Month: September 2009

By Adam Hewison – With the printing presses in full printing mode, many people are questioning why gold prices haven’t gone higher – much higher.

In my new video, I explain some of the subtle market cycles that are at play right now in this market. These short-term cycles have been the dominant force in gold all year and appear to be still in control of price action.

I believe the longer-term upward trend in gold is very much intact; short-term we could see more of a trading range that has a downward bias. I think when you watch this video you will get a much better understanding about the rhythm of this market.

If I am correct, you will see some amazing opportunities that I believe will be presented to traders in Q4. In fact, if everything goes according to plan are we could all be looking at some very nice Christmas/holiday profits.

The video is easy to follow and I think you’ll learn a whole lot about cyclic price action in the gold market.

We do not require you to register to view this video.

Discover and benefit today from what I learned over 30 years ago in the trading pits of Chicago.

Watch the New Video Here…

Enjoy the video and please give us your feedback on this blog.

Every success,

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

Source: ForexYard

There is likely to be less volatility in the market today with almost no market moving data on tap from Japan Europe and Unites States. Yet, few fundamental events that are due out later today may indeed create a remarkable wave in the market, especially towards the late afternoon hours.

Economic News

USD – USD Ups and Downs Result of Market Uncertainty

The US Dollar experienced an exciting trading day on Monday as a rise in risk averse trading helped add an early morning boost, followed by a retracing of Friday’s levels. Against the EUR, the greenback climbed to as high as 1.4610 before coming back down and closing the day at 1.4717. Versus the British Pound, the USD gained as much as 90 pips, with a high mark of 1.6134, before coming back up and closing out the trading day at the 1.6250 level.

With a decision regarding the Federal Funds Rate looming, traders are becoming more aware of the potential delay in any increase to short-term interest rates due to the instability of global economies recently. Britain has made similar overtures, as did the Euro-Zone in its recent discussions. However, the question still remains over whether the global economy is indeed recovering as many were expecting. This uncertainty drives many investors back into safe-havens for the short-run until things become clearer.

As far as the North-Western Hemisphere is concerned today, the United States is not due to release much data of concern. Canada, on the other hand, is going to release vital data regarding its retail sales levels, which last week caused a stir among the USD and EUR. Growth in Canadian sales may help return the Loonie back to a bullish posture, but forecasts appear modest at best. This Wednesday’s US interest rate decision appears to be this week’s primary event for Dollar traders.

EUR – EUR Benefits from USD and GBP Aversion

The EUR continued its rally against most currencies, save the USD, in yesterday’s trading; making considerable inroads against the GBP especially. Climbing as high as 0.9076 versus the Pound and upwards of 135.48 against the Japanese Yen, the EUR may indeed be one of the primary beneficiaries of market growth, and the continuing uncertainty.

Investors appear ready to make the shift into riskier assets to return to the heady days of pre-2008 growth, but market concerns make their transition move somewhat sheepishly. Regional retail sales in Europe and the US helped give a boost to consumer optimism, but only offset losses in other sectors such as housing and consumer sentiment. With the Pound under heavy selling pressure following statements from Bank of England governor Mervyn King, the EUR, as stated above, has become one of the primary beneficiaries of recent returns to strength and risk appetite.

Going into today’s trading, with little on the economic agenda, the EUR may be poised to benefit from the uncertainty surrounding the US interest rate decisions due on Wednesday. With an announcement similar to those of Britain and Europe recently regarding a delay of an interest rate hike, the EUR could be on the receiving end of further risk appetite and USD-aversion.

JPY – Japanese Bank Holiday Puts Additional Sell Pressure on Yen

The Japanese Yen appears to be returning to a bearish posture against its major currency rivals considering it ended yesterday’s trading down somewhat versus all of its major rivals. Hitting the 149.60 level against the GBP, and even dropping to the 135.50 level against the EUR, the island currency is a little worse for wear considering its latest movements.

Many economists point out, however, that the banks in Japan being closed in celebration of the autumnal equinox carries a significant role in this latest downtrend. The thinly traded JPY only appears weak momentarily until the Japanese markets come back online early Wednesday. In other Asian news, the currencies of the south Pacific (Australia and New Zealand) appear to be gaining heavily against all of their currency rivals. Their avoidance of the harshest aspects of the global downturn has made them juicy targets for risk-hungry investors. Traders would be wise to note the upward movement of these pairs and trade accordingly.

Crude Oil – Crude Falls to $70; Prices Rose too Quickly According to Investors

Investors hoping for a growth in oil prices were dismayed by news yesterday that the price for a barrel of Crude Oil may have risen too quickly from last week’s market optimism. As yesterday helped traders realize, Crude Oil may indeed be over-valued and its recent strength has come to a temporary halt. After last week’s steady yet volatile gains, the beginning of this week has started with a drop of almost $3 a barrel, closing out yesterday’s trading just above $70.

Adding to the sell pressure on Crude Oil is the surprising surge in the value of the USD in yesterday’s early trading hours, albeit offset somewhat by its retraction later in the day. But market optimism seems to have returned, but energy demand concerns persist. Crude Oil has been on the verge of reemerging as a lead investment and inflationary hedge, yet it has failed to receive the same level of support as Gold and Silver, which suggests that demand for oil is low, and precious metals are being used in its stead as a safety valve. Chances are, so long as market uncertainty remains, Crude Oil will continue to float near its current mark.

Technical News

EUR/USD

The price of this pair appears to be floating in the over-bought territory on the daily chart’s RSI indicating a downward correction may be imminent. The downward direction on the hourly chart’s Momentum oscillator also supports this notion. When the downwards breach occurs, going short with tight stops appears to be preferable strategy.

GBP/USD

The cross has been dropping for the past week now, as it now stands at the 1.6240 level. The Slow Stochastic of the daily chart shows a bullish cross has recently formed, indicating that an upward correction is imminent. This view is also supported by the RSI of the 4-hour chart. Going long with tight stops may turn out to be the right choice today.

USD/JPY

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. All oscillators on the 4 hour chart do not provide a clear direction as well. Waiting for a clearer sign on the hourlies might be a good strategy today.

USD/CHF

The daily chart is showing mixed signals with its RSI fluctuating at the neutral territory. However, the 4-hour 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.

The Wild Card – EUR/GBP

This pair’s sustained upward movement has finally pushed its price into the over-bought territory on the daily chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.

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.

Market Movers of the Day

Asia-Pacific

*Japan’s markets closed on national holiday

*New Zealand’s Current Account Balance for 2Q surprised for the better at 0.12B

Americas

*US Leading Indicators rose 0.6% in August, less than market expectations

The Overall Sentiment

US market fell today with the S&P and the Dow closing around 0.3% down each in a session where profit taking came into play to erase some of the gains of the recent equities’ rally. The Dollar strengthened against all majors in a day with slightly low volume in the Forex arena with no key economic data releases and operators from Japan on holiday. Selling pressure was experienced in commodity markets as the rising Dollar diminishes their appeal as an alternative investment. Crude Oil retreated to $70 and Gold dropped for a third day to trade around $1000 pushing down commodity-linked currencies.  The New Zealand dollar recuperated as New Zealand’s Current Account figures showed the narrowest deficit since 2004 driving the Kiwi to its highest level this year. The Pound continued to weaken reaching its lowest levels against the Euro in almost five months. The Yen lost ground against the greenback for a sixth day with the USD/JPY pair trading above 92.

The Day Ahead

With Japan still on holiday the day will start with New Zealand’s Westpac Consumer Confidence and Switzerland’s Trade Balance will follow as we move towards the US session. Market forecasts are optimistic about Canadian Retail Sales as last month’s positive data on Wholesale Sales and employment signaled that consumer demand could also show an improvement. US Housing Price Index will provide an estimate on current housing market conditions and the day will close with New Zealand GDP figures where a further economy contraction is expected but at the slowest pace in six quarters. Overall markets will be awaiting the Fed’s announcement on Wednesday which could shed some light on the future of its Quantitative Easing Program and the G20 statement on Friday about global recovery and exit strategies.

Technical Analysis

GBP/JPY DAILY

After trading in a bullish trend the first half of 2009 GBP/JPY double-topped slightly above 162 forming a broad channel around the 148-162 levels. The cross presents the opportunity to enter a short-term Long position as it is currently trading near the support just above 148 but the double-top formation should be kept in mind as it may signal a bearish direction for GBP/JPY’s next big move.

Market Analysis provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.

© 2009 eToro Blog.

By CountingPips.com

The U.S. Leading Indicators Index published by the Conference Board today increased for the fifth straight month in August. The Leading Indicator Index, which measures future economic activity, registered a 0.6 percent increase in August following a revised increase of 0.9 percent in July. The index increased by 0.8 percent in June and has now advanced by 4.4 percent in the six months from February to August. August’s increase was just a bit lower than the market forecasts which were predicting a gain of 0.7 percent for the month.

Stock prices, building permits, interest rate spread and weekly jobless claims helped contribute to the increase in the leading indicators index.

An economist at the Conference Board, Ken Goldstein commented on the report saying, “The LEI has risen for five consecutive months and the coincident economic index has stopped falling. Taken together, this suggests that the recession is bottoming out. These numbers are consistent with the view that after a very severe downturn, a recovery is very near. But, the intensity and pattern of that recovery is more uncertain.”

The coincident index, which is viewed as a measure of the current economic activity, was unchanged in August after gaining in July by 0.1 percent while the lagging index decreased by 0.1 percent after declining by 0.5 percent in July.

US Dollar higher in Forex Trading today.

The U.S. dollar has been trading higher today against the other major currencies in the spot forex market.  The dollar has been stronger versus the British pound, Australian dollar, Canadian dollar, Swiss franc, New Zealand dollar and the Japanese yen while the USD has been almost unchanged versus the Euro in the afternoon of the US session at 2:36pm.

GBP/USD Daily Chart – The British Pound Sterling falling today versus the US Dollar in forex trading and declining to under the 1.6200 level. The GBP/USD had reached a 2009 high on August 5th around the 1.7040 exchange level before sliding lower.  The pair has now fallen under the 100-day simple moving average in red.

By Fast Brokers – The EUR/USD is experiencing profit-taking as investors lock-in some gains.  The lack of global economic data provides a great opportunity for profit-taking.  We notice profit-taking across the board, from equities to crude to the Yen.  Investors won’t receive noteworthy econ data until Wednesday’s rush of EU PMI data grouped with BoE and Fed monetary policy decisions.  The Greenback’s broad-based strength is not surprising, and a return to the Dollar is being encouraged by political and economic uncertainty in the U.S.  Obama’s popularity is waning as the U.S. President deals with financial and health care reform along with deteriorating conditions in Afghanistan.  President Obama’s honeymoon is certainly over, and U.S. citizens want results.  Meanwhile, trade disputes with China are brewing in the background, stoking fears of global protectionism.  However the central bank meetings and G20 summit provide perfect opportunities to improve psychology.  Meanwhile, investors shouldn’t forget that last week’s round of data was impressive, particularly numbers from the U.S. and EU.  Therefore, global economic fundamentals continue to strengthen, meaning the longer-term depreciation of the Dollar is still in play.  Investors would need surprisingly negative outcomes from the central bank and G20 meetings this week coupled with weak economic data to reverse the positive tide.

Meanwhile, the Euro continues to flex its relative strength due to the combination of positive EU econ data and the ECB’s comparatively hawkish monetary stance.  However, the EUR/GBP has been on a tear lately, so further consolidation in this currency cross and slight weakness in the Euro wouldn’t be surprising.  We found last week’s EU pricing and export data improved beyond expectations, supporting the ECB’s monetary policy.  Wednesday’s PMI data should play an important role in extending the ECB’s philosophy should the data outperform.  We’ve readjusted our uptrend lines to compensate for today’s dip.  The EUR/USD remains comfortably above 9/15 lows and our new 1st tier uptrend line.  We find a recurrent theme across the markets regarding the importance of 9/15 lows.  Therefore, investors should keep an eye on 9/15 lows in gold, crude, and the S&P futures.  The protection of the EUR/USD’s 9/15 lows and our 1st tier uptrend line could spell the difference between a minor setback and a more protracted decline.  The 9/15 lows carry further importance for the EUR/USD since they also represent a retest of the 1.45 psychological level.

Present Price: 1.4644

Resistances: 1.4656, 1.4678, 1.4703, 1.4724, 1.4745

Supports: 1.4627, 1.4609, 1.4590, 1.4568, 1.4551

Psychological: 1.45, 1.50

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 GBP/USD is battling to stay above previous September lows in order to forgo another negative technical development.  Bulls are swooping in and buoying the Pound across the board; notice topside consolidation in the EUR/GBP.  Sterling has taken a beating over the past couple sessions after BoE Governor King’s dovish most recent dovish statements finally sank in.  However, investors may opt to keep the GBP/USD above September lows and avoid a retest of the highly psychological 1.60 level until we see whether the BoE follows through on King’s dovish contemplations.  Meanwhile, there is heightened uncertainty regarding the extent of the BoE’s dovish behavior.  Although investors have priced in further liquidity measures, it remains to be seen how aggressive the monetary policy will be.  On the other hand, any hesitation or lack of action by the BoE would likely result in a huge rally in the Cable.  Britain’s economic data wasn’t so bad last week, employment and pricing data printed in line or above analyst expectations.   Therefore, the GBP/USD’s relentless weakness clearly took its cue from King’s psychological monetary shock.  Britain won’t be releasing much noteworthy econ data this week, leaving the GBP/USD’s performance up to the BoE’s monetary policy decision, U.S. equities, and the psychological forces surrounding the G20 summit.  Hence, investors should pay close attention to the behavior of the S&P futures and their interaction with our 1st tier uptrend line and 9/15 lows should they be tested.

The technical key will be for the Cable to stay above September lows and the highly psychological 1.60 level should the pullback continue.  As for the topside, the Cable faces multiple downtrend lines and the 1.65 level becomes a psychological barrier once again.  The Cable is skating on thin ice now since we’re running low on uptrend lines.  Therefore, this week’s trading could play a large role in determining whether we are witnessing the beginning of a more protracted pullback in the market.

Present Price: 1.6171

Resistances: 1.6181, 1.6202, 1.6225, 1.6238, 1.6258, 1.6288

Supports: 1.6151, 1.6142, 1.6113, 1.6094, 1.6071

Psychological: 1.60, 1.65

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 has experienced a nice pop as the Dollar experiences broad-based strength.  The lack of economic data is allowing investors to take profits, and in this case snatch up an oversold Yen.  The DPJ’s more conservative fiscal approach is worrying investors slightly that the economic recovery taking root may be compromised if stimulus is withdrawn.  The psychological uncertainty is giving investors a good reason to buy up a battered USD/JPY.  However, nothing has changed fundamentally, and the DPJ’s conservative approach should actually favor a stronger Yen in the long run.  Therefore, the USD/JPY’s present strength isn’t convincing enough for us to change our bearish outlook trend-wise.  We’ve readjusted our trend lines, and our 3rd and 5th tier downtrend lines appear to be the more significant technical barriers since they run through September and 8/24 highs, respectfully.  Meanwhile, we notice technical supports in all of the USD/JPY’s negative correlations.  Hence, with Japan on a National Holiday for the next two sessions, investors may wait for Wednesday’s wave of econ data and central bank meetings before making any technically significant decisions.

Japan will join the party Wednesday by releasing its Trade Balance.  We believe Japan’s Trade Balance will come in stronger than expected since China’s TEU data continues to grow with the country’s economic recovery running on schedule.  Additionally, recent data from the U.S. has been stronger than expected; indicating demand for Japanese exports likely improved since the last time we received Trade Balance data.  An outperformance of Japan’s Trade Balance data would likely place further downward pressure on the USD/JPY, corresponding with our expectations for strong EU PMI data and resulting outperformance in the Euro.  In all, we maintain our negative outlook trend-wise on the USD/JPY until the currency pair’s aforementioned topside technical barriers are knocked out.  As for the downside, our multiple uptrend lines should serve as reliable cushions while the highly psychological 90 level waits in the distance.

Present Price: 92.26

Resistances:  92.51, 92.75, 92.93, 93.16, 93.31

Supports:  92.23, 92.04, 91.84, 91.61, 91.42

Psychological: 90

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 – The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you’re aware of these indicators, it could be very expensive.

In today’s short video, I explain both the technical indicators we are discussing and also the important time frame that we are just about to enter.

I think you will find today’s video not only interesting, but also educational.

There is no need to register for this video and of course you can watch it with my compliments. I highly recommend watching this video today, otherwise you risk missing out on what could be the move of the year.

Enjoy the video.

Watch the New Video Here…

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

Hi, this is Adam Hewison and I have just returned from vacation in Maine. This is my first day at the office and my first video from the digital den.

While I was away, I got to thinking about one of the oldest myths about trading: the buy and hold myth. While this strategy has worked in certain markets at certain times, I do not believe we are in a time frame where this strategy is going to meet with a lot of success.

The world around us is changing rapidly and therefore it is important to have strategies that can change with this new regime.

In today’s video I’m going to show how the buy and hold strategy is flawed when you compare it to our “Trade Triangle” technology. I think you will be surprised at the results and how well you can do using this simple approach to markets.

There is no need to register for this video and of course you can watch it with my compliments. I highly recommend watching this video today, otherwise you risk missing out on what could be the move of the year.

See the New Video here…

Enjoy the video and please give us your feedback on this blog.

All the best,

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

Source: ForexYard

This month investors have increasingly moved to riskier assets like stocks, commodities and higher-yielding currencies, as concerns about a ballooning U.S. fiscal deficit and low Interest Rates have fueled Dollar selling. The Federal Open Market Committee (FOMC) is expected to hold Rates steady but markets will be interested for any guidance on whether the Fed will continue its expansionary monetary policy for a prolonged period of time

Economic News

USD – Dollar Advances on Economic Optimism

The Dollar saw quite a volatile session during last week’s trading. The Dollar dropped against the EUR, although saw a rising trend against the Yen and especially against the Pound, as the Dollar soared over 400 pips against the GBP. On Monday the U.S dollar gained in thin conditions, extending a bounce seen late last week as traders covered short positions ahead of a Federal Reserve monetary policy meet and a Group of 20 summit.

It seems that the main reason for the Dollar’s volatility is the mixes results coming from the U.S economy last week. The U.S Retails Sales continued to deliver positive figures. This means that the total value of sales at the retails level is growing, showing that consumers in the U.S might feel safer to spend these days. Also last week, the Consumer Price Index (CPI) rose by 0.4%, proving that inflation continues to rise in the U.S. This could have a significant impact on the Dollar, as the rising inflation usually leads to an interest rate hike, which may very well support the Dollar.

But on the other hand, the Long-Term Purchases publication failed to reach expectations for a 65.3B result which would have reflected a recovering economy, and the final result was 15.3B. This appears to be one of the main factors for the Dollar depreciation against the Euro.

As for the week ahead, a number of important data are expected from the U.S economy. The most significant will be the Federal Funds Rate Statement which is scheduled for Wednesday 18:15 (GMT). Analysts expected no change to the central bank’s target, but speculate whether the fed will make changes to its debt-buying programs. Traders are advised to pay close attention to the Fed’s announcement on Wednesday.

EUR – The EUR off 1 Year Highs; GBP Dips

The EUR eased against the U.S. dollar to $1.4688, having lost about 0.2% on Friday, though strong support is seen around $1.4640. On the Yen, the European currency held steady around 134.35 yen. The EUR dropped from near a 1 year high versus the U.S dollar after the European Union (EU), said yesterday that a restructuring of the banking sector must take place. According to EU policy makers Europe needs continued low Interest Rates and government stimulus measures to keep the recovery on track.

The Sterling extended losses, hitting a 4 month low against the EUR of 90 pence on news the UK had set tougher-than-expected conditions to the potential exit of Lloyd’s Bank from a state-run scheme to protect its assets. The GBP dropped to 90.53 pence per EUR from 90.40 pence on Sept. 18, after earlier touching 90.67 pence, the lowest level since Apr. 24. The British pound may weaken further against the Dollar and the EUR on speculation the Bank of England will keep borrowing costs low.

Looking ahead to this week, a batch of data is expected from the Euro-Zone’s leading economies, especially on Wednesday. Many French and German indicators are scheduled for Wednesday, as this day seems to be the day that will determine the Euro’s direction for this week. Traders are advised to follow all the main publications on this day and look for any unexpected result that may soar or tumble the Euro.

JPY – Yen Losses Strength against the Majors

The Yen continues to depreciate against the major currencies during last week’s session. The Yen dropped over 100 pips against the Dollar and the USD/JPY pair is currently traded around the 91.50 level. The Yen also saw a bearish trend against the EUR.

While the Japanese yen gained against all but one of the 16 most- actively traded currencies since early August as the Democratic Party of Japan became the likely winner in national elections, forecasters say it will decline 5.7% against the U.S dollar and 1.2% versus the EUR by year-end. The economy is too weak to support a stronger rate, according to analysts.

The main data of this week appears to be the Trade Balance report, which is expected on Wednesday 23:50 GMT. This report measures the difference in value between imported and exported goods during August, and is one of the best indications for Japan’s exports. A better-than-expected result might have the potential to support the Yen.

OIL – Crude Oil Slips On Firmer Dollar

Crude prices fell for a 3rd day on speculation further evidence of a global recovery is needed to extend the commodity’s 61% gain this year. Oil prices were also pressured by bearish comments from Sinopec, Asia’s top refiner and China’s 2nd largest oil and gas producer, that diesel demand in China continues to lag economic recovery.

Oil rose 3.9% last week, thanks to U.S. government data showing a larger-than-expected draw in crude stocks, heavy losses in the U.S. dollar and rallying stock markets. Though Crude prices have only gained about 3% so far this quarter, after shooting up 40% in the June quarter, some analysts said Oil prices were set to move higher in coming weeks amid an economic recovery and seasonal winter demand.

Looking ahead to this week, traders are advised to follow the leading publications from the U.S and the Euro-Zone, and to follow the equity markets in the major economies in order to predict crude oil’s movements. Traders should also focus on the Crude Oil Inventories report which is expected in Wednesday, as it has proven to have an instant impact on oil’s value.

Technical News

EUR/USD

The price of this pair appears to be floating in the over-bought territory on the RSI of the daily chart, signaling a downward correction may still be relevant. The imminent bearish cross on the daily chart’s Slow Stochastic also supports this notion. Going short might be a wise choice today

GBP/USD

The Bollinger Bands on the hourly chart appear to be tightening in expectation of a volatile movement. As the 4 hour chart’s RSI shows the price of this pair floating in the over-sold territory, and as the recent bullish cross on that chart’s Slow Stochastic demonstrates, we may be in for a sharp upward movement. Going long with tight stops might be a good strategy

USD/JPY

An upward movement on the hourly chart is running full steam ahead. A distinct bullish channel hasn’t been breached yet, while 92.25 might be the next target price. The daily chart also confirms that notion; therefore going long may be a preferable strategy today

USD/CHF

It appears a breach of the upper border of the hourly chart’s Bollinger Bands occurred early this morning, indicating the pair may correct downwards in the nearest future. However, the bullish channel which this pair is currently trading in has not been penetrated by a clear breach of its upper or lower levels. Trading within this range by buying on lows and selling on highs might be a wise choice today.

The Wild Card – Gold

The price of this commodity currently floats in the over-sold territory on the 4-hour chart’s RSI, indicating an upward correction may occur in the nearest future. With the recent bullish cross on both the 4-hour and hourly chart’s Slow Stochastic oscillators, this correction may indeed be imminent. Forex traders can earn high profits today by opening large buy positions and riding out this impending movement

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.