A look at the recent Forex Indicators from Craig Inglis, Client Education Manager, CMC Markets.
Euro/Dollar Breaks Short Term Support and Tumbles
7 June 2010
EUR/USD has broken its final short term support at $1.2110 and plummeted on Friday.
The next support level is from Feb 2006 and is at $1.1820 and below that comes $1.1630 from Nov 2005.
The MACD has posted another bearish crossover and the RSI is in over sold territory but has yet to signal any buying opportunity.
The Slow Stochastic is very close to becoming oversold but not yet, which means there could still be more selling pressure to come.
Some traders may wait for a retracement higher to see if the old broken support, now expected to act as resistance at $1.2110, will be significant. Otherwise expect $1.1820 to be the next important level of interest.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
A look at the recent Forex Indicators from Craig Inglis, Client Education Manager, CMC Markets.
Flight From Risk Sees Yen Strengthen
19 May 2010
The Dollar/Yen forex pair has developed a Head and Shoulders pattern and, with the current safe haven rush into the Yen, further downside seems possible.
The 21 and 55 SMA are close to posting a bearish cross and the MACD is firmly below the zero line.
The RSI and Slow Stochastic show plenty scope for a move lower.
The next support should be expected at ¥90.79 then potentially towards ¥89.07.
Any move above the 21 and 55 SMA would break the bearish H&S formation and a move to the upside could be expected.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
A look at the recent Forex Indicators from Craig Inglis, Client Education Manager, CMC Markets.
Cable Fails to Break Higher
5 May 2010
GBP/USD has failed to break higher and is fast approaching its support at
$1.5130.
The black MACD line has broken the zero line, usually an indication of
the start of a down trend and we are trading below both the 21 and 55
Day SMA.
The RSI and Slow Stochastic show ample scope for further down side.
Some traders may wait to see if the support at $1.5130 holds before
taking action.
Any break and close below $1.5130 opens up a move much lower towards
$1.4790.
Continued support at $1.5130 could result in a short term move higher
towards the 21 Day SMA.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
A look at the recent Forex Indicators from Michael Hewson, CMC Markets.
S+P Cuts Greek Sovereign Debt to Junk Status
29 April 2010
The decision by Standard and Poors to cut Greece's sovereign debt to "junk" status and Portugal's status from A+ to A- has sent markets into a tailspin, and thrown into doubt the ability of Greece to even fund its day to day funding operations with the European Central Bank.
Greece 2 year bonds hit more than 17% after the downgrade, inverting the yield curve, and it seems only a matter of time now before Greece defaults, and has to re-structure its debt.
The downgrade of Portugal also throws into doubt the ability of that country to finance its own debt obligations at realistic market rates, let alone contribute to its portion of the bail-out.
The US dollar and Japanese yen have gained on this risk aversion as investors pile into less risky assets.
EUR/USD - The Euro has plunged towards its lows around $1.3200 on the back of this afternoons downgrades.
It would appear that the unless something radically alters over the next few days the Euro could well test $1.3050/60, which is a 38.2% retracement of the 8 year up move from the 2000 lows at $0.8230 and the 2008 highs at $1.6020.
A break below $1.3050/60 would then open up sub $1.3000 towards $1.2750. A break above $1.3420 could see a spill over towards $1.3500.
The longer term upside resistance remains below trend line resistance at $1.3610/20 and $1.3700, last weeks highs.
GBP/USD - The pound has dropped away from its range highs around $1.5500 as the US dollar benefits from safe-haven buying after European debt downgrades this afternoon.
The bigger resistance remains the $1.5580 area which is 38.2% retracement of the $1.6875/$1.4780 down move.
On the flip side a break below trend line support at $1.5230/40 would likely re-target the April lows at $1.5120, and even $1.5000.
EUR/GBP - The Euro appears to be finding a short term base around the low this year between £0.8600/05 area.
This appears to be some sort of line in the sand preventing further Euro losses for the time being.
A break of this key level could well open up a move towards the lows in 2009 around the £0.8400 area. The Euro should find some resistance around £0.8740 on any rallies, as well as this weeks high around £0.8830/40.
USD/JPY – Increased risk aversion has sent the dollar lower against the yen breaking below support at ¥93.20. This should now act as resistance and could send the dollar towards the 22nd April at ¥92.75.
There is also trend line support at ¥92.30 from the March lows at ¥88.10.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
A look at the recent Forex Indicators from Craig Inglis, Client Education Manager, CMC Markets.
Forex Indicators - 22 April 2010
The EUR/GBP is in the grip of a steady decline that has lasted almost 2 months now.
Yesterday it broke through a short term support now expected to act as resistance at £0.8702.
Today it almost touched its next support at £0.8659.
The MACD is showing an acceleration of the downtrend and the Slow Stochastic shows room for further downside.
The RSI has just entered overbought territory but a signal to start buying again is only generated if it breaks the 30% level on the upside.
Most traders are probably expecting a move lower, towards the next support at £0.8604.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Forex Indicators', Feature by D. Jones, last update: 7-Jun-10
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