• The chart below is the GBP/CHF 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• The chart provides a very distinct bullish channel. However, the chart is touching its lowest border.
• A bearish cross on the Slow Stochastic has successfully predicted the modest bearish correction that we’re currently experiencing, which led the pair to the 1.6974 level.
• Currently, both the MACD and the RSI are on the verge of indicating a bearish reversal. If the MACD will indeed perform a bearish cross, and the RSI will drop below the 70 line (both marked in red), it will be a string sign for a significant drop.
• There are 3 consecutive support levels that can be observed at the moment. The support levels are placed at the 1.6950, 1.6800 and the 1.6650 prices. If a certain level will be breached, the pair is likely to reach towards the next support level.

source:  forexyard.com

• The indicators used are the Slow Stochastic, RSI and MACD.

• 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 bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.

• Point 4: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.

Crude Oil 4-Hour Chart

source:  forexyard.com

- It’s the primary gauge of consumer spending, which accounts for a majority of overall economic activity.

- British retail sales have stayed unchanged in the past 2 months, disappointing the Pound. This time, they’re expected to rise by 0.6%. Like in every country, this is a major release; any number will move the market.

13:30 GMT U.S Unemployment Claims

- The number of individuals who filed for unemployment insurance for the first time during the past week.

- This is the nation’s earliest economic data. The market impact fluctuates from week to week – there tends to be more focus on the release when traders need to diagnose recent developments, or when the reading is at extremes.

16:00 GMT EUR ECB President Trichet Speaks

- The president of the European Central Bank sometimes slips a worried call that shakes the markets, although he’s been rather mild in the last rate decision.

- This week, he speaks in three events: the first was on Wednesday at 8:40 GMT, the second, that focuses on monetary policy, will take place Today at 16:00 GMT is of higher importance, and the third one is about the exit strategy to the crisis, and will happen on Friday at 10:30 GMT – probably the most important speech.

- As head of the ECB, which controls short term interest rates, he has more influence over the EUR value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

source:  forexyard.com

The European currency fell 0.4% to $1.4911 vs. the U.S dollar on speculation the German economy could face a double-dip recession in late 2010 or early 2011 as extra public spending are withdrawn. The EUR currency also slid to a more than 2 week low against the Japanese yen, although later rebounding to 132.58 yen. However it was still down 0.9% for the day in volatile trading with almost 2 yen separating the day’s high and low.

The British pound depreciated for the first time in 5 days against the EUR, weakening 1% to 89.50 pence. The Pound also dropped vs. the U.S dollar 0.7% to $1.6644 today.
The Sterling fell for a 3rd day versus the U.S dollar after the Daily Telegraph said U.K. lenders are in a worse state than those elsewhere, citing the world’s largest credit-checking company. Analysts said that there are ongoing concerns about the state of the banking sector in the U.K., and that is weighing on Sterling.

source:  forexyard.com

The New Zealand Dollar was at 73.07 U.S. cents from 73.11. It has dropped 1.7 % this week. Australia’s dollar was at 91.88 U.S. cents, heading for a 1.4% weekly drop. It slid 1.2% Thursday as a drop in equities discouraged carry trades. In carry trades investors buy higher yielding assets with assets from countries with relatively low interest rates, namely Japan and currently the U.S as well. Borrowing costs are near zero in the U.S. and 0.1% in Japan while interest rates are 3.5% in Australia and 2.5% in New Zealand; this disparity attracts investors to the South Pacific nations’ assets.

Australia’s currency has risen 51% in the past 12 months against the greenback, the top performing currency against the Dollar as the Reserve Bank of Australia became the first central bank to increase borrowing costs twice this year. However, investors are becoming more skeptical as to the chances of a 3rd consecutive increase this December, putting more strain on the AUD.

source:  forexyard.com

• The technical indicators used are the Slow Stochastic, MACD, and Relative Strength Index (RSI).

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

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

• Point 3: The MACD indicates an impending bullish cross, which may signal an upward movement is going to occur in the near future.

NZD/USD 4-Hour Chart

source:  forexyard.com

We at ForexYard hope that this information has been helpful. Please feel free to contact us at any time in the future with any questions or concerns. We wish you successful trading and an enjoyable experience

source:  forexyard.com

The European currency also gained strength against the U.S dollar on speculation the Federal Reserve will keep its stimulus measures in place and ensure Interest Rates remain low. The EUR advanced on speculation that the economic recovery remains in place spurred investors to buy higher-yielding assets. The currency was trading at $1.4981, up from $1.4851 late Friday . At the same time, against the Yen the Euro-Zone currency rose to Y133.21 from Y132.26.

The European currency could garner further support as provisional purchasing managers’ indices on the Euro-Zone manufacturing and services sector sectors released at 0858 GMT showed a further improvement in the economic activity.

Market players will be watching for ECB President Jean-Claude Trichet speech, due at 13:00 GMT. The president of the European Central Bank has moved the EUR/USD in many occasions. Recently he has advocated a strong dollar. Trichet has said before that he would make sure extraordinary liquidity measures would be phased out in a timely and gradual fashion. The market remains highly sensitive to any Trichet’s comments on liquidity, his speech will move the market either way.

source:  forexyard.com

The EUR extended losses as ratings agency Standard & Poor’s put the credit ratings of four Dubai banks on negative outlook and stock market losses reached 3%. The negative outlook for the banks is due to their exposure to Dubai World, which is seeking a debt standstill. The Dubai World story has weighed heavily on stocks all day, prompting traders to cut back their dollar-funded positions.

The British pound trimmed early losses but remained 1.4% lower versus the U.S dollar at $1.64. The Sterling also slid 0.4% vs. the EUR to 90.93 pence. Concerns about U.K. bank exposure to Dubai weighed on the Pound, analysts said. There are concerns with regard to the extent of the U.K. banking sector exposure in Dubai so that is weighing on sterling. The underlying picture for Sterling was already fundamentally weak and this news adds further to the bearish sentiment.

source:  forexyard.com

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Source:ezinearticles.com