By Forex Signs, Inc.
At today’s trading session, the USDCHF pair is expected to go an upward trend. Currently, the pair at H4 chart is consolidating at resistance level of 0.9867 while support is measured at level 0.9814. An Elliot wave is presumed and the price level is trending at wave 5. Fibonacci retracement at the time of writing is 50 percent of wave 3. If price level reaches 61.8 percent of retracement, hopefully the assumption will take place thus the trend will reverse and proceed upward. Further, %R (14) is lingering at a neutral level. Signal is measured at level -54.8673. The current trend is risky because it can either go up or down. Also, the trend is most likely just a correction because the market is just cooling from yesterday’s extreme bullish momentum. Meanwhile, the MACD (12,26,9) is suggesting that market will turn bullish after 3 candlesticks at H4 chart. This assumption is based on historical data from recent trading sessions.
EURGBP In Bullish Correction
The EURGBP currency pair failed to continue its bearish momentum from yesterday, with price falling to a low of 0.8361 but closing at 0.8389. Early in the Asian session, price is out of the bearish channel from yesterday and has formed a bullish channel with price testing the 0.8408 level. As of this writing, price is consolidating between immediate support level 0.8404 and immediate resistance level 0.8413. A break above the resistance level testing 0.8417 would confirm a bullish trend in the short term but a break below the support level testing 0.8394 would suggest this is just a bullish correction. RSI (14) in the short term and medium term shows price in neutral territory but if price remains in the bullish channel and breaks above 0.8417 it might sustain its current bullish trend.
Strong Unemployment Claims Report May Strengthen the Greenback
For the upcoming American session, a decreasing unemployment claims report may strengthen the greenback against other major currencies, as economists predict this indicator to dip to 426K. Unemployment benefits rose last week to 436K which was 11K higher than predicted, but the continuous drop in the four week moving average to a fresh two-year low suggests a recuperating labor market while Democrats are hoping that the measure extending jobless benefits beyond December 1 of this year would increase economic growth. Several economists said the plan could boost growth from a half to a whole percentage point next year, cut unemployment and lessen demand for the Federal Reserve to boost its bond-purchasing stimulus program.
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.
