Friday, October 24, 2008
Oct-23- Daily Forex Analysis
| by: Forexyard Technical News EUR/USD Similarly to what is happening all across the board, the USD bullishness did not skip this pair as well. It appears that the local EUR/USD bearish momentum might be taking the pair to 1.2600 levels. There are still bearish signals on one hourly chart, yet it seems that pair is overlooking all technical aspects. Going short wit tight stop might be the right choice today. GBP/USD A bearish formation on the daily chart is still intact; however the momentum is already quite low. The 4 hour chart is also maintaining a slightly bearish configuration yet with no distinct conclusion. The Bollinger Bands are tightening which indicates that the break might be imminent. Traders are advised to hold for the break and then swing into it. USD/JPY The pair is continuing its bearish movement with full steam, as it breached the 97.60 support level. The daily chart shows that the current price has dropped beneath the Bollinger Band's lower boarder, indicating that the bearish move has more steam in it. Going short seems to be a preferable choice today. USD/CHF The very strong resistant level of 1.1650 has been breached, and the pair is extending its bullish journey. An upwards momentum on the hourly chart's Slow Stochastic suggests that the pair may extend its bullish trend. Going long with tight stop might be the right strategy today. The Wild Card Crude Oil The Crude Oil price is once again dropping and a barrel of Light Crude is currently traded around $67. However, all oscillators on the daily chart are now providing bullish signals, indicating that the Oil might go up. In this case forex traders may have a great opportunity to enter a very popular trend. Economic News USD Unemployment Claims on Tap The greenback continued its rally yesterday as it further strengthened against the EUR and GBP, continuing to prove that for the time being this is the solid currency that traders can rely on to provide them with steady profits. The USD marked a 4-year record against the GBP yesterday, as the pair sunk to the 1.6150 level. The USD almost saw a 2-year record against the EUR as well, as the pair was traded at the 1.2730 level. Although no significant indicators were published from the U.S. economy, and no valid explanation can throw some light on this phenomenal trend, the USD continues to rise against all the major currencies, except for the JPY. It appears that in times when real estate is considered to be a risky investment with the word bubble hovering above it, and when stock markets around the globe are competing on who will provide today's most unfortunate news, the USD suddenly seems more attractive than ever. To highlight the significance of this trend, consider this: September 15th was the day when Lehman Brothers Inc. announced its filing for bankruptcy, and is considered to be the day when the global turmoil started. On this day the EUR/USD pair was traded around the 1.4300 level - today, about a month later, 1.2700 looks to be the new daily support level! This is a difference of roughly 1,600 points. As for today, the economic calendar is likely to play a leading role as the U.S. Unemployment Claims is expected at 12:30 GMT. If the U.S. economy is indeed heading towards recession, this is one of the leading surveys to predict it. An industry that contracts is one that aims to reduce expenses, and one which fears severe future losses. If the forecast for the 470K figure will be accurate, then the USD might face a bearish correction against the major currencies. Otherwise, the greenback will probably continue its journey to explore new bullish lands. Labels: forex, Forex Analysis |
posted by Matbank at 12:27 AM
