Daily Forex Analysis
USD
Yesterday, the USD fell dramatically against JPY and EUR during a highly volatile and violent session after the Shanghai stock exchange plunged almost 9%, the biggest drop in 10 years, while European equities were down about 2%.
Another factor that hurt the Dollar on Tuesday was a report showing an unexpectedly sharp drop in U.S. durable goods orders in January, adding to speculation that the Federal Reserve may cut interest rates later this year.
Add to this the unsettling talk of more central bank sales o... ( read more )
Archive for February, 2007
February 28, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
Overnight hourlies are still looking bearish as the RSI plummets beneath the 20 level while the Stochastic is at 20 as well. It is important to note that the market is now (6:30 GMT) sitting on a short term support at 1.3210 which could mean a reversal is in store.
GBP/USD
Are bears waking up from winter sleep? Well, it seems like the pair is building a powerful down move towards support at 114.50. However, today it seems as though stochasitcs are showing reason for the USD to gain some g... ( read more )
February 27, 2007 - Daily Forex Analysis
Daily Forex Analysis
USD
The USD continues losing ground against its major counterparts, although yesterday's price action was relatively narrow-ranged on the back of a thin calendar and ahead of this week's heavy flow of US data - which starts today. It seems that forex traders are not anticipating the US economic data on tap to be too dollar positive, and therefore they are repositioning themselves accordingly. Adding fuel to this USD bear's fire was former Fed chairmen Alan Greenspan. The former Fed said that given the 6 year period o... ( read more )
February 27, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The pair has tested the 1.3220 (the upper boundary of an upsloping channel in the 4H chart) and although the trend is definitely up, a negative divergence in the 4H chart's MACD suggests a possible turn. The divergence is seen on the 1H as well, where the DI- just crossed above 20.
GBP/USD
A red doji evening star on the daily suggests that we are going to see the some downside today and possibly in the upcoming days as well. Daily MACD is neutral; the 4H MACD is intersecting downsides at po... ( read more )
February 26, 2007 - Daily Forex Analysis
Daily Forex Analysis
USD
The USD was mixed against all other majors on Friday to end the week, on the back of weak US economic data and impressive data from other regions especially the Euro zone. In addition last week's Consumer Price growth was stronger than expected for the month of January which created a wave of concerns about inflationary pressures, as the pressure on the USD could continue to grow as we head into the busy data week. This week we are expecting durable goods, consumer confidence, existing and new home sales, prelimi... ( read more )