Month: July 2009

Source: ForexYard

The Yen slid against its major currency counterparts and the Dollar posted mild losses against all currency pairs except the Yen following a rally in global equity markets. The rally prompted investors to turn to higher yielding riskier assets and away from the safety of the USD and JPY. With risk appetite the main focus for today’s trading and while market conditions remain mixed, traders should follow the vital economic data to be released today from the U.S and Europe as this will provide direction to the market for today’s trading.

Economic News

USD – Dollar Plummets as Wall Street Rallies

The Dollar plummeted on Monday against most of its major currency pairs. The Wall Street rally was initiated by positive comments from analyst Meredith Whitney about the financial Sector. She made her comments on CNBC (business channel), stating that banks shares will make short-term gains of 15%, and financial institutions will post better-than-expected results in the coming weeks. From this point on, Wall Street rallied, which led to risk-taking in U.S. equities and commodities. The result was a weak USD throughout yesterday’s trading.

The USD lost 50 pips against the EUR to close at the 1.3974 level yesterday. Much of this behavior was due to investors’ risk-taking. The GBP/USD climbed by a dramatic 120 pips to the 1.6244 level. This was partially due to the recent bottoming out of the British housing market. However, the greenback rose 50 pips against the JPY, marking the first daily rise in the pair for 2 weeks. This came about as forex traders dumped the Yen as it has been the number 1 safe-haven currency as of late.

Looking ahead to today, there is much vital data expected to come out of the U.S. economy. These are the Core Retail Sales, PPI (Producer Price Index), and Retail Sales, which are all set to be published at 12:30 GMT. If the results are worse than forecasts then we may see another day of USD bearishness. However, equal to or better-than-expected results may lead to a bullish Dollar going into mid-week trading.

EUR – EUR/USD Climbs Ahead of Economic Sentiment Publication

The EUR climbed against the Dollar on Monday ahead of the German ZEW Economic publication today. This is important as it is a leading measure of the health of the German and Euro-Zone economies. Analysts predict the figure to be 48.0, notably higher than the previous figure of 44.8. This helped the EUR climb against the USD yesterday. This pair also rose due to the equities rally in the U.S. and Euro-Zone. The result of this was traders dropping the USD in many cases for higher-yielding currencies, such as the EUR and GBP.

The EUR/USD climbed by 50 pips to the 1.3974 level, as the EUR recorded a bullish trading session against a number of its main currency pairs. The EUR/GBP rate, however, slipped 35 pips to 0.8601. This comes out as Britain saw sentiment in her housing sector at its highest since late 2007. The EUR saw its first gain against the JPY in several days, as the pair climbed by 120 pips to the 129.98 level due to traders buying into higher-yielding currencies. Additionally, traders realized that this pair had been undervalued in the past 2 weeks.

Today, there is much economic news coming out of both Britain and the Euro-Zone. At 08:30 GMT there is the release of the CPI (Consumer Price Index) and RPI (Retail Price Index) from Britain. At 09:00 GMT we can expect the publication of German ZEW Economic Sentiment and Industrial Production figures from the Euro-Zone. Today’s data is vital in determining the levels of the EUR and GBP against their main currency crosses as Tuesday’s trading gets under way.

JPY – Yen Collapses Against the Majors

The Yen collapse against the major currencies in Monday’s trading session. This came about as global stock markets rallied, led by banking stocks. In turn, traders dropped the Yen for higher-yielding assets. This included currencies such as the GBP and EUR, and commodities such as Crude Oil. The Japanese currency also fell due to Japanese analysts stating that a downward correction for the Yen will soon be under way.

The USD/JPY slid about 50 pips to 92.89. The GBP/JPY pair rose dramatically by 180 pips to 150.89. The Yen’s bearish behavior may continue into today’s trading, as Monday’s pessimistic Revised Industrial Production figures may put additional downward pressure on the JPY. Today, the Yen is expected to take the backseat due to a lack of key economic releases. Therefore, expect much market volatility to dominate JPY trading.

Crude Oil – Crude Oil Rebounds on Positive Sentiment

Crude Oil rebounded above $60 a Barrel yesterday on positive economic sentiment led by the U.S. The price of Crude benefited yesterday, as traders bought into risky assets. Additionally, the weak USD yesterday predictably led to bullish Crude prices. The other reasons for the bullish prices were due to Wall Street’s rally and U.S Treasury Secretary Timothy Geithner stating that the U.S. recession will be over within a few months.

Looking to today, there are 2 things that may drive up the Crude prices above the $60.50 mark. These include a weak Dollar, as the price of black gold is in Dollar’s; a bearish Dollar usually leads to bullish Oil prices. Also, good economic figures from the U.S. could increase risk-taking, and lead to higher Crude prices as a result. The question now is can Crude Oil extend this long awaited daily gain?

Technical News

EUR/USD

The daily chart shows that the pair is currently range-trading within a restricted price range. However, as the RSI on the daily chart has dropped beneath the 70 line, it appears that bearish momentum might be arising. Going short with tight stops could be the right choice today

GBP/USD

The 4 hour chart is showing mixed signals with its Slow Stochastic fluctuating at the neutral territory. However, the hourly chart’s RSI is already floating in the overbought territory indicating that a bearish correction might take place in the nearest future. When the downwards breach occurs, going short with tight stops appears to be preferable strategy

USD/JPY

The bullish trend is loosing its steam and the pair seems to consolidate around the 93 level. The hourly chart’s RSI is already floating in an overbought territory suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Going short with tight stops appears to be preferable strategy.

USD/CHF

The pair has been quite choppy in the past two days yet no clear direction was seen. The 4 hour chart is showing bullish signals as the daily chart is still quite bearish. Traders advised to wait for a clearer signal on the hourlies before entering the market.

The Wild Card – EUR/GBP

The pair is in the midst of a very strong bearish correction move, and seems to have more steam in it. The Slow Stochastic oscillator on the1 hour chart is also providing downward signal. This is a great opportunity for forex traders to join a very promising bearish correction.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

With perpetually low interest rates, carry trade plays a big part in Japan’s exchange rate. Carry trading is a strategy in which an investor sells a certain currency with a relatively low interest rate, typically the JPY and currently also the USD, and uses the funds to purchase another higher yielding currency. The higher the interest rates in a country the higher the yield of its assets. A trader using this strategy attempts to capture the difference between the rates.

After the fall of Lehman Brothers and the onset of the financial crisis, carry trades have practically disappeared as risk aversion ruled the markets and traders turned to the safe haven status of the Japanese and American currencies. However, with an increasing influx of optimistic economic data in the past few months carry trades have started to come back into the picture with traders betting on an eminent economic recovery which prompted them to search for higher yielding assets, pushing them to purchase riskier currencies, financed with the Yen.

The recent return to risk aversion following the worse than expected employment data from the U.S has pushed investors back to the safety of the Yen as global stock markets fell and traders fled from carry trade activity. This played a role in Yen’s recent rally as unwinding of carry trades means that traders now need to liquidate their investments of the higher yielding assets and purchase Yen in order to repay their Yen denominated loans.

Currently market conditions continue to be mixed and directionless, with the weak employment data bursting the quick global recovery bubble. In the current market state it is unlikely carry trades will return as long as the economic fundamentals remain shaky.

By GCI Fx Research

€

The euro gained ground vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4000 figure and was supported around the $1.3895 level.   European Central Bank President Trichet defended the central bank’s monetary policymaking during the ongoing economic crisis, reporting its toolkit “is up to the challenge.”  Trichet conceded, however, that the eurozone’s economy will continue to contract through the end of 2009 with economic growth returning by the middle of 2010.  ECB member Bonello said the ECB is “satisfied” with current policy settings, leading to expectations the ECB will not reduce rates further or expand its asset purchase program anytime soon.  Bonello added “there are some signs of bottoming out” but said it is “premature to talk of a sustainable recovery.”  The ECB recently initiated a policy to purchase €60 billion in covered bonds to help keep market interest rates low and provide liquidity to the financial market.  In U.S. news, traders are keeping a close eye on CIT Group, a troubled U.S. financial giant that is seeking access to the U.S. Treasury’s Temporary Liquidity Guarantee Program so that its debt issuance can be subsidized with a FDIC guarantee.  Federal Reserve Chairman Bernanke was quoted as saying the U.S. may experience a jobless recovery.  Bernanke is expected to testify before Congress next week and may explain how the central bank will begin to unwind its massive monetary stimuli.  Data to be released in the U.S. tomorrow include the June producer price index with most forecasts predicting an increase in the monthly reading.    Euro bids are cited around the US$ 1.3435 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥93.00 figure and was supported around the ¥91.75 level.  Democratic Party of Japan official Nakagawa reported Japan should diversify its foreign reserves and said foreign exchange intervention during periods of volatility is understandable.  The DPJ appears well-seated to give the LDP Aso government a serious challenge at the mandatory general election that must be held by mid-September.  Data released in Japan today saw June consumer sentiment improve to 37.6 from 35.7 in May while May revised industrial output was up 5.7% m/m to 79.1.  Traders await any indication Bank of Japan may extend its emergency quantitative easing measures through the end of September.  The Nikkei 225 stock index lost 2.55% to close at ¥9,050.33.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥130.20 level and was supported around the ¥128.00 figure.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥150.95 level while the Swiss franc moved higher vis-à-vis the yen and tested bids around the ¥85.95 level. In Chinese news, the U.S. dollar strengthened vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8318 in the over-the-counter market, up from CNY 6.8317.

Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By Fast Brokers – Gold is bouncing between our 2nd tier uptrend and 3rd tier downtrend lines as volume continues to wane after July 8th’s large pullback.  We haven’t noticed any considerable volume on the buy-side since, telling us the bears are still in the driver’s seat.  However, the precious metal is hesitating as it flirts with the concept of retesting the psychological $900/oz area.  Considering $900/oz is a critical level psychologically, the $890-$900/oz zone should prove to be a tough near-term battle-zone should it be breached.  Meanwhile, all eyes are on the S&P futures and their ability to stay above May 18 lows with investors eagerly awaiting the heat of the 2nd quarter earnings season.  Additionally, crude is wrestling with its own psychological $58-$60/bbl zone.  Considering gold is positive correlated with both the S&P and crude futures, all three invest investment vehicles are sending a clear message that the overall market is at a psychological pivot point.  Though present momentum remains to the downside, a surprisingly positive earnings season could turn the tide.  On the other hand, a disappointing earnings season would only exacerbate the downward pressure on price and likely knock out gold’s $900/oz psychological level.  With gold getting squeezed between our 2nd tier uptrend and 3rd tier downtrend lines, something’s gotta give.  If the 2nd tier uptrend line gives way, a retest of $900/oz become much more likely.

Present Price: $909.15/oz

Resistances: $910.84/oz, $914/25/oz, $915.61/oz, $918.49/oz, $920.02/oz

Supports: $908.58/oz, $906.34/oz, $903.72/oz, $901.58/oz, $900.08/oz

Psychological: $900/oz

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The USD/JPY is trying to stabilize today after its key selloff on July 8th.  As we noted before, the USD/JPY darted below our 1st tier uptrend line as it collided with our 1st tier downtrend line, normally a negative statement regarding trend.  Though the USD/JPY’s volume shot up from recent levels, the volume registered on July 8th didn’t reach a height you’d expect to see on a key movement.  This tells us one of two things, either there is another large confirming near-term selloff approaching, or investors aren’t prepared to test the murky waters of January lows.  We still believe July 8th’s downturn was a statement, possibly a warning shot of what’s to come.  While we expect the USD/JPY to retest the psychological 90 level at some point, 88-90 should act as a worthy cushion to the downside.  Therefore, bulls shouldn’t overly concerned at this point.  After all, 2008/2009 lows are very important psychologically and economically, so it would take a huge negative wave to wash away the USD/JPY’s defenses.  As for the upside, getting back above our 1st tier trend lines would be an encouraging development and could alter our negative outlook.

Last Tuesday Japan reported discouraging Core Machinery Orders and Current Account data.  These data points signal the Japanese economy continues to feel pressure from declining demand for its manufactured goods both at home and abroad.  Lower Japanese corporate earnings and higher unemployment are pinching domestic demand.  The discouraging Current Account number makes investors worry that international consumption is not picking up as quickly as the improvement in global consumer sentiment data may suggest.  An appreciating Yen should only make matters worse, so a declaration of the downtrend by the USD/JPY could be very bad news for Japan.

Investors will be keeping a close watch on U.S. corporate earnings and economic data releases this week.  Any significant disappointments on the earnings or data front could result in a sizable pullback in the S&P futures.  Considering the USD/JPY is positively correlated with U.S. equities, this could result in the retest of 90 as we mentioned before.

Present Price: 92.31.

Resistances: 92.57, 93.32, 93.76, 94.45, 94.99

Supports:  91.96, 91.50, 91.03, 90.28, 89.86

Psychological: 90, 95

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The Cable appears to be bottoming out above July 8th lows as the currency pair avoids another retest of the psychological 1.60 level.  However, as we anticipated, the optimism surrounding the BoE holding its level of QE steady was short-lived.  Thursday’s rally in the GBP/USD stalled after the currency pair failed to receive noteworthy volume on the buy-side.  As a result, the Cable has dipped back into risky territory with our 2nd and 3rd tier downtrend lines and July highs bearing overhead.  Technical keys for the Cable to the downside will be staying above the psychological 1.60 level, July lows, and our 1st tier uptrend line.  Regardless of the downward pressure in the Cable, the 1.58-1.61 area should continue to be a heavy-handed trading zone.  Therefore, it would likely take a large pullback couple with abnormally high volume to break the Cable’s near-term support system.

The Pound is experiencing broad-based weakness after Britain’s Halifax HPI and manufacturing production data points disappointed analysts.  Last week’s data continues a theme of economic setbacks in Britain after around six weeks of solid data releases from the U.K.  Therefore, it seems the tables have turned, and the EUR/GBP is finally building some substantial momentum to the upside.  However, despite the negative weight dragging down on the Cable, we wouldn’t be surprised to witness further stabilization.

News is a little light today, and investors are likely to take a deep breath before tomorrow’s large dose of economic data.  Britain will begin with some important housing numbers late Monday, followed by the CPI and RPI early Tuesday.  Investors are expecting the CPI to continue its contraction with a reading of 1.8%.  Any number below 1.8% could spark the fear of deflation, resulting in a sizable pullback in the GBP/USD.  In addition from the British data points, the U.S. will release retail sales, PPI, and business inventories on Tuesday.  We also can’t forget that the 2nd quarter earnings season is just getting started.  The earnings reports should be market moves if the numbers surprise in either direction.  As a result, there should be a strong correlation between the Cable and U.S. equities for the near-term.

Present Price: 1.6130

Resistances: 1.6152, 1.6212, 1.6264, 1.6314, 1.6346

Supports: 1.6129, 1.6079, 1.6026, 1.5978, 1.5919

Psychological: 1.60

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The EUR/USD is climbing above our 2nd tier uptrend line as it re-approaches the psychological 1.40 mark once again.  The Euro is showing relative strength across the board after last week’s releases gave hope to the German and French economies.  The Euro’s resilience is revealed in the encouraging performance of the EUR/GBP, which has stabilized above several of our near-term downtrend lines.  It seems it’s the Euro’s turn to accelerate after several setbacks, and we believe the EUR/USD could have a little more room to run to the upside for the immediate term.  However, the negative sentiment in the market hasn’t changed, meaning the overall momentum remains to the downside.  Investors are getting for tomorrow with economic data picking back up and 2nd quarter earnings reports hitting the wires.  The EUR/USD should maintain its relative strength for the coming week barring any large disappointments from the EU’s economic sentiment, industrial production, or CPI.

The EU will release important economic sentiment data along with industrial production on Tuesday.  Investors are expecting to see a continual improvement in consumer sentiment as the number approaches 50, or the barrier between growth and contraction.  Investors are also looking for as sharp reversal in industrial production from June’s reading of -1.9%.  Expecting 1.5% may be setting the market up for disappointment since we’ve seen industrial production come in below the median analyst predictions for the past two months.  In addition to key data points from the EU, the U.S. will release retail sales, PPI, and business inventories tomorrow.  Therefore, considering we’re entering the beginning of the 2nd quarter earnings season, the EUR/USD has the potential to become volatile over the next few trading sessions.

The EUR/USD made some encouraging technical moves last week after bottoming out comfortably above June lows on July 8th .  Since then, the EUR/USD has bounced off of our 1st tier uptrend line several times.  Though the EUR/USD popped past 1.40 on July 9th, the currency pair has since retraced, and 1.40 continues to be a formidable foe to the upside.  Hence, 1.40 and June 9th highs should serve as hefty immediate term obstacles.  The EUR/USD may drift higher for the time being until our 3rd tier downtrend line reaches our 1.4065 resistance.  Despite the positive near-term developments in the EUR/USD, we’ve seen volume declining steadily to the upside, meaning the EUR/USD’s run could top-out in the next day or two.  As for the downside, any reversal below July 10 and/or July 8 lows on rising volume would raise a red flag.

Present Price: 1.3975

Resistances: 1.3991, 1.4020, 1.4050, 1.4065, 1.4091

Supports: 1.3970, 1.3944, 1.3915, 1.3889, 1.3865

Psychological: 1.40

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Adam Hewison – We are taking a trip down under today.

It has been sometime since we last looked at the relationship between the US dollar and the Australian dollar (USD/AUD). Today seemed like an opportune time to look at this cross and to figure out where it is headed using our “Trade Triangle” technology.

We’re also using MarketClub’s Fibonacci tool. If you have not seen this tool in action, I strongly recommend that you watch today’s video.

See the New Video here…

You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on our blog.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Source: ForexYard

The dollar was slightly more volatile over the past week than usual, and the explanations for this have been getting trickier by the day. As for this week, forex traders are advised to take positions on trades, as a string of data releases coming out of Unites States, Europe and Japan are likely to affect the greenback’s main currency crosses.

Economic News

USD – The Greenback Waives Up Its Friday’s Gains

The U.S dollar had risen on Friday, against most major currencies amid fears of weak U.S. corporate profits and fading hopes for a global recovery. The USD regained the upper hand as concerns about the global economic outlook curbed investor appetite for riskier assets. Versus the Japanese yen however, the dollar bought 92.37 yen, slipping from 92.99 yen Thursday. The dollar tumbled to 91.81 yen Wednesday, its lowest level versus a broadly higher Japanese currency in more than 4 months.

A report showing U.S. consumer sentiment soured in early July also boosted the currency on Friday. The Dollar can rise if investors sell risky assets such as stocks and commodities and buy back the low-yielding dollars used to finance those purchases, analysts have said.

However, in early Monday trading the USD dipped against the EUR, with the single European currency rising 0.2% to $1.3971, regaining some of the ground it lost against the Dollar on Friday. According to analysts prognosis the U.S dollar may decline to $1.45 per EUR in 3 months, before rebounding to $1.37.

EUR – The British Pound Declines on U.K. Recession Fears

The EUR rose versus the greenback Monday on prospects European Central Bank (ECB) President Jean-Claude Trichet will today signal policy makers will refrain from cutting Interest Rates. The European currency also edged up 0.3% against the Japanese yen to 129.51 yen, having pulled up from last week’s low of 127.00 yen, which was the lowest in almost 2 months.

Meanwhile, the British pound fell against the Dollar for a 2nd week as U.K. stocks fell to their lowest in more than 2 months on indications Europe’s second-largest economy remains mired in a recession. The British currency also recorded its biggest weekly loss against the Yen in more than 5 months, as it tumbled 4.6% this week to 149.62 yen. After climbing almost 13% against the U.S dollar in the first half of the year, the Pound is sliding as investors pare back expectations for a revival in the U.K. economy. The Organization for Economic Cooperation and Development said on June 24 that U.K. Gross Domestic Product will likely shrink 4.3% this year, thus adding to the GBP negative picture.

Yen – Yen Losses on Speculation Goldman Sachs Profit Will Surge

The Japanese currency weakened on speculation Goldman Sachs Group Inc. will report the largest profit since it set earnings records in 2007, reviving demand for higher-yielding assets. The Yen also fell against all 16 major currencies after the opposition Democratic Party of Japan won Tokyo elections yesterday, spurring concern that political uncertainty in the world’s second-largest economy will worsen.

The Yen surged last week as equities and oil prices fell as optimism about a speedy recovery in the global economy faded, with investors fretting that a rally in risk assets since March may have been overdone.

Oil – Crude Falls below $60, Heading For Further Loss

Crude Oil prices fell below $60 a barrel Friday, marking their biggest weekly loss in 6 months as an International Energy Agency (IEA) report reaffirmed concerns about weak demand. Also weighing on Oil prices Friday, data showed U.S. consumer sentiment fell sharply in early July, adding to the recession worries that also dragged U.S. stocks lower.

Oil has tumbled 10.3% this week, its biggest weekly loss. This sharp decline came after the Commodities Futures Trading Commission, the U.S. futures market regulator, said earlier this week that it was considering applying limits on speculation in energy futures.

The market has been too optimistic about a global economic recovery later this year, but that now looks unlikely to happen, so Crude Oil prices are declining. According to analysts Crude prices could see more corrections in the short term as external factors which have helped oil’s recent rally, including a weak U.S. dollar and rising equities, are set to reverse course.

Technical News

EUR/USD

The typical range trading on the daily chart continues. The 4-hour chart RSI is floating in neutral territory. However, the pair currently sits near the bottom border of the hourly chart’s RSI, suggesting an upward correction may be imminent. Going long with tight stops may turn out to be a good strategy today.

GBP/USD

The pair currently sits near the bottom border of the daily chart’s RSI, suggesting an upward correction may be imminent. The upward direction on the hourly chart’s Momentum oscillator also supports this notion. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

USD/JPY

The hourly chart is showing mixed signals with its RSI fluctuating at the neutral territory. However, the daily Chart’s RSI is already floating in the oversold territory indicating that a bullish correction might take place in the nearest future. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

USD/CHF

The pair has been range-trading for a while now, with no specific direction. The Daily chart’s Slow Stochastic providing us with mixed signals. The 4 hour charts do not provide a clear direction as well. Waiting for a clearer sign on the hourlies chart might be a good strategy today.

The Wild Card – Crude Oil

The Oil prices are once again dropping, and it is currently traded around $59.10 per barrel. However, the daily chart’s RSI is floating in an oversold territory suggesting that a recent downwards trend is loosing steam and a bullish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Adam Hewison – How trade triangles can help you trade in the ETF markets

Today we will be looking at our trade triangle technology and how it can help you time the ETF markets successfully.

In this short video I will show you exactly how to use our trade triangle technology in the ETF markets.

See the New Video here…

You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on our blog.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub