FOREXYARD: Forex News Blog

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Silver Likely to See Bearish Move Posted: 23 Mar 2011 01:04 AM PDT Following the steep increase in the price of silver in recent days, it appears that the precious metal may be due for a downward correction. Technical signals are indicating that bearish movement may be impending, which could bring prices down to the 34.50 level. We will be analyzing the 8-hour silver chart, provided by Forexyard. The technical indicators being looked at are the Relative Strength Index, Stochastic Slow and Williams Percent Range. 1. The Relative Strength Index is currently at the 80 level, well in the overbought zone. This is typically a sign that a bearish move is likely to occur in the near future. 2. A bearish cross has formed on the Slow Stochastic, indicating a downward correction may take place. 3. Finally, the Williams Percent Range remains well in overbought territory. This can be taken as a sign that the price of silver is likely to drop, giving traders an excellent opportunity to open sell positions for a potentially significant profit.

Rising CPI Brings Forward Interest Rate Expectations in Britain Posted: 22 Mar 2011 11:16 PM PDT Yesterday's higher than expected inflationary data had traders buying the pound as the market moves up its expectations for an interest rate increase from the Bank of England. Today the spotlight will once again be focused on the Britain with budget numbers due out as well as the BOE voting record from the previous monetary policy meeting. Today's major news events: GBP – MPC Meeting Minutes – 10:30 GMT Expectations: 3-0-6. Previous: 3-0-6 A hawkish tone from the BOE will only help to add to yesterday's gains for the pound. GBP/USD resistance is found at 1.6400 and 1.6460. GBP – Annual Budget Release – 13:30 GMT Chancellor of the Exchequer George Osborne will release the UK budget that may show increased fiscal responsibility by the UK government which could be a further catalyst for the pound. USD – New Home Sales – 14:00 GMT Expectations: 291K. Previous: 284K US housing data have begun to pick up over the last three months. This could provide the greenback with some much needed support. The USD/CAD could continue to rise to the 0.9960 level. Oil – Crude Oil Inventories Expectations: 2.0M. Previous: 1.7M A larger than expected drawdown in crude oil stocks will add further fuel to the fire as Middle East tensions are driving the price of crude oil higher. Resistance for the commodity is found at $106.90. Support is located near $100 and $96.20.

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