Australia. Factors working against an expanding economy have been steps by China to tighten its grip on inflation and the recent geopolitical concerns in the Middle East. Also floods and a cyclone have severely damaged Queensland, limiting growth from the region. However, inflationary concerns remain strong. Rising growth from the mining sector has expectations for 0.6% first quarter growth. Wages have also steadily moved higher. Tomorrow's RBA comments addressing the timing of the next interest rate hike will be key to the AUD/USD. An increase in interest rate expectations will be a catalyst for the Aussie dollar. Despite the pause in rising Aussie interest rates, the AUD/USD has held its own and is encroaching on a key resistance level at 1.0200. A breach of this price will then test the pair's all-time high at 1.0250. Support for the pair is found at the rising trend line off the November low which comes in today at 1.0000. Further support levels can be found at last week's low of 0.9960, followed by the January low at 0.9800, and the November low at 0.9530.     |
| Posted: 28 Feb 2011 05:11 AM PST A bullish movement in AUD/USD has pushed a number of technical indicators into the over-bought territory. As I will demonstrate below, the AUD/USD may very well be heading for a reversal, as a bearish cross has taken place on the Slow Stochastic. In addition, the Williams Percent Range and Relative Strength Index indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. Don't forget your Stops and Limits!     |
| Posted: 28 Feb 2011 01:50 AM PST Crude oil Crude oil rose, capping the biggest weekly gain in two years, on concern that the turmoil in Libya will spread to Middle East petroleum producers. Grains jumped, driving a measure of raw materials up to a record. The standoff between an increasingly isolated Libyan strongman Muammar Gaddafi and rebel factions now in control of oil-rich eastern Libya has cut output in the world’s No. 12 crude exporter by at least 25%, or 400,000 barrels a day. Last week, oil jumped 14%, the most since late February 2009. The price has climbed 25% in the past 12 months. As for the week ahead, traders' attention should be devoted to all developments from the Middle East, as this is likely to continue to play a leading role in commodities trading. Traders should take under consideration that as long as the unrest in the region remain, crude prices might be further supported. Gold Spot gold inched up on Monday, heading for its best month since last August, boosted by fears over the deteriorating situation in Libya and spreading violence in the region, supported by rising oil prices. Spot gold inched up 0.3% to $1,416 an ounce, extending gains from the previous session.     |
| AUD/USD Likely to Turn Bearish Posted: 28 Feb 2011 12:09 AM PST After spending the last week in a prolonged upward trend, it appears that the AUD/USD pair may have finally hit a significant resistance line. Technical indicators are showing that the pair is likely to turn bearish in the near future, providing forex traders with an excellent opportunity to jump on this trend from the beginning. We will be looking at the 8-hour AUD/USD chart provided by ForexYard. The technical indicators being examined are the Williams Percent Range, Relative Strength Index and Stochastic Slow. 1. The Williams Percent Range is currently approaching the 0 level, indicating that the pair is well into the overbought zone. Typically this is a sign that a downward correction is forthcoming. 2. The Relative Strength Index, currently just below the 80 line, has just crossed into overbought territory. This lends further evidence to our theory that a bearish move is likely to occur. 3. Finally, the Stochastic Slow has formed a bearish cross. With both indicator lines pointing downward, it appears that a downward correction may occur very shortly.     |
| U.S. Pending Home Sales on Tap Posted: 27 Feb 2011 10:47 PM PST As we start a new week, the main issue that occupies the market remains the violence in Libya. The unrest has already compelled the nation to cut two thirds of its crude oil output. Despite the decrease in oil supplies, the market's real concern is that the turmoil which began in Tunisia, continued to Egypt and currently takes place in Libya will proceed to other countries in the Middle East and North Africa. In the case that violence spreads to other oil-producing countries in the region, $100 for a barrel of crude oil may turn out to be a bargain. Another "winner" of the ongoing violence in the Middle East is the Japanese yen. The yen is known as a safe-haven currency, and whenever uncertainty in the market grows, the Japanese currency tends to strengthen. Here are today's leading news events: • 13:30 GMT, Canadian Gross Domestic Product (GDP) – The GDP measures the change in value of all goods and services produced by the economy, and is considered to be the broadest measure of the economy's health. If the end result will beat forecast for a 0.3% rise, the CAD is likely to appreciate against its major rivals.     |
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