FOREXYARD: Forex News Blog

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• GBP/CAD- Technical Update
• EUR/CAD May Rebound Today
• Pound Comes Into Focus Today

GBP/CAD- Technical Update Posted: 10 Mar 2011 01:56 AM PST This pair’s indicators appear to be revealing an upward corrective signal. The 8 hour chart Stochastic (slow) show impending and fresh bullish crosses, respectively, which highlights the impending upward movement of this pair. The Relative Strength Index also show that the price of this cross currently floats in the oversold territory, supporting the notion that forex traders may wish to go long on this pair today to catch the impending corrective swing from the bearish spike experienced these past several days.

EUR/CAD May Rebound Today Posted: 10 Mar 2011 12:10 AM PST The pair has recorded much bearish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 8-hour chart signals that a bullish reversal is imminent. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price. • The technical indicators used are the Slow Stochastic, Williams Percent Range, and Relative Strength Index (RSI). • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction. • Point 3: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-sold territory, indicating upward pressure. • Point 4: Williams Percent Range also supports the upward direction. • The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue. EUR/CAD-8 hour Chart

Pound Comes Into Focus Today Posted: 09 Mar 2011 11:27 PM PST With the release of British interest rates this morning, markets will be focusing on the BOE and how the bank addresses inflation. Today's market events: GBP – Manufacturing Production m/m – 09:30 GMTExpectations: 0.8%. Previous: -0.1%. Manufacturing data has been fairly robust for Britain with the services sector failing to meet expectations. More of the same may be expected today. Technically, multiple failures by the GBP/USD to move above the 1.6340 level does not bode well for the pair. Divergence between price and momentum is also showing up on the daily chart. Support is found at 1.6025 and 1.5960. GBP – Official Bank Rate – 12:00 GMT Expectations: 0.50%. Previous: 0.50%. Forecasts are for the BOE to hold interest rates steady at the current level of 0.50% with no adjustment to the 200B Asset Purchase Facility. But some economists expect a 1 in 5 chance of the BOE surprising the market today with an interest rate hike. USD – Unemployment Claims – 13:30 GMT Expectations: 375K. Previous: 378K. If last week's jobs report was any indicator of the US employment recovery, then today's weekly unemployment claims should also show improvement which will in turn support the dollar. CAD – Trade Balance – 13:30 GMT Expectations: 2.5B. Previous: 3 3.0B The Canadian dollar has been one of the best performing currencies the past two weeks, largely due to rising crude oil prices. Yesterday the pair fell below the psychological 0.9700 support level and currently stands at its lowest level since November 2007. A lack of support on the charts is apparent and thus the pair could continue its decent. An initial target is the November 2007 low at 0.9054.

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