Economic News Weekly Archive

Daily Technical News -May 16, 2008

EUR/USD

The daily chart is showing that the pair still does not have a distinct direction, although it consolidates around the 1.5500 and appears to be accumulating momentum ahead of the next break. The 4 hour chart is showing moderate bullish momentum, however the hourlies and the daily charts do not show a distinct direction. Forex traders are advised to wait for clearer signs on the hourlies before entering the market.

GBP/USD

The moderate bearish price movement continues within the bearish channel which still has yet to be breached. The daily chart is showing a strong bearish cross, and the 4 hour chart is also slowly joining the bearish notion. The RSI is floating near the 50 level and the Slow Stochastic is pointing to the continuation of the bearish movement. Next testing point should be around 1.9650. Going short appears to be preferable today.

USD/JPY

After the bullish breach through the daily channel accumulated its momentum, the pair has returned to its bearish trend. Currently, there is an accurate narrowing bearish channel on the daily chart. The Slow Stochastic is indicating that the chances of a bullish breach are quite slim and that the bearish momentum still has steam in it. All indications are that there is room for further downward movement and the preferred strategy today will be to go short on dips.

USD/CHF

After touching a base at 1.0486, the pair now consolidates a bit higher at 1.0500. All oscillators show that the bearish momentum will probably continue. The Slow Stochastic of the 4 hour chart is showing no crosses in the horizon, and the bearish momentum appears to be intact. The RSI and Momentum are negatively sloped. This pair is still trending downwards and there are no imminent indications of a reversal. Therefore traders can maximize profits by entering a steady short position.

Daily Technical News -May 15, 2008

EUR/USD

The pair's bullish move is approaching the testing point of 1.5500 which is a key Fibonacci level of the entire bearish corrective move. The momentum is quite bullish and if a breach through the key level occurs, we might see the pair generate fresh momentum with a target price of 1.5580.

GBP/USD

There is a very distinct flag forming on the 4 hour chart, as the cable now approaches the upper level close to the tip of the flag. The local momentum within the flag is moderately bullish yet a very strong cross is imminent on the daily chart, which indicates that the bearish move might return shortly with strong steam.

USD/JPY

The pair is in the midst of the fifth consecutive day of appreciation and according to the daily chart there is still much more room to run. The hourlies are supporting the bullish notion, and it appears that going long might be the preferable strategy today.

USD/CHF

The pair has been ranging for a while now after the strong bullish move, and it appears that today the local momentum might be moderately bearish. Although the signal is not strong the pair might have a local target at 1.0450, which might make it feasible for forex traders to go short with very tight stops.

Daily Technical News -May 14, 2008

EUR/USD

The momentum created by the bullish breach through the channel has diminished and the pair now floats above the upper barrier of the channel. The daily RSI is showing fresh bullish momentum and it appears that testing the 1.5550 level is imminent.

GBP/USD

The bearish momentum continues with full steam, as the cable now floats around 1.9430, which is the bottom barrier of the channel. The Slow Stochastic of the daily chart is showing that a breach through the bottom level will unleash a very strong additional bearish move with a target price of 1.9350. Going short appears to be the right move today.

USD/JPY

There is a very clear bullish pattern on the daily chart after a local attempt to correct down has accumulated energy. The Slow Stochastic is showing a bullish cross which sharpens the notion that the trend is back. Going long appears to be the preferable choice today.

USD/CHF

Range trading with no distinct breaking direction continues. The daily oscillators are floating in neutral territory, as the hourlies show a very moderate bullish heading. No chart shows a strong enough signal, and staying out of this one today might be wise.

Daily Technical News -May 12, 2008

EUR/USD

There is a very interesting bearish channel forming on the 4 hour chart as the pair now moves down within the channel. The Slow Stochastic is showing a strong bearish cross, as the RSI confirms. It appears that the pair is heading 1.5310 and going short might be a preferable strategy today.

GBP/USD

The cable is floating at the bottom section of the bearish channel on the daily chart. The Slow Stochastic has a bullish cross forming which indicates an upcoming potential reversal move. Going long with very tight stops might be the right way to go today.

USD/JPY

The attempt to breach through the bottom section of the bullish channel on the daily chart has failed. The 4 hour chart is showing fresh bullish momentum on the Slow Stochastic and RSI. Hourly Oscillators are indicating that the Momentum is now bullish and that going long might be wise today.

USD/CHF

The 4 hour chart is showing that the pair is floating in a range after the strong bullish momentum from the channel break was done. The daily chart is showing moderate bullish momentum, and traders should wait for a stronger signal before jumping into the bullish trend.