Month: June 2009

By Fast Brokers – The USD/JPY has recovered nicely along our 2nd tier uptrend line while experiencing declining volume to the downside, both encouraging developments for the uptrend.  However, the currency pair still feels the pressure from its medium-term downtrend, and is being squeezed between our 2nd tier uptrend and downtrend lines.  Meanwhile, the USD/JPY’s positive correlations are under selling pressure as it seems U.S. equities could be in for a pullback.  The Dollar is appreciating across the board, and there is no reason to believe the USD/JPY wouldn’t participate.  Investors are heading for safety with uncertainty creeping back into the market place concerning the sustainability of the global economic recovery.

Today’s economic data from Japan showed a large improvement in business conditions and outlook.  It seems Japan’s economy could finally be finding a bottom with manufacturers and exports adjusting to the concept of a weaker global aggregate demand.  Coincidentally, the positive numbers from Japan are adding to the downward momentum in the USD/JPY.  The central banks of both the U.S. and Japan have their benchmark rates hovering just above zero while the nations participate in their respective alternative liquidity measures.  Hence, any positive data from Japan combined with negative data from the U.S. results in an appreciation of the Yen against the Dollar.  Regardless, the currency pair is hanging onto our 2nd tier uptrend line, and it will be interesting to see how it react reacts to the inflection point approaching.  If the 2nd tier uptrend line fails, there’s quite a ways down to our 1st tier uptrend line.  Investors will be keeping a close eye on the S&P futures and how the futures deal with a retest of 900 should it occur.  We maintain our negative outlook on the USD/JPY trend-wise.

Present Price: 96.00

Resistances: 96.33, 96.90, 97.45, 97.58, 98.66

Supports: 95.82, 95.20, 94.45, 93.76, 93.32

Psychological: 95, 100

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither 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.

Wednesday June 24 – US Fed Reserve Announcement @ 2:15 pm EST. Expect statement on Fed’s Quantitative Easing Program. No expected change to short term interest rates.

Thursday June 25 – US 1st Quarter Gross Dommestic Product statistics released @ 8:30 AM EST. We have seen the Estimated and Revised data….now we see the Actual. Any change from the Revised figure (a 5.7% decline in 1st Qtr US GDP) could move the markets.

Friday June 26 – US Personal Income and Outlays @ 8:30 am EST. This used to be a sleepy data release that only economists watched. But there is an increasingly large group of market participants that believe that US consumers are changing their spending habits very aggressively and this could factor into future growth (or lack of growth).

Friday June 26 – US Consumer Sentiment 9:55am EST. This ties into Friday’s 8:30 data release. Is there a disconnect between what consumers are doing and what they are saying?

By: Stephen Leahy – Back Bay FX

Source: ForexYard

After depreciating consistently over the past month, the USD is now traded over 1.39 against the EUR, and over 1.64 against the GBP. This week on Wednesday, the Federal Reserve is expected to deliver an Interest Rates statement, and is widely expected to leave it on 0.25%. However, any change that might take place is prone to sow disorder in the market, and forex traders should be ready for it.

Economic News

USD – Dollar to Go Bullish on Weak Equity Market

The encouraging homes sales and manufacturing figures from the U.S. last Thursday helped boost confidence in the USD against the EUR. However, the bearish equity markets drove the USD higher last Friday. The GBP/USD began Friday’s trading at 1.6337, whereas now the pair is trading at the 1.6472 level. Additionally, the EUR/USD pair was trading as high as the 1.4000 on Friday, and it now trades at the 1.3915 level. This behavior signals some of the high volatility that the forex market has been experiencing recently.

Last Thursday’s poor unemployment figures and the first weekly U.S. equity market loss in a month are likely to play a key role in U.S. trading today and for the week ahead. Traders are advised to follow news surrounding President Obama’s economic reforms as well. Furthermore, traders should pay attention to economic news coming out of the Euro-Zone and Britain, as these factors will help determine the USD’s strength against its major currency crosses.

When looking ahead to this week, we can say that there is plenty of economic data that will affect the USD. This includes Existing Home Sales, the FOMC’s statement, the Federal Funds Rate, and Unemployment Claims. Additionally, the Dollar may go bullish if the equity market continues to fall rapidly, due to traders possibly flocking to the USD as a safe-haven. Furthermore, on Thursday U.S. Final GDP figures at 12:30 GMT are likely to play in the mind of traders’ confidence in the Dollar later on this week.

EUR – EUR Weighed Down By Euro-Zone Banking Woes

Despite the EUR/USD rate reaching as high as 1.3982 last week, it now stands at 1.3910. This comes about as the U.S. economy is currently healthier than Europe. The British economy has also been fairing well, as the EUR/GBP rate opened at 0.8536 last Thursday. However, it now stands at 0.8445, indicating a loss in confidence for the EUR since the commencement of Thursday’s trading.

As the U.S. economy leads the world in rising out of recession, the Euro-Zone isn’t so far away. Nevertheless, they have a banking system which needs radical U.S.-style reforms. This was one of the main reasons for the unstable and at times weak EUR in last week’s trading. This came about in response to the European Central Bank (ECB) warning that banks in the Euro-Zone may face up to $300 billion of losses by the end of 2010.

Analysts foresee a possible EUR sell-off for the beginning of the week. However, this process could reverse as the week goes by. Today, there is some important news coming out of the Euro-Zone. This includes the German Ifo Business Climate data at 8:00 GMT and ECB President Jean-Claude Trichet’s speech at 12:00 GMT. There is also much data coming out of the Euro-Zone throughout the days ahead. Therefore, the EUR will likely be a key player in the forex market this week.

JPY – Yen to Dominate Forex Trading This Week!

As Japan’s economy is expected to rise out of the recession faster than many analysts anticipated, we have seen some renewed strength last week for the JPY, especially vs. the USD. The reasons for this behavior are varied. However, mixed economic data releases from the U.S. does play a role in this, such as weak unemployment and inflation figures for the U.S. economy. The USD/JPY rate was as high as 97.76 last week, and is currently trading lower at 95.97

Due to the important data coming out of Japan’s economy in the days ahead, there is the potential for great volatility in the JPY. A number of figures, including the CSPI report, Japanese trade balance, Tokyo Core CPI, and All Industries Activity data are to be published this week. These will assist forex traders in getting a feel of what health the Japanese economy is in. It is reasonable to say that the JPY will have a key role in dominating forex trading this week.

Crude Oil – Crude Oil to Hit $75 a Barrel?

Crude Oil managed to hold above $70 a barrel for most of last week. This was owed to a variety of factors, such as China and Japan’s economies improving faster than originally forecast. In fact, Crude prices reached a near-9-month high last week at just over $73.20 a barrel. This was despite fears that demand for the black gold was dissipating. Top U.S. banks, such as Goldman Sachs, upgraded their forecasts for Crude Oil. They are beginning to anticipate black gold hitting $85 a barrel by year’s end.

There were, however, arguments from the other side, implicating that demand would be unable to keep up with the current price of Crude. However, since the latter half of last week, the former argument has had more strength. Trading on Friday did see Oil drop by nearly $2 a barrel to near the $70 mark, possibly owing to the bullish USD at the end of trading last Friday. If the U.S. continues to publish predominantly positive economic news, it isn’t far off to say that we may see Crude hit $75 relatively soon.

Technical News

EUR/USD

The daily chart is showing mixed signals with its RSI fluctuating in the neutral territory. However, the hourly chart’s RSI is already floating in the over-sold territory, suggesting an upward correction may be imminent. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

GBP/USD

The typical range-trading on the hourly chart continues. The price is floating in the neutral territory on the 4-hour chart’s RSI. However, the pair currently sits near the upper border of the daily chart’s RSI, suggesting a downward correction may be imminent. When the downwards breach occurs, going short with tight stops appears to be preferable strategy.

USD/JPY

The hourly chart is showing mixed signals with its Slow Stochastic fluctuating in the neutral territory. On the other hand, the bullish cross forming on the 4-hour chart’s Slow Stochastic implies that an upwards correction might take place in the nearest time frame. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

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. The 4-hour chart’s indicators do not provide a clear direction as well. Waiting for a clearer sign on the hourlies chart might be a good strategy today.

The Wild Card – Crude Oil

Oil prices dropped significantly last week and peaked at 69.50 per barrel. However, a bullish cross forming on the 4-hour chart’s Slow Stochastic implies that an upwards correction might take place in the nearest time frame. This might be a good opportunity for forex traders to enter the trend at a very early stage.

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 CountingPips.com

Canadian Retail Sales decreased in April after three straight monthly increases according to the monthly report released by Statistics Canada today. Retail sales decreased by 0.8 percent to C$33.5 billion in April following an increase of 0.3 percent in March.  The fall in Retail sales was more than expected as economic forecasts were predicting a 0.1 percent increase for the month.

Core retail sales, excluding automobile sales, fell by 0.5 percent in April following a decline of 0.3 percent in March. The decline in core sales also surpassed forecasts expecting a 0.1 percent decline.

Contributing to the slide in the retail sales numbers was a decrease in the automotive sector by 1.9 percent.  Within that sector gasoline station sales fell by 1.9 percent for the month while new car dealers sales declined by 1.8 percent.  The food and beverages stores sector saw a 1.0 percent decline while furniture, home furnishings & electronic stores fell by 0.8 percent and clothing & accessories stores decreased by 0.6 percent. Positively contributing to the monthly retail sales were increases in miscellaneous retailers stores, general merchandise stores and in building & outdoor home supplies stores.

Canadian Loonie falls in Currency Trading.

The Canadian loonie dollar has been weaker today in the currency markets versus the major currencies after the lower retail sales data. The Canadian currency has decreased versus the euro, British pound, Japanese yen, U.S. dollar, Australian dollar and New Zealand dollar.

The U.S. dollar has advanced today against the Canadian loonie as the USD/CAD pair trades at the 1.1343 in the afternoon of the US session at 3:09pm EST. The USD/CAD opened the day trading at 1.1316 at 00:00GMT according to currency data by Oanda.

The euro has increased against the loonie as the EUR/CAD trades at the 1.5828 level after opening the day at 1.5751. The loonie has declined versus the Japanese yen as the CAD/JPY trades at the rate of 84.78 yen per loonie level after opening the day at 85.35.

The British pound has jumped versus the loonie today as the GBP/CAD trades at the 1.8724 level after opening the day at 1.8488.

The Australian and New Zealand dollars have also gained ground today versus the Canadian currency as the AUD/CAD trades at 0.9140 after opening at 0.9058 while the NZD/CAD trades at 0.7301 after opening the day at 0.7231.

GBP/CAD Chart – The British Pound gaining versus the Canadian Dollar today in Currency Trading and reaching the highest exchange rate since December.

The following is excerpted from Robert Prechter’s Independent Investor eBook. The 75-page eBook is a compilation of some of the New York Times bestselling author’s writings that challenge conventional financial market assumptions. Visit Elliott Wave International to download the eBook, free.

By Robert Prechter, CMT

…The natural tendency of people to apply physics to finance explains why successful traders are so rare and why they are so immensely rewarded for their skills. There is no such thing as a “born trader” because people are born — or learn very early — to respect the laws of physics. This respect is so strong that they apply these laws even in inappropriate situations. Most people who follow the market closely act as if the market is a physical force aimed at their heads. Buying during rallies and selling during declines is akin to ducking when a rock is hurtling toward you.

Successful traders learn to do something that almost no one else can do. They sell near the emotional extreme of a rally and buy near the emotional extreme of a decline. The mental discipline that a successful trader shows in buying low and selling high is akin to that of a person who sees a rock thrown at his head and refuses to duck. He thinks, I’m betting that the rock will veer away at the last moment, of its own accord. In this endeavor, he must ignore the laws of physics to which his mind naturally defaults. In the physical world, this would be insane behavior; in finance, it makes him rich.

Unfortunately, sometimes the rock does not veer. It hits the trader in the head. All he has to rely upon is percentages. He knows from long study that most of the time, the rock coming at him will veer away, but he also must take the consequences when it doesn’t. The emotional fortitude required to stand in the way of a hurtling stone when you might get hurt is immense, and few people possess it. It is, of course, a great paradox that people who can’t perform this feat get hurt over and over in financial markets and endure a serious stoning, sometimes to death. Many great truths about life are paradoxical, and so is this one.

This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world’s foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook, part of Prechter’s NEW Deflation Survival Guide.

The following article was adapted from Robert Prechter’s NEW Deflation Survival eBook, a 60-page compilation of Prechter’s most important teachings and warnings about deflation.

By Robert Prechter, CMT

Myth 1: “War Will Bail Out the Economy”

Many people argue that war will bring both inflation and economic boom. Wars have not been fought in order to inflate money supplies. You might recall that Germany went utterly broke in 1923 via hyperinflation yet managed to start a world war 16 years later, which was surely not engaged in order to inflate the country’s money supply. Nor are wars and inflated money supplies guarantors of economic boom. The American colonies and the Confederate states each hyperinflated their currencies during wartime, but doing so did not help their economies; quite the opposite. With respect to war, the standard procedure today would be for the government to borrow to finance a war, which would not necessarily guarantee inflation. If new credit at current prices were unavailable, either the new debt could not be sold or it would “crowd out” other new debt. The U.S. could decide to inflate its currency as opposed to the credit supply. As explained in Conquer the Crash, doing so would be seen today as a highly imprudent course, so it is unlikely, to say the least. If it were to occur anyway, the collapse of bond prices in response would neutralize the currency inflation until the credit markets were wiped out. Despite these arguments, I concede that war can be so disruptive, involving the destruction of goods and the curtailment of commercial services, that the environment from the standpoint of prices could end up appearing inflationary. To summarize my view, the monetary result may not be certain, but an inflationary result is hardly inevitable.

There is in fact a reliable relationship between monetary trends and war. A downturn in social mood towards defensiveness, anger and fear causes people to (1) withdraw credit from the marketplace, which reduces the credit supply and (2) get angry with one another, which eventually leads to a fight. That’s why The Elliott Wave Theorist has been predicting both deflation and war. You cannot cure one with the other; they are results of the same cause.

Myth 2: “Deflation Will Cause a Run on the Dollar, Which Will Make Prices Rise”

This is an argument that deflation will cause inflation, which is untenable. In terms of domestic purchasing power, the dollar’s value should rise in deflation. You will then be able to buy more of most goods and services.

It is unknown how the dollar will fare against other currencies, and there is no way to answer that question other than following Elliott wave patterns as they develop. From the standpoint of predicting deflation, the dollar’s convertibility ratios are irrelevant. There may well be a “run on the dollar” against foreign currencies, but it would not be because of deflation. I think the impulse to predict a run on the dollar comes from people who own a lot of gold, silver or Swiss francs. They feel the ’70s returning, and so they envision the dollar falling against all of these alternatives. If deflation occurs, a concurrent drop in the dollar relative to other currencies would be for other reasons. Perhaps the dollar is overvalued because it has enjoyed reserve status for so long, which might make it fall relative to other currencies. If this is what you expect, what are you going to buy in the currency arena? The yen? Japan has been leading the way into the abyss. The Euro? Depression will wrack the European Union. Maybe the Swiss franc or the Singapore dollar. But these are technical questions, not challenges to deflation or domestic price behavior.

Myth 3: “Consumers Remain the Engine Driving the U.S. Economy”

Only producers can afford to buy things. A consumer qua consumer has no economic value or power.

The only way that consumers who are not (adequate) producers can buy things is to borrow the money. So when economists tell you that the consumer is holding up the economy, they mean that expanding credit is holding up the economy. This is a description of the problem, not the solution! The more the consumer goes into hock, the worse the problem gets, which is precisely the opposite of what economists are telling us. The more you hear that the consumer is propping up the economy, the more you know that the debt bubble is growing, and with it the risk of deflation.

……….

For more on deflation, download Prechter’s FREE 60-page Deflation Survival eBook or browse various deflation topics like those below at www.elliottwave.com/deflation.

• What happens during deflation?
• Why is deflation bad?
• Effects of deflation
• Deflationary spiral
• And much more in Prechter’s FREE Deflation Survival Guide.

The chances of a direct conflict between the US and North Korea are escalating. The US Navy is reportedly following a North Korean ship through international waters. Under recent UN sanctions, the US could request to board and search the vessel. North Korea would certainly not allow this to happen. Also, North Korea has promised to test a ICBM this weekend and send it over Japan into the Pacific. Supposedly the missile has the capabilities to reach Hawaii.

Either of these two events would cause enormous uncertainty in the global markets. For those clients who believe that the likelihood of either of these events happening is high, we suggest a short EUR/CHF position. normally in times of global crisis, the USD is the best safe-haven currency, followed by CHF. A short EUR/CHF position combines these two ideas since one cannot be directly long USD and long CHF in one pair.

Short EUR/CHF combines a short EUR/USD position (which has long USD as it’s denominator) with a short USD/CHF position (which is long CHF as it’s denominator). So while a short EUR/CHF position has no direct USD involved, the position is a combination of the two high probability safe-haven positions.

Stay Nimble!

Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com

In the below image, we put a EUR/USD 30 minute chart overlaid with our standard Bollinger Bands (“BB”).

We see higher lows for the last 16 hours and a fairly tight channel moving higher. The risk/reward scenario seems to be pointing towards the 1.4000 level last seen yesterday.

We suggest a Buy Limit order just below market (current bid 1.3924) at 1.3915. Our Stop Loss level order is our first support level of 1.3875 and our Target Level with this trade is 1.4000.

We are willing to lose 40 pips to gain 85.

Stay Nimble!

Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com

thanks to FX Solutions for the below image.

By Adam Hewison

We are going to be doing something a little bit different today as we analyze the forex markets. Examining the forex markets is nothing new, but we have never gone through 13 pairs of cross rates on the fly. I also show you a quick and effective way to analyze the dollar index at the same time.

In my new video I look at all the major cross rates in a way to quickly tell if you should be in or out of the market.

I am basing my forex observations on our “Trade Triangle” technology and will gladly show you how we apply them to any currency cross rate. It is a quick and easy lesson that will show you exactly what I look for when I’m going to go into a market.

See the New Video Here….

The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Source: ForexYard

The Philly Fed Manufacturing Index and a string of other positive U.S. data boosted the Dollar yesterday. This marks a turnaround for the U.S., as there is increasing optimism that the current recession will be over sooner than later. Now may be a good time for forex traders to enter the market as investors continue to profit from yesterday’s bullish Dollar.

Economic News

USD – Dollar Driven Higher By Federal Reserve Rate Outlook

The U.S Dollar went bullish versus the EUR and Yen on Thursday after a report showing the number of continuing claims filed for jobless benefits during the first week of June fell more than expected. The USD finished trading to end up 38 pips higher vs. the EUR at $1.3917, while against the Yen, the USD rose 0.9% to 96.58 Yen.

Sharply higher U.S. Treasury yields also lent support to the Dollar. Higher rates on U.S. investments compared to the rest of the world are expected make the USD more attractive versus other currencies in the short-medium term future. In the earlier trading however, the greenback weakened as traders cut bets that the Federal Reserve will raise its benchmark Rate this year to a 45% chance from 64% odds a week ago.

The Dollar traded in a range between $1.3750 per EUR and $1.4001 this week. The currency fell to a 6 month low of $1.4338 on June 3 on concern that investors will demand higher yields as U.S. debt sales surge to finance a record budget deficit.

Analysts stated that with no U.S. economic data due for release on Friday, many investors were starting to look ahead to a Federal Reserve policy meeting next week. The outcome of the Fed meeting, which commences on Tuesday, and the ensuing reaction in U.S. long-term yields are seen as key to the near-term direction of the U.S Dollar in the future.

EUR – EUR Climbs Against the CHF

The EUR jumped against the Swiss franc on Thursday to as high as 1.5144 Francs amid speculation that the Bank for International Settlements was acting on behalf of the Swiss National Bank (SNB) to defend the 1.50 Franc level, analysts said. The EUR may weaken however against the Swiss Franc should the SNB soften its stance on weakening its currency, according to analysts.

The EUR also advanced against 12 of the 16 major currencies on speculation that the European Central Bank’s (ECB) officials speaking tomorrow will signal they plan to keep Interest Rates on hold, maintaining the allure of assets in the 16-nation region. The EUR also gained for a second day versus the Pound after U.K. Retail Sales unexpectedly dropped in May for the first time in 3 months.

The European currency appreciated to as high as 0.8604 vs. the Pound Sterling, and may move higher to 90 pence in the next 3 months. Against the U.S Dollar, however, the EUR weakened to $1.3917, from $1.3955 yesterday. Investors have abandoned bets that the EUR would appreciate further after the common European currency failed to strengthen beyond $1.40.

JPY – The Yen Tumbles Versus the Major Currencies

The Japanese Yen weakened against all 16 major currencies after U.S. economic reports added to signs the steepest global slump since World War II may be starting to end. The JPY remained low against the EUR for a third day as signs the global recession is easing spurred demand for higher-yielding assets. The currency weakened to 134.43 per EUR and fell to 96.58 per U.S. Dollar. The Yen declined the most versus the Australian and New Zealand Dollars after the World Bank said the Chinese economy will expand 7.2% this year, up from a previous forecast of 6.5%.

The Japanese currency is still headed for weekly gains versus the Dollar and the EUR after U.S. reports earlier this week showed confidence among homebuilders fell unexpectedly in June, and industrial production dropped for a seventh month in May, raising concerns that any recovery by the world’s largest economy will take time. The Yen may continue to decline if there are more signs in the coming week that the global economic slump is dissipating.

Crude Oil – Crude Oil Rises on Positive U.S. Outlook

Crude Oil finished Thursday’s volatile session 49 cents higher at $72.00 a barrel. The commodity was upbeat after economic data in the U.S. raised hopes for an economic recovery. Oil prices have nearly doubled since February on signs of a potential economic recovery. However, the pace of the rally has also sparked concerns that prices do not fully reflect improvements in Oil fundamentals, and costly Crude may hurt any nascent recovery.

Oil had risen above $72 this week on a weaker Dollar and militant attacks in Nigeria, Africa’s biggest Oil producer, which disrupted supply. Investors have also pushed Oil higher by buying contracts as an inflation hedge to offset a decline in the Dollar. There is a reasonable possibility that the price of Crude will continue to rise in the coming weeks.

Technical News

EUR/USD

The pair made its bearish reversal yesterday, reaching the 1.3917 level. The hourly chart’s RSI and daily chart’s Stochastic slow indicate that this bearishness may be short lived, as the cross could go bullish again anytime soon. Entering the pair at an early stage may turn out to be a good strategy for today.

GBP/USD

There still seems to be plenty of steam left in the GBP/USD upward momentum. The MACD of the 4-hour chart and RSI of the daily chart support this upward notion. Entering the bullish trend now may be a wise choice today.

USD/JPY

The pair has gone increasing bullish recently, reaching as high as the 96.76 level. The chart’s 4-hour MACD supports a further bullish behavior for this pair, whereas the chart’s 4-hour RSI contradicts this. Entering the pair when the signals are clearer may be a wise choice today.

USD/CHF

The USD/CHF cross has been range trading between the 1.0750 and 1.0900 levels as of late. It seems that the pair’s bullish run may have run out of steam, and a bearish correction could be underway soon. This notion is supported by the RSI of the hourly and weekly charts. Going short with tight stops may turn out to be a good strategy today.

The Wild Card – EUR/NOK

This volatile pair continues to be affected by the volatile forex market. The last 2 days has seen a lot of strength in the EUR/NOK pair. The hourly chart’s Bollinger Bands and daily chart’s RSI support this trend to continue. Entering this popular trend now may turn out to be a wise strategy today.

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.