The original trend line (1) has been drawn, connecting with yesterday’s closing price of 1.4732. A parallel channel line (2) has been drawn from the prominent peak of 1.3630. Notice the pair has dropped down to the original trend line at yesterday’s close and is now proceeding upward. This may present an opportunity for entering into the market with a new long position.

source:  forexyard.com

• The technical indictors used are the Slow Stochastic, Relative Strength Index (RSI) and Williams Percent Range.

• Point 1: Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The Williams Percent Range also supports the downward direction.

GBP/USD Hourly Chart

source:  forexyard.com

• The chart below is the USD/ZAR chart by ForexYard.

• The technical indicators used are the Bollinger Bands, the Relative Strength Index (RSI), the Slow Stochastic and the MACD/OsMA. The Fibonacci Retracement lines are used as well.

• The Slow Stochastic shows a sequence of bearish crosses, and has recently located below the 20 line. This indicates that the pair’s downtrend could extend.

• The MACD provides a clear bearish signal as a bearish cross has recently taken place. The MACD is pointing directly down, strengthening the bearish indication.

• The pair is currently traded around the 50% line located at the 7.74 level. It seems that if the pair will breach the 7.725 level, a sharp drop could take place with potential to reach the 7.60 level – the 38.2% line, the next significant support level.

• The RSI is currently located near the 30 line. If the RSI will drop below this line, this will state that the pair has reached the Over-Sold zone, and could put extra bearish pressure on the pair.

source:  forexyard.com

• The technical indicators that are used are the Williams Percent Range and Slow Stochastic.

• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.

• Point 3: The Williams Percent Range indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.

USD/NOK 4-Hour Chart

source:  forexyard.com

It touched $1.4902, the weakest level since Oct. 27. The U.S dollar suffered a broad-based decline, trading lower against every major foreign denomination except the Japanese yen. The Dollar advanced 0.8% to 91.03 yen, from 90.33.

As expected, the Fed kept its target for its federal funds rate set at a range of zero to 0.25%. The central bank said it would buy $175 billion of agency debt, down from prior plans to purchase $200 billion, as there was a limited availability of the securities.

The Dollar was not forecast to gain any serious ground to the EUR for many more months or at least until the U.S. Federal Reserve decides the time is right to raise rates. A decision and statement later Wednesday from the Fed should confirm that will not come for some time.

source:  forexyard.com

However, in the coming few hours, the leading currencies, such as the GBP/USD cross will be under much pressure from the Dollar, as a string of data is set to be released from the U.S. At 13:30 GMT, the Unemployment Claims, Prelim Nonfarm Productivity and the Prelim Unit Labor Costs will all be published simultaneously from the U.S. Surrounding these releases; there will be very high volatility in the forex market. Thus to open big positions in the U.S. Dollar now will be the wisest decision that you make this week.

source:  forexyard.com

USD/JPY Hourly Chart

source:  forexyard.com

source:  forexyard.com

The European currency’s strength was in line with other global currencies that took advantage of renewed risk appetite that suggested U.S. interest rates will stay low for some time; particularly after last week’s soft U.S. jobs data

source:  forexyard.com

While some analysts were concerned about a swift Swedish recovery due to the Baltic crisis, most countries in the northerly region have seen strong and steady growth. Norway’s economy has benefited largely from climbing Crude Oil prices and Denmark’s debate about entry into the EU’s legal regulations has helped its economy find direction.

The NOK, SEK and DKK have all climbed to 2-week highs versus the USD, as well as a near-2-week high against the EUR. Following Norway’s decision to hike interest rates recently, the region appears to be on the receiving end of recent risk appetite. If this continues, Scandinavia may find itself leading the broader region out of this economic downturn.

Technical Analysis

- The chart below is the 2-hour EUR/SEK chart by ForexYard.

- The indicators used are the Relative Strength Index (RSI) and the Stochastic (slow).

- Point 1: The RSI shows that this pair is currently over-sold and experiencing upward pressure.

- Point 2: The Stochastic (slow) shows a deep bullish cross followed by an upward cascading price movement. This suggests that there is momentum behind the current upward correction.

source:  forexyard.com