Month: December 2010

The Euro moved higher reporting the surge of 0.001% to 1.3114 on Friday’s trading session. Euro declined 0.01 percent against the British Pound to 0.8499 where the pair EUR/JPY also dropped 0.01 percent to 108.73 on Friday. The Euro is likely to find support at 1.3056 versus the greenback whereas its resistance level is expected at 1.3201 which also happens to be the day’s high for the pair EUR/USD on last week Tuesday.

The British Pound surged 0.04 percent to 127.96 versus the Japanese Yen on Friday. The pair GBP/JPY is likely to find support at 127.49 whereas the pair’s resistance level is expected at 130.49.

The Pound Sterling also advanced 0.04% to 1.5435 versus the greenback. The Euro remained under pressure due to uncertainty over euro zone’s debt situation and declined 0.10 percent to 0.8492 versus the British Pound.

The support level for the pair EUR/GBP is expected at 0.8447 whereas the pair is likely to find resistance around 0.8526 which was also the Thursday high in last week.

Pound Sterling gained 0.04 percent against the US dollar to 1.5435 and the resistance and support level of the pair GBP/USD are expected at 1.5577 and 1.5357 respectively.

The New Zealand Dollar also moved up 0.15 percent versus the US dollar to 0.7484 on Friday. The New Zealand Dollar also surged 0.10 percent versus the Australian Dollar to 1.3423 and 0.15 percent against the Euro to 1.7522 on Friday.

The pair NZD/USD is expected to find support at 0.7348 whereas the pair is likely to find resistance at the level of 0.7501.

The US dollar plunged 0.21 percent at 1.0072 versus the Canadian dollar on Friday. The support and resistance levels for USD/CAD are expected at 1.0054 and 1.0209 respectively.

About the Author

Daily forex trading news written by Rehan from DailyForexTrade.com

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

€

The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3145 level and was supported around the $1.3085 level. The common currency was poised to register its third consecutive lower weekly close.  Ratings agency Fitch downgraded Portugal’s credit rating by one notch to A+, the fifth highest level, and confirmed Portugal’s outlook is negative.  Fitch reported “The downgrade reflects an even slower reduction in the current account deficit and a much more difficult financing environment for the Portuguese government and banks than incorporated into Fitch’s previous rating and the negative outlook assigned on 24 March 2010, as well as a deteriorating near-term economic outlook.”  Traders remain extremely concerned about the sovereign debt crisis involving peripheral eurozone countries like Portugal, Spain, Ireland, Greece, and others.  Excess liquidity in the eurozone banking system remains elevated into year-end, reflecting banks’ nervousness concerning market stresses and a decreased willingness to lend.  Irish finance minister Lenihan this week said a default on senior debt would “destroy” Ireland and is not an option.  ECB member Kranjec noted “I see no danger for existence of the euro,” adding the European Union has shown a lot of “flexibility” in tackling its members’ financial problems.  The German media this week reported Germany has proposed the creation of a new independent institution to bolster eurozone members that are financially-troubled.  The German proposal would include the creation of a European Stability and Growth Investment Fund that would enhance the operations of the European Central Bank.  The new Fund would provide liquidity against collateral in the form of gold reserves or equity in state-owned companies.  In U.S. news, economic data released yesterday saw November durable goods come in at -1.3%, up from the revised prior reading of -3.1%, while the ex-transportation component was up 2.4%.  November personal income and November personal spending were up 0.3% and 0.4%, respectively, while the November PCE deflator was up 1.0% y/y.   Additionally, core PCE was up 0.1% and 0.8% y/y, below expectations.  Weekly initial jobless claims were up 420,000 and continuing jobless claims were up 4.064 million.  Moreover, November new home sales were up 5.5% to an annualized 290,000 units and the final University of Michigan consumer sentiment indicator improved to 74.5.  Euro bids are cited around the US$ 1.2995 level.

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥82.85 level and was capped around the ¥83.15 level.  Technically, the pair was poised to close the week right around the 38.2% retracement of the ¥80.25 – 84.50 range.  Some media outlets reported Japan will likely increase its reserves for conducting intervention in the exchange rates market.  Cabinet Office official Wada reported “The BoJ has pretty much done everything it can do.  It’ll probably be hard for the Bank of Japan to find more effective policy tools.  So, it will be the government’s turn to make more of an effort with policy steps…It’s strange that private banks can’t lend.  They are pouring money into government bonds even though they have sufficient funds to extend loans.  Their money should go into companies rather than government bonds.”  The Kan government today approved a record ¥92.41 trillion draft budget for the fiscal year that begins 1 April 2011.  Japan plans to issue new bonds valued at ¥44.3 trillion, a move that means new debt will likely eclipse tax revenue for the second consecutive year.  Notably, Japan’s public debt is estimated to be approximately 200% of gross domestic product, the highest level among its industrialized peers.  Finance minister Noda reported “We were able to draft the budget…while walking a fine line to achieve both improvement of fiscal health and economic growth.”  Noda also said the government fulfilled an obligation to limit new bond issuance to this year’s ¥44.3 trillion level.  Bank of Japan released its Monthly Report of Recent Economic and Financial Developments this week in which it reiterated “Japan’s economy still shows signs of a moderate recovery, but the recovery seems to be pausing,” an assessment that is very similar to its assessments in November and October.  Notably, however, the central bank upgraded its assessment of the impact from its “highly accommodative” monetary policy and reported capital spending is improving.  On a negative note, the central bank lowered its assessment of production.  The central bank also reported that it has made ¥25 trillion in asset purchases and loans as part of its ¥30 trillion stimulus program designed to enhance economic growth and overcome deflation. As expected, Bank of Japan’s Policy Board kept monetary policy unchanged this week, leaving the overnight unsecured call rate target between 0% and 0.1% and maintaining the size of its credit programs.  BoJ Governor Shirakawa reported “Volatile long-term rates can affect the economy, prices, and financial conditions by influencing borrowing costs for households and companies.”  The BoJ noted “The bank will steadily purchase various financial assets and provide longer-term funds” so that “the effects of comprehensive monetary easing spread.” Data released in Japan this week saw the November merchandise balance total decline to +¥162.8 billion from the prior total of ¥821.3 billion.  The Nikkei 225 stock index lost 0.65% to close at ¥10,279.19.  U.S. dollar offers are cited around the ¥84.60 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥108.55 level and was capped around the ¥109.05 level.  The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥127.80 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥86.00 figure. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan today as the greenback closed at CNY 6.6264 in the over-the-counter market, down from CNY 6.6450.  For the second time in one month, China failed to solicit enough demand for a bill sale as banks have less cash on account of higher reserve requirements.  People’s Bank of China today reiterated China needs to return to a “prudent monetary policy” to control its money supply and reduce price inflation.  The current cash squeeze being faced by banks renders it unlikely PBoC will hike interest rates by the end of the year.  Notably, Chinese financial institutions have lent CNY 17 trillion over the past two years.  Chinese money-market rates escalated to their highest level in more than two years this week as a result of lenders having to provision more capital as reserves.  People’s Bank of China Governor Zhou last week reported global economic turbulence is limiting the central bank’s ability to raise interest rates to counter inflation.  Notably, China’s inflation rate reached a 28-month high in November and PBoC has pledged it will transition to a “prudent” monetary policy stance in 2011.  China is said to be targeting 8% GDP growth and 4% inflation growth in 2011 along with 16% M2 money supply growth.

£

The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5475 level and was supported around the US$ 1.5415 level. Cable was poised to register its lowest weekly close since early September.  Bank of England Monetary Policy Committee member Fisher this week warned mortgage interest rates could reach 5%. Data to be released early Monday include the December Hometrack housing survey.  Data released in the U.K. this week saw November BBA loans for house purchases moderate while the October index of services were off 0.4% y/y.  Other data released in the U.K. this week saw Q3 total business investment up 3.1% q/q and 8.9% y/y while Q3 gross domestic product was downwardly revised to +0.7% q/q and +2.7% y/y.  Also, the Q3 current account deficit widened to -£9.6 billion.  Minutes from Bank of England’s December Monetary Policy Committee meeting were released this week in which there was a three-way voting split again.  MPC member Posen again voted to increase the BoE’s £200 billion asset purchase program by £50 billion while MPC member Sentance voted to increase interest rates for a seventh month.  The other MPC members voted for no change in policy but “stood ready to change the stance of policy should the balance of risks shift materially.”  BoE also reported that spare economic capacity is “substantial.”  Cable bids are cited around the US$ 1.5265 level.  The euro depreciated vis-à-vis the British pound as the single currency tested bids around the £0.8475 level and was capped around the £0.8510 level.

CHF

The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 0.9635 level and was supported around the CHF 0.9555 level.  The pair was poised to register its second consecutive lower weekly close. Swiss National Bank reported it is “ready to take the measures necessary” to counter deflation, adding to speculation it may conduct a fresh round of franc-selling intervention.  SNB today reported “Concerns about stability in the euro area have led to renewed financial market tensions.  Should these tension be exacerbated and put a strain on economic developments in the euro area, this would also have a detrimental effect on the Swiss economy.  If a deflation risk emerges, the SNB would take the measures necessary to ensure price stability.”  Earlier this week, the euro reached an all-time low vis-à-vis the Swiss franc.  The November UBS consumption indicator and December KOF Swiss leading indicator will be released next week.  There was market chatter this week that Swiss National Bank Chairman Hildebrand said the euro could fall to CHF 0.50 but the SNB later denied this comment.  Data released in Switzerland this week saw the November trade balance surplus narrow to CHF 1.93 billion from the revised prior reading of CHF 2.05 billion.  Also, the November M3 money supply indicator climbed 6.4% y/y.  Swiss National Bank member Jordan this weekend reported “There may be situations where interest rates have to be kept at a low level to ensure price stability, and where higher rates could threaten the economy.”  SNB Chairman Hildebrand reported he remains concerned over the eurozone sovereign debt crisis, adding it could lead to “devastating” consequences if the euro depreciates sharply and the franc soars.  The KOF Institute last week raised its Swiss GDP growth forecast slightly for 2011 and reported Swiss National Bank is likely to raise interest rates around the middle of 2011.  Swiss National Bank’s quarterly interest rate announcement was announced last week in which policymakers maintained the central bank’s three-month Swiss franc Libor target rate at 0.25%.  SNB’s 2011 inflation forecast was raised to 0.4% from 0.3% and its 2012 inflation forecast was reduced to 1% from the prior reading of 1.2%.  SNB expects the Swiss economy to grow about 2.5% in 2010 and around 1.5% in 2011.  The Swiss government last week raised its GDP growth forecast for 2011 to 1.5% from the 1.2% projection it noted in September.  U.S. dollar offers are cited around the CHF 0.9780 level.  The euro appreciated vis-à-vis the Swiss franc as the single currency tested offers around the CHF 1.2655 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.4885 level.

Forex Daily Market Commentary provided by GCI Financial Ltd.

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By Greg Holden

The Swiss franc’s bullish run against most of its currency counterparts may begin to see corrective movement as the year comes to an end.

The influx of positive economic data out of the United States has begun to push many traders back into riskier assets and away from traditional safe-havens. Both the USD and CHF represent safe-havens in times of trouble, but the franc has been more so since the recent debt fallout across Europe began to plague other investments.

As such, the franc may be in a position to experience some moderate corrections over the next week or two as the year comes to an end.

As we can see from the chart below, this pair continues to move within a bearish trend, but technical indicators are suggesting that we may see upward movement in the immediate future.

The MACD shows clear bullish crosses and an ascending price pattern, both of which highlight growing upward momentum and pressure.

The Relative Strength Index (RSI) has recently entered the over-sold region on this pair, which supports this bullish notion.

After yesterday’s failed attempt to sustain a price above the 23.6% Fibonacci retracement line at 0.9600, this pair now looks poised for a second attempt. Now may be a good time to go long on the USD/CHF.

USD/CHF – 8-Hour Chart

Forex Market Analysis provided by ForexYard.

© 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.

The Euro remained steady in overnight trading on Friday after hitting its lowest in last three weak versus the US dollar. Uncertainty seems to be increasing among the investors as Euro reached its record low versus the Swiss Franc due to euro zones sovereign debt situation.

However the Euro recovered in overnight trading as it reached its oversold and level and found support by traders. The latest news of revision in Fitch Ratings for Portugal and a possible downgrade to A-plus has created more negative sentiments for the Euro in the market. Standard and Poor also revised and downgraded its rating for Portugal to A minus which happens to be two notches lower than Fitch’s rating.

Economist James Ashley from RBC Capital Markets commented, “Fitch’s move was widely expected to some extent, and it was one notch only so there was not much reaction,”

Volumes have also reduced due to Christmas on the way however expectations are maintained with trading sessions after Christmas holidays.

The Euro recovered to 1.3130 against the US dollar in overnight trading in after hitting its three week low of $1.3055 on Thursday.

A trader commented, “The euro is still a sell-on-rally trade. Anything above $1.32 is worthwhile selling in my view and probably there won’t be any buyers until the low $1.30s, where we could see some Asian central bank interest.”

As compared to Swiss Franc the Euro stood at 1.2607 in overnight on Friday as compared to its all time low of 1.2440 on Thursday. Relative strength index also shows a near term oversold position for the pair EURCHF. However the aggressive buying in Swiss Franc indicates a further short term bullish rally for currency as indicated by most analysts.

About the Author

Daily forex trading news written by Rehan from DailyForexTrade.com

By Forex Signs, Inc.

The AUDCAD pair started bearish at today’s opening session; it tried to break support of 1.0114 in H1 chart but failed. After one candle stick, the pair gradually made a reversal. As of press time, the price level already increased by 40 pips. During yesterday’s trade, the pair consolidated at same time frame used earlier. The pair had a bullish breakout but seven candle sticks after, it had a bearish reversal. Albeit the movement yesterday was unpredictable, it does not seem to happen for today’s trade as the technical indicators are strongly suggesting a buy recommendation. The %R (14) has been lingering at the overbought level. It started laid flat at -80 then slowly approached -20. Further, Bill Williams’ Alligator was sleeping at the opening of the trade. It started to open its mouth after 5 candle sticks. The gator seemed very hungry as it was asleep the entire trade yesterday. It looks like the gator will be feeding throughout the entire trade as it starved for a long time.

American Session Outlook

At yesterday’s trading session, the US dollar did not move anything noteworthy as it just consolidated against its six major counterparts in the Asian and European region. However, the trade of Greenback against Swissie was still bearish as it was the entire week. The USDCHF pair fell 68 pips. The incessant increase of the Swissie might be brought about the latter being Europe’s safe haven. Meanwhile, the trade of US dollar against JPY and NZD played safe as it moved sideways throughout the entire session at H1 chart. This movement may be because Japan had a bank holiday while New Zealand GDP posted a worst-than-expected data.

For today’s session, as the Christmas draws near, it looks like the Greenback will be experiencing an upward trend. 11 economic indicators of U.S. is set to be released today, three of which are market-movers. Further, the U.S. economy is expecting a positive feedback from traders as their indicators are expecting an optimistic data as well. Core Durable Goods Order is looking at an increase to 1.7 percent while New Home Sales is predicted to appreciate to 301K from 283k. Truly, it is Christmas in the United States.

In the interim, the Canadian dollar can also expect a boost in the trade as their GDP is expecting a 0.3 percent increase from -0.1 percent.

About the Author

Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.

Source: ForexYard

Crude futures hit a two-year high Thursday, reaching above $91 a barrel as several economic data releases from the U.S offered a brighter economic outlook for the world’s largest oil consumer.

Economic News

USD – Dollar Lower in Light, Volatile Trading

The U.S. dollar fell versus most of its counterparts as data released from the U.S. signaled that the American economic recovery is strengthening, raising demand for higher yielding currencies.

Weekly U.S. jobless claims fell by 3,000 to 420,000 last week, a larger drop than expected. Core Durable Goods Orders rose in December while New Home sales showed some recovery in November, despite coming out lower than expected.

The greenback weakened 1% against the New Zealand dollar to 74.72 U.S. cents from 74.02 cents yesterday. The U.S. currency slid 0.5% versus the Australian dollar to $1.0042 from 99.90 cents. The Canadian dollar moved back towards parity with the USD as crude oil futures soared.

The dollar fell 0.8% to 82.92 yen, the weakest since Dec. 14, from 83.57 yen yesterday. It fell to $1.3130 per euro from $1.3100 euro as well.

Trading flows were light Thursday causing a volatile trading session, this trend is likely to continue today and traders are advised to take advantage of the expected market volatility.

EUR – EUR Lower vs. Major Currency Pairs

The EUR stayed in a tight range versus the U.S. dollar Thursday; the common currency remained down for this week, heading toward an 8.5% decline for the year. In June, it fell under $1.20 for the first time since 2006.The euro fell to a record low versus the Swiss franc, reaching a low of 1.2553; however, it has since rebounded slightly, currently trading at 1.2573.

The U.K. pound strengthened versus the EUR and USD after a Greek newspaper reported officials and bankers have decided on a debt restructuring plan to begin after 2013. The GBP rose to 85.04 pence per euro from 85.14 pence yesterday. The sterling gained to $1.5440, from $1.5386 yesterday, when it reached $1.5356, its weakest level since September.

With market volume and liquidity at a quarter of its normal volume, sharp moves in the currency pair may be expected.

JPY – JPY Lower as Economic Outlook Brightens

The yen fell against all of its major peers as prospects of gradual recoveries in the world’s largest economies brighten. The yen fell to 109.02 per euro from 108.74 in New York yesterday. Against the dollar it fell 0.2% to 83.06 yen, paring this week’s advance.

With very low liquidity, economic indicators drive the direction for the currencies. The Japanese currency, with its near zero interest rate, loses attraction as global growth prospects intensify and it seems less likely Japan will raise interest rates any time soon.

Crude Oil – Crude Futures Rise above $91 per Barrel

Crude Oil futures hit a two-year high Thursday, reaching above $91 a barrel as several economic data releases from the U.S. offered a brighter economic outlook for the world’s largest oil consumer. The data, along with the Energy Department’s report Wednesday that oil stockpiles fell for the third consecutive week, pushed oil prices to new highs ahead of the Christmas holiday.

Light, sweet crude for February delivery finished the week at $91.51 a barrel on the New York Mercantile Exchange, up $1.03 on the day. It rose to $91.63 earlier in the session, the highest price since October 2008.

With low liquidity and high volatility in the markets ahead of the New Year the next few trading days will be integral in seeing whether oil can hold above the $90 level.

Technical News

EUR/USD

The pair seems to be in a tight range at the moment, trading between $1.3140 and $1.3080, with most indicators in neutral territory. Waiting on a clearer direction for the pair may be advised.

GBP/USD

The pair may see some mild upward movement as a bullish cross can be seen on the 8-hour MACD with the daily RSI heading into the over-sold territory. Going long may be a good option for today.

USD/JPY

The RSI for the pair is floating in the over-sold territory on the 4- and 8-hour charts with a bullish cross evident on the daily chart’s Slow Stochastic. Traders may be advised to go long for the day.

USD/CHF

Some upward correction may be seen for the pair today as the RSI is floating in the over-sold territory on the hourly and 8-hour charts, while a bullish cross is seen on the 4-hour chart’s Slow Stochastic as well as the 8-hour MACD. Going long for the day may be advised.

The Wild Card

Crude Oil

Oil reached new highs yesterday, topping $91 a barrel; some correction downward may be in store as the RSI for the commodity is floating in the over-bought territory on the 2-, 4- and 8-hour charts, while a breach of the upper Bollinger Band is evident on the daily and 8-hour charts, indicating an imminent downward move. Forex traders may be advised to go short for today.

Forex Market Analysis provided by ForexYard.

© 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 Forex Signs, Inc.

GBPUSD continued its bearish trend, as seen on H1 chart, while price is consolidating between immediate support level of 1.5389 and immediate resistance level of 1.5434. Currently, price is testing the immediate resistance as it tries to make a bullish reversal. If price is able to make a break above the immediate resistance of 1.5493, a bullish reversal may happen. If price continues to fall breaking the immediate support it may suggest that a continuation of the bearish trend and would validate the sell bias. RSI (14) remains within neutral zone, suggesting the current bearish trend may continue.

Recent Quake Weakens Kiwi

The Kiwi is possibly looking at a downward trend against US dollar as reports show that New Zealand is experiencing a slow economic growth. The stall in their economy is due to the lagging of their housing and manufacturing sector. The lagging began when the nation’s worst earthquake in eight decades occurred last September 4. The quake measured a magnitude 7 and it shook Christchurch city. It is only now that the aftermath is felt since as indicators for the third quarter were released.

Further, the sluggish growth adds to the case for central bank Governor Alan Bollard to keep interest rates unchanged to revitalize consumer confidence from a 17-month low and shore up housing demand. As a result, the Kiwi is being pushed further down. Economists say that New Zealand’s currency might show more weakness next year.

Yesterday’s Asian session surprised traders as the three musketeers of the Asian currency rallied against Fiber and Greenback. Despite absence of economic indicators for Japan, Australia, and New Zealand, the three currencies were unstoppable in reaching a bullish sentiment. Their increases were probably because traders seek for a currency haven as the Fiber and Greenback were fighting against each other of which currency should trade higher.

For today’s session, the events of yesterday would probably just mirror as there are no indicators for tomorrow. However, any market moving event that may transpire in America and Europe might cause the Asian currencies to fall as they have been on a pedestal for the entire week already. The need for neutralization is already urgent.

About the Author

Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.

Yesterday’s Asian session surprised traders as the three musketeers of the Asian currency rallied against Fiber and Greenback. Despite absence of economic indicators for Japan, Australia, and New Zealand, the three currencies were unstoppable in reaching a bullish sentiment. Their increases were probably because traders seek for a currency haven as the Fiber and Greenback were fighting against each other of which currency should trade higher.

For today’s session, the events of yesterday would probably just mirror as there are no indicators for tomorrow. However, any market moving event that may transpire in America and Europe might cause the Asian currencies to fall as they have been on a pedestal for the entire week already. The need for neutralization is already urgent.

Strong Buy for AUDCAD pair

The AUDCAD pair started bearish at today’s opening session; it tried to break support of 1.0114 in H1 chart but failed. After one candle stick, the pair gradually made a reversal. As of press time, the price level already increased by 40 pips. During yesterday’s trade, the pair consolidated at same time frame used earlier. The pair had a bullish breakout but seven candle sticks after, it had a bearish reversal. Albeit the movement yesterday was unpredictable, it does not seem to happen for today’s trade as the technical indicators are strongly suggesting a buy recommendation. The %R (14) has been lingering at the overbought level. It started laid flat at -80 then slowly approached -20. Further, Bill Williams’ Alligator was sleeping at the opening of the trade. It started to open its mouth after 5 candle sticks. The gator seemed very hungry as it was asleep the entire trade yesterday. It looks like the gator will be feeding throughout the entire trade as it starved for a long time.

About the Author

Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.

RISK DISCLAIMER

Forex trading involves high risk. Before any trade, you should consider carefully the investment objectives and the level of risk. The data sent by mail is not necessarily real-time data or precise. Real-Forex is not liable for the losses resulting from the utilization of the data. Real-Forex (Finnocorp Trading Solution Ltd.) is not liable for losses or damages as a result of reliance on the information provided by e-mail or on the overall data, quotes, charts, signals buy / sell. It is hereby clarified that the investor must be aware of risks involved in trading in financial markets, which is a form of investment that may contain potential risks.

**Tomorrow is a holiday in the U.S. and possibly in Europe.
If the trade will be thin, we recommend not enter any trade.

**If the trade would be sparsely our recommendations will be valid beginning next week.

USD/CHF

Daily graph: http://www.real-forex.com/charts-daily/DEC2010/CHF_DAILY_241210.JPG

Generally speaking the pair is moving aside. During the 22-12-2010 session, an important support at 0.9550 was crossed down but during the 23-12-2010 session, that support was crossed back upward. During that test of the support, a bullish engulfing template was created, suggesting a soon reversal of the actual trend from down to up. We are assuming the new trend as uptrend. The template appeared is not enough to enter the opportunity to go “Long”. A confirmation trough the identification of an increasing configuration on a 1H graph is required.

Potential trade

1H graph: http://www.real-forex.com/charts-daily/DEC2010/CHF_1H_241210.JPG

The required configuration should appear when the 1H resistance of 0.9666 will be broken up. The best time to enter a trade would be after the configuration will be identified.

–        “Limit” order on “Long” position 5 pips above the given resistance, meaning at 0.9671

–        “Stop Loss” order on the last dip occurred, which is: 0.9587

–        1^st degree to take profit will be on the following resistance: 0.9722

USD/CAD

Daily graph: http://www.real-forex.com/charts-daily/DEC2010/CAD_DAILY_241210.JPG

As for USD/CHF, the pair here is moving aside as well. About a week ago, the pair started an uptrend but was recently corrected at a level of 61.8% just above the support 1.0081. According to what we see on the graph, you can determine the bearish candles as weaker than bullish candles, emphasizing the actual power of the bulls over the bears. The pair is expected to introduce the new uptrend for the pair, with the breakout of the resistance 1.0209. The trade opportunity noted here is counting about 120 pips, very attractive with a high potential profitability.

Of course, as we noticed, every trade requires a confirmation through the identification of adapted price configuration on a 1H scaled graph.

Have a nice holiday and a good week end

Real-Forex team

The iShares MSCI ACWI Index Fund ETF (ACWI) is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 340,000. Shares of ACWI were up about 0.1% on the day.