FOREX TRADING

Forex Technical Analysis Dialy 09.23.2009

EURUSD

The Euro versus Dollar pair surged to the upside to near our initial target for the intraday uptrend at 1.4875. We see in the above image that trading is within a bullish channel continuing the intraday uptrend with targets at 1.4960 yet with possibility of a slight downside correction to 1.4755 before rebounding back to the upside. The incline remains as far as 1.4665 is intact.

The trading range for today is among the key support at 1.4470 and the key resistance at 1.5135

The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000

Support: 1.4755, 1.4665, 1.4630, 1.4565, 1.4515
Resistance: 1.4875, 1.4900, 1.4965, 1.5000, 1.5075

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.4755 to 1.4875 and stop loss below 1.4665 might be appropriate.

(more…)

Technical analysis for Major Currencies

EUR/USD

The Euro versus Dollar pair continues to trade within a tight range since yesterday after breaching the pivot resistance at 1.4345. Maintaining levels above 1.4300 will keep our expectations to the upside where we still see chances of an incline on the intraday basis targeting the critical resistance at 1.4660 as the pair currently attempts to gather bullish momentum. We wait for more confirmation from momentum indicators which are neutral yet as far as trading is above 1.4300, the pair is to incline.

The trading range for today is among the key support at 1.3975 and the key resistance at 1.4650

The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120

Support: 1.4300, 1.4250, 1.4170, 1.4145, 1.4100
Resistance: 1.4345, 1.4375, 1.4430, 1.4475, 1.4550

Recommendation: Based on the charts and explanations above, our opinion is buying the pair with the breach of 1.4345 to 1.4450 and stop loss below 1.4250 might be appropriate.

(more…)

Today is a quiet news day for the U.S. and Canada, because there are no economic data releases on the calendar today. Nevertheless, Britain and Euro-zone appear to be releasing the bulk of today’s news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.

USD – USD Downtrend to Continue; Labor Day Causes Thin Trading

The Greenback experienced some intense trading sessions last week. Following Friday’s Non-Farm Payroll data the US Dollar rapidly arose from the better-than-expected results, but ended the day significantly lower versus its primary rivals as many investors dumped the US Dollar in exchange for riskier assets. As a matter of fact, the Greenback dropped versus the EUR to above the 1.4300 price level, and the 1.6400 level versus the Pound Sterling.

This weekend’s G20 Summit also increased the Dollar’s bearishness at the start of this week’s trading, many analysts have said, as hawkish statements from world leaders has spurred a rally in market optimism and risk appetite. Supporting this notion is the downtrend of the Japanese Yen versus all of its rivals, signing a sell-off in safe-haven currencies – a category which the US Dollar still falls in as well. (more…)

Technical Analysis for Major Currencies

EUR/USD

The Euro versus Dollar pair declined within the consolidation area to trade around the pivot support at 1.4250. The stochastic indicator shows the pair being oversold, which makes us believe that the pair is to incline on the intraday basis, in an attempt to breach 1.4375 before heading towards 1.4650. Note that the NFP is on queue later today at 12:30 which may result in volatile trading.

The trading range for today is among the key support at 1.3975 and the key resistance at 1.4650

The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120

Support: 1.4250, 1.4170, 1.4145, 1.4100, 1.4070
Resistance: 1.4300, 1.4375, 1.4430, 1.4475, 1.4550

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.4250 to 1.4375 and stop loss below 1.4145 might be appropriate.

(more…)

There were more signals that the U.S. economy was improving, as a string of positive data was released yesterday from the U.S. the most important was the Chicago PMI, which printed higher-than- anticipated figures in the month of August. This indicator is a primary gauge of manufacturing sector, acting as the main driver of the U.S. economy. On top of this good news, rise in demand for U.S. goods from abroad is also probably to help boost the U.S. economy in the coming months.

USD – Chicago PMI Data Pushes the USD Lower

Evidence is increasing that the worst of the global recession is passed. Business activity in the U.S., the world’s biggest economy, rose more than economists forecast in August, the Institute for Supply Management-Chicago Inc. said Monday. The Chicago PMI report is further indication that the U.S. economy is starting to improve; the data eased risk aversion among investors analysts said, with positive data negative for the Dollar and Yen.

The USD fell versus a basket of currencies due to the decline in U.S. equities, as fears that the recent rally has overheated. This decline was led by the 7% fall in China’s stock market index. As a result, the Dollar was hurt as traders fled to currencies such as the GBP and EUR. The greenback fell by about 50 pips to the 1.4336 level vs. the European currency. Against the British Pound, the Dollar slid by over 50 pips to 1.6283. The USD did make some gains, as the USD/JPY cross rose by 30 pips to the 92.95 level. Note, this is the first time in 3 days that the USD closed higher against the JPY. (more…)

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 U.S., Europe and Japan are likely to affect the greenback’s main currency crosses.

(more…)

Greenback gained ground Wednesday versus the EUR and the British pound, after strong data on orders for new U.S.-made durable goods and new home sales comforted anticipations of an improvement in the economy. The US Dollar traded higher after the durable-goods orders report said orders for July arose by 4.9%, the largest growth in 2 years. Investors will be watching for the new U.S. jobs report today before making significant moves. (more…)

Later afternoon trading saw the price of Crude Oil take a nose dive as traders took profit. The price of Oil stalled at the $75 resistance level and fell significantly following the failed breach. Today traders will be tracking the release of the U.S. Crude Oil Inventories data along with the New Home Sales numbers for today’s market direction. (more…)

Today’s U.S. Consumer Confidence data release is set to dominate the trading between the Dollar and its major currency pairs. A number of other factors are also likely to impact the forex market today, such as the British BBA Mortgage Approvals at 8:30 GMT. The results of today’s data are likely to determine the USD’s trend going into rest of the week’s trading. (more…)

Last week noticed a sharp drop in the US Dollar’s value, specially versus the EUR and the CHF. The biggest question for this week is whether the Dollar will continue to see bearish trends against the major currencies, or reverse. It seems that the upcoming data from the U.S. economy will play a main role in this week’s trading, and traders are advised to follow these main publications closely. (more…)

Yesterday’s bearish behavior by the GBP was felt by many traders as the Bank of England’s (BOE) Monetary Policy Committee (MPC) released the minutes from a recent meeting regarding interest rates and quantitative easing. There was a hint of dissension among the policymakers with some calling for a greater extension of the quantitative easing program which ended up pumping an additional 50 billion Pounds into the UK market recently. Fears over weak inflationary growth and market downturns have some MPC members lobbying for more aggressive measures, which puts pressure on the Pound. (more…)

The Greenback anticipates the release of U.S. Core CPI at 12:30 GMT. The reason this publication is so significant is due to it being a leading measure of U.S. economic growth and inflation. A positive figure is probably to help the US Dollar gain strength throughout today’s trading. The US Dollar will also be affected by its yesterday’s bearishness, as there perhaps a slight correction in the greenback. Traders should open their USD positions now in order to make maximum profits from end-of-week trading. (more…)

On yesterday’s trading, the Yen kept going to be the dominant currency in the forex market. When almost of the major currencies attended fluctuate without marking a sustained trend, the JPY strengthened on all fronts, and currently looks to be this week’s top investment. On today’s trading, the most fascinating data will come at 18:15 GMT, as the Federal Funds Rate for August will be announced. The main question is whether the Fed will hike rates in light of recent positive economic data. Such a turn of events could create mayhem in the market, and traders are advised to be prepared. (more…)