Month: June 2010

By GCI Forex Research

Fundamental Outlook at 1400 GMT (EDT + 0400)

€

The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2175 level and was capped around the $1.2275 level.  North American dealers lifted the common currency from its intraday lows.  European Commission President Barroso called for the establishment of an independent European credit ratings agency.  Iran’s central bank today reported it is selling €45 billion in reserves for U.S. dollars.  Three-month U.S. Dollar Libor loans rose to 0.5375% today from 0.53625% yesterday.  Its recent high was 0.53844% – reached on 27 May – and this was the highest level since 6 July 2009.  Libor has more than doubled in 2010 on account of the deteriorating credit outlook for banks and the European sovereign debt crisis.  European Central Bank member Noyer reported the current EUR/USD rate is “by no means unusually low.” Spanish Prime Minister Zapatero said he will approve a labour market rule change on 16 June and also noted financial markets are having a “serious difficulty.” Greece reported it is establishing a holding company to help sell its state assets and finance minister Papaconstantinou reported Greece will accelerate privatizations.  Data released in the eurozone today saw EMU-16 producer price inflation up 0.9% m/m and 2.8% y/y.  In U.S. news, data released today saw MBA mortgage applications decelerate to +0.9% while May Challenger job cuts were off 65.1% y/y.  Also, April pending home sales were up 6.0% m/m and 24.6% y/y.  Philadelphia Fed President Plosser said Fed policy will be impacted by the European Union financial crisis.  Euro offers are cited around the US$ 1.2620 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥92.20 level and was supported around the ¥90.90 level.  The major news in Japan overnight was the resignation of Prime Minister Hatoyama over his handling of the U.S. military base relocation on Okinawa.  A successor has not yet been named but one possibility receiving a lot of attention is finance minister Kan.  The market impact will probably be limited over the long-term as Japan does not have much room to issue more debt.  If Kan becomes the new Prime Minister, it is possible that Vice finance minister Noda will become the new financial minister.  Lower-house elections are forthcoming and the Democratic Party of Japan has a tenuous grip on power.  Bank of Japan sources indicated the central bank may lend at least ¥1 trillion to commercial banks under its new loan program, details of which were announced in May.  Japan continues to suffer from moderate deflation that monetary policy and fiscal policy have been unable to resolve.  Data released in Japan overnight saw the May monetary base up 3.7% y/y and data to be released tonight include Q1 capital spending.  The Nikkei 225 stock index lost 1.12% to close at ¥9,603.24.  U.S. dollar offers are cited around the ¥96.85 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥112.70 level and was supported around the ¥111.00 figure.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥135.40 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥79.70 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8298 in the over-the-counter market, down from CNY 6.8306.  Former People’s Bank of China adviser Fan Gang reported China needs to implement local government debt quotas.  Many dealers believe China faces a massive property bubble and needs to rein in further housing speculation. PBoC adviser Li today estimated China’s mainland inflation may reach 3.7% this year, noting China is “lightly overheating.”  PBoC Governor Zhou reported China has “promptly” curbed its economic downturn.

£

The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.4550 level and was capped around the $1.4770 level.  Bank of England Governor King said the system must seize the opportunity for reform and banks should not be permitted to be “too big to fail.”  King reiterated support for the BoE’s policy framework, reporting “Despite its volatility, inflation remains low by historic standards, and on track to meet the target in the medium term. The framework has proved resilient to the stress of the financial crisis.  It guided our monetary decisions going out into the crisis, and it will guide them coming out of it.”  Data released in the U.K. today saw April net consumer credit decline to -£100 million from the revised prior reading of +£100 million while April net lending secured on dwellings printed at £500 million, up from the prior reading of £200 million.  April mortgage approvals grew marginally to 49,000 and the M4 money supply was up 0.0% m/m and 3.3% y/y.  Finally, May PMI construction improved to 58.5.  Cable bids are cited around the US$ 1.4220 level.  The euro appreciated vis-à-vis the British pound as the single currency tested offers around the £0.8375 level and was supported around the £0.8280 level.

CHF

The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1600 figure and was supported around the CHF 1.1525 level.  Data released in Switzerland today saw April retail sales up 1.3% y/y, down from a revised 4.0% in March.  Swiss National Bank member Leuthard on Friday reported  the SNB is interested in a “stable euro,” adding the central bank’s euro reserves have risen to 52%.  SNB has undertaken significant franc-selling intervention this year to address the depreciation of the common currency.  U.S. dollar bids are cited around the US$ 1.1420 level.  The euro lost ground vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4120 level while the British pound lost ground vis-à-vis the Swiss franc and tested bids around the CHF 1.6860 level.

Forex Daily Market Commentary provided by GCI Financial Ltd.

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DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By CountingPips.com

The U.S. dollar has been mixed in forex trading today against most of the major currencies while the U.S. stock markets have rebounded from a down day on Tuesday. The dollar has been gaining ground today versus the Japanese yen while also making slight gains against the euro, British pound and the Swiss franc. The dollar has fallen against the Canadian dollar and has traded virtually unchanged against the Australian and New Zealand dollars compared to the day’s opening exchange rates.

The US stock markets, meanwhile, are having a positive session today with the Dow Jones gaining by over a 100 points, the Nasdaq increasing approximately 35 points and the S&P 500 up by over 15 points at time of writing.  Oil has edged higher by $0.46 to trade at the $73.04 per barrel level while gold has declined by $4.50 to level at $1,220.70 per ounce.

Economic data out of the U.S. showed that pending homes sales rose by more than expected and for the third straight month in April, according to the monthly report released by the National Association of Realtors (NAR) today. The NAR report showed that pending home sales contracts signed by buyers grew by 6.0 percent in April following March’s 7.1 percent revised increase and February’s 8.3 percent advance. On an annual basis, pending home sales were 22.4 percent higher than the April 2009 sales level.

Helping to boost the housing sales data through April was the U.S. government tax credit that was set to expire at the end of April and provided tax incentives for certain buyers up to $8,000. The month’s sales increase was better than market forecasts that were expecting an increase of approximately 5.0 percent for the month.

NAR chief economist Lawrence Yun commented on the tax boost saying, “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales.” Yun also expressed hope for a housing market recovery stating, “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs”.

The pending home sales index in the Northeast increased by 29.5 percent in April while the Midwest saw a gain by 4.1 percent. Sales in the West rose by 7.5 percent while sales in the South decreased by 0.6 percent for the month.

On an annual basis, all four areas were above the April 2009 sales level with the Northeast showing an annual gain of 24.5 percent, the Midwest showing a 17.9 percent annual rise, the South showing a 31.3 percent increase and the West showing a 12.0 percent annual advancement.

By Fast Brokers – Gold is wrestling with its psychological $1225/oz level as FX markets fluctuate.  Gold managed to consolidate yesterday despite sizable volatility in the risk trade.  After the EUR/USD dropped beneath May lows, the FX risk trade experienced a solid broad-based rally in reaction to a large increase in U.S. construction spending.  However, U.S. equities faded late and the EUR/USD got sucked back into its downward momentum since an improvement in construction spending isn’t enough to turn the tide considering the strength of global headwinds.  Japan joined the fray today after Hatoyama announced his resignation.  Political instability in Japan has dented the yen’s safe haven status for the near-term.  Hence, investors have fewer preferable investment vehicles during times of heightened uncertainty and this should benefit gold.  That being said, it’s difficult not to be positive on the precious metal over the medium-term considering its safe haven status and inclination to exhibit a negative correlation with the dollar during risk rallies.  Attention should remain on the EU as investors wait for the next shoe to drop concerning the union’s fiscal crisis.  Investors will also be looking at U.S. pending home sales to see if America’s housing market is still stabilizing.

Technically speaking, gold faces technical barriers in the form of intraday and 5/17 highs.  Additionally, the psychological $1250/oz level should serve as a solid technical barrier should it be reached.  As for the downside, gold has multiple uptrend lines serving as technical cushions along with 6/1 and 5/28 lows.  Furthermore, the psychological $1200/oz area now becomes a technical cushion.

Present Price: $1223.41/ oz
Resistances: $1225.20/oz, $1227.63/oz, $1229.56/oz, $1232.22/oz, $1235.19/oz
Supports:  $1221.69/oz, $1219.16/oz, $1216.02/oz, $1212.52/oz, $1210.36/oz, $1208.18/oz
Psychological:  $1200/oz, $1250/oz

(click chart to enlarge)

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither 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 experienced a solid pop this morning after news spread that Hatoyama is stepping down after polls showed is approval rating fell below 20%.  Upper house elections are only a month away and it seems Hatoyama is trying to salvage some of the momentum gained by the DPJ last year.  Although the yen declined in reaction to the news, gains in the USD/JPY have been muted thus far and the currency pair is presently trading off of intraday highs.  Finance minister Kan is rumored to be Hatoyama’s successor and investors are looking at this possibility in a favorable light due to Kan’s fiscal conservatism.  Hence, we’ll have to see how the situation plays out.  Either way, the next few trading sessions could prove to be volatile for the USD/JPY.  Japan will be relatively quiet on the data wire throughout the rest of the week, meaning psychological should be in the driver’s seat along with upcoming U.S. employment data.  Meanwhile, investors should keep an eye on the news wire for any new developments regarding China’s real estate market or the EU’s fiscal crisis.  Even though Hatoyama’s resignation is certainly a major development, attention could shift to China and the U.S. rather quickly considering the amount of news flowing around these days.

Technically speaking, the USD/JPY still faces multiple downtrend lines along with intraday, 5/19 and 5/18 highs and psychological 92 level.  As for the downside, the USD/JPY has technical supports in the form of multiple uptrend lines along with 6/1 and 5/26 lows.  Additionally, the highly psychological 90 level should serve as a solid technical support should it be tested.

Present Price: 91.45
Resistances: 91.53, 91.65., 91.80, 91.96, 92.11, 92.25
Supports:  91.29, 91.13, 91, 90.86, 90.74, 90.63, 90.52
Psychological:  .90, .92, May lows

(click chart to enlarge)

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither 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 Cable has outperformed over the past 24 hours after investors reacted positively to a large increase in U.S. construction spending.  The figure yielded a bounce in the risk trade across the board and the Cable seemed to benefit the most.  With negative news emanating from China and the EU the Cable has started to look more attractive as investors search for places to put their money.  Prime Minister Hatoyama resigned today, denting the Yen’s safe haven status.  This could benefit the Pound over the near-term due to few investment options for investors.  The UK’s manufacturing PMI registered a solid reading yesterday, allowing the Cable to rise amid a lack of news flow from Britain.  The UK will release its construction PMI and net lending to individuals today, and positive readings from both of these data points could help buoy the Cable.  However, attention will likely remain focused on the EU along with U.S. pending home sales data.  Psychological forces are still in the driver’s seat, meaning investors should keep an eye on the news wire for any developments regarding China’s real estate market or the EU’s fiscal crisis.  Meanwhile, the EUR/USD still seems to be on a downward trajectory, and further deterioration in the currency pair could drag the Cable lower.

Technically speaking, the Cable has been able to build off of the base establish from May lows and it will be interesting to see how long this pattern lasts.  The Cable has supports in the form of the psychological 1.45 level along with 5/28 lows.  As for the topside, the Cable still faces multiple downtrend lines due to the extent of its May crash.  The Cable also faces barriers in the form of 5/13 and 5/12 highs.  Additionally, the psychological 1.50 area could serve as a strong technical barrier should it be tested.

Present Price: 1.4671
Resistances: 1.4736, 1.4758, 1.4789, 1.4822, 1.4850, 1.4875
Supports: 1.4667, 1.4645, 1.4626, 1.4606, 1.4567, 1.4534, 1.4506
Psychological: 1.45, 1.50, May 2010 highs and lows

(click chart to enlarge)

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither 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 EUR/USD continued its slide yesterday, breaking below May lows before bouncing after the risk trade reacted positively to America’s data set.  U.S. construction spending surged, giving investors hope that America’s economic recovery is becoming entrenched.  We saw a strong intraday rally in most major dollar pairs, though the EUR/USD’s upward momentum has faded and the currency pair is gravitating back towards 1.22.  The level of uncertainty concerning the EU hasn’t changed and investors are likely just waiting for the next ball to drop. The EU will be relatively quiet on the data wire today, leaving the markets up to U.S. pending home sales and psychological forces.  Speaking of which, it will be interesting to see how Hatoyama’s resignation affects the FX markets as a whole.  Political instability in Japan could dent the risk trade and drag the EUR/USD lower.  Also, investors should keep a close eye on the news wire for these days it is wises to expect the unexpected.

Technically speaking, the EUR/USD faces technical barriers in the form of mounting downtrend lines along with 6/1 and 5/28 highs.  Additionally, the 1.25 level could serve as a strong resistance should it be tested.  As for the downside, yesterday’s break below May lows could prove to be an important technical event for the near-term.  The EUR/USD has supports in the form of 6/1 lows and the highly psychological 1.20 area.

Present Price: 1.2235
Resistances: 1.2251, 1.2268, 1.2284, 1.2304, 1.2320, 1.2344, 1.2373
Supports:   1.2232, 1.2221, 1.2208, 1.2196, 1.2176, 1.2150, 1.2120
Psychological: June 2010 lows, March 2006 lows, 1.22, 1.20

(click chart to enlarge)

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither 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 Forex Yard – Following last night’s news that the Japanese Prime Minister will be resigning, the Yen has continued to fall against its major counterparts in morning and afternoon trading. The U.S. Dollar has made considerable gains on the Yen, and is currently up over 100 pips from this morning alone. Currently, USD/JPY is trading around the 112.65 level. Despite the sovereign debt issues that have been plaguing the Euro-zone as of late, even the Euro has been able to move up against the Yen. Since this morning, EUR/JPY has increased from 111.49 to its current level of 112.55.

With regards to the rest of the day, traders will want to pay attention to the U.S. Pending Home Sales report set to be released at 14:00 GMT. Analysts are forecasting a slight drop in home sales from last month. At the same time, overall growth in the U.S. housing sector means that if the indicator comes in at the forecasted 4.9%, the greenback should make gains on its major counterparts.

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.

By Fast Brokers – The Aussie is sinking back towards 6/1 lows after Australia’s GDP printed a basis point below analyst expectations.  This adds onto yesterday’s discouraging building approvals figure in showing that the RBA’s rate hikes are cooling Australia’s economy.  Hence, the central bank may be less inclined to raise rates next month, especially considering present instability in the EU.  Meanwhile, the Shanghai Composite is down another -1.6% right now and is heading towards a test of its psychological 2500 level.  Hence, fears of a China slowdown are still weighing on equities and could also drag the Aussie lower due to the interdependence of the two economies.  The EU data wire will be relatively quiet today, leaving U.S. pending home sales in the spotlight.  Additionally, investors should watch out for any new developments in the EU regarding its fiscal crisis.  Australia will release its trade balance data tomorrow and this should give investors a broader picture of the state of Australia’s economy.  Should the trade balance reveal a slowdown in export demand, this could weigh on the Aussie further since Australia is reliant on demand for its natural resources.

Technically speaking, the Aussie still faces multiple downtrend lines along with 6/1 and 5/28 highs.  As for the downside, the Aussie has technical cushions in the form of 5/27 and 5/25 lows.  Additionally, the psychological .82 area could serve as a solid technical cushion should it be tested.

Price: .8317
Resistances:  .8332, .8343, .8356, .8374, .8390, .8410, .8432
Supports:  .8307, .8278, .8260, .8242, .8223, .8202, .8187
Psychological:  .85, .80, May lows

(click chart to enlarge)

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither 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 Russell Glaser – The Cable has bounced back from its low point at the height of the Greek fiscal crisis and the price is closing in on a significant resistance line that coincides with a Fibonacci retracement level. This may be a point for the pair to reverse and continue its long term bearish trend.

The daily chart below shows the long term bearish trend for the GBP/USD that began mid November. A downward sloping trend line takes into account all the price action for this move.

As the price moves higher, the price approaches the resistance level of 1.4800 (R1). This is the bottom price for the months of February and March. The price also is close to the 23.6% Fibonacci retracement level from the long term bearish trend.

The combination of the resistance line and the Fibonacci level makes this a significant price barrier. As such, we may expect the pair to bounce off of this price and resume the long term downward price movement.

The first price target is the late May highs at 1.4600 (S1).

The second price target is the swing low on the daily chart at 1.4230 (S2).

A protective stop (not shown) should be placed at the price level of 1.4915 to maintain a profit to risk ratio of roughly 2:1.

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.

Source: Forex Yard

Continuing market uncertainty and Euro declines helped support Gold prices as investors turn to the metal as an alternative safe haven investment. Gold levels were further supported by positive economic data from the U.S on the one hand and manufacturing concerns from China on the other. Chinese growth concerns are adding to the uncertainty regarding the global economic recovery, pushing investors to the metal as an alternative investment.

Economic News

USD – USD Remains Strong as Euro-Zone Uncertainty Persists

The Dollar advanced slightly against most of its rivals Tuesday, supported by solid U.S. economic data and while concerns over the Euro-zone sovereign debt crisis persist. The Institute for Supply Management report Tuesday came in at 59.7, from 60.4 in April. The result was better than the 58.7 expected by economists. A reading over 50 indicates growth.
The Dollar is currently at 91.63 Yen from 91.18 last night. The EUR/USD pair is currently trading around $1.2250, after dropping to a 4 year low of $1.2110 in European trading Tuesday.
The Bank of Canada raised its key interest rate from a record low yesterday, the first Group of Seven central bank to do so since July 2008. However, the Canadian Dollar fell following the news, as the bank indicated in the accompanying statement that caution is needed with any future rate increases. Late Tuesday, the U.S. Dollar was stronger, at C$1.0541 from C$1.0433 late Monday.

EUR – EUR Recovers from a 4 year Low

The EUR dropped to a 4 year low Tuesday on concerns that the Euro-Zone debt crisis could affect the global economic recovery. The EUR later recovered after the release of better than expected U.S economic data though the common currency still ended lower against the Dollar.
Late Tuesday, the EUR was at $1.2236 from $1.2304 late Monday; it dropped overnight as low as $1.2110, its lowest level since April 2006. The EUR is at 112.33 Yen. The U.K. Pound rose to $1.4730. The U.K Pound rose against the Dollar on development reports from Prudential PLC’s planned $35.5 billion takeover of AIG’s largest Asian life-insurance.

JPY – JPY Declines as Prime Minister Resigns

The Yen fell against all of its major counterparts in Asian trading today after Prime Minister Yukio Hatoyama announced his resignation. The political uncertainty reduced the Yen’s safe heaven appeal. Meanwhile, The New Zealand Dollar gained on expectations its central bank will increase the benchmark rate from a record low this month.
The Yen slid to 91.60 per Dollar from 90.94 yesterday in New York. The Japanese currency fell to 112.25 per EUR from 111.22 yesterday. The kiwi rose 0.4 % to 67.94 U.S. cents. The Australian Dollar rose to 83.73 U.S. cents after falling in early trading Tuesday as the central bank kept interest rates unchanged.

Crude Oil – Crude Falls on Concerns Regarding Global Economic Recovery

Crude Oil Dropped after a volatile session Tuesday on concerns that the global economic recovery may be stalling. Oil declined as China’s purchasing manager’s index, a leading indicator for the country’s manufacturing sector, fell to 53.9 in May from 55.7 in April. China’s factories account for a large portion of world-wide demand for energy and other commodities.
Light, sweet crude for July delivery on the New York Mercantile Exchange fell $1.39, or 1.9%, to settle at $72.58 a barrel.

Technical News

EUR/USD

The EUR/USD has gone increasingly bearish in the past month, and currently stands at the 1.2210 level. The 4-hour chart’s Slow Stochastic indicates this currency cross may fall further today. However, the weekly chart’s RSI signals that a bullish reversal may take place today. Entering the pair when the signs are clearer seems to be the wise choice today.

GBP/USD

The GBP/USD cross experienced a bullish trend yesterday. However, it seems that this trend may be coming to an end. The RSI on the 4-hour chart shows the pair floating in the overbought territory, indicating that a downward correction could happen soon. Going short with tight stops might be a wise choice.

USD/JPY

The 4-hour chart is showing mixed signals with its RSI fluctuating in neutral territory. However, there is a bullish cross forming on the daily chart’s Slow Stochastic, indicating a bearish correction might take place in the nearest future. Going short might be a wise choice.

USD/CHF

The pair has been range-trading for a while now, with no specific direction. The Daily chart’s Slow Stochastic is providing us with mixed signals. All oscillators on the 4- hour chart are also not giving us a clear indication. Waiting for a clearer sign on the hourly charts might be a good strategy today.

The Wild Card

GBP/CAD

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 Forex traders have the opportunity to wait for the downward breach on the hourly chart 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.