FOREXYARD Daily forex analysis

To unsubscribe click here

	17-Feb-2011
	Headlines Market Optimism Temporarily Pulls Down Safe-Havens The U.S. dollar slid against the euro following a rally in global equity markets yesterday. The rally prompted investors to turn to higher yielding assets and away from safe havens like the USD. With recent market optimism, traders may continue to see a small downward trend in the dollar as positions are unwound in exchange for riskier assets.  Start Trading  Demo Account  SuperMini Account  Standard Account  Archive  16-Feb-2011  15-Feb-2011  14-Feb-2011  11-Feb-2011  Market Trend   EUR/USD GBP/USD USD/JPY USD/CHF AUD/USD EUR/GBP Daily Trend Weekly Trend Resistance 1.3650 1.6180 84.35 0.9670 1.0110 0.8505 1.3630 1.6160 84.15 0.9650 1.0090 0.8485 1.3600 1.6130 83.85 0.9620 1.0060 0.8455 Support 1.3540 1.6070 83.25 0.9560 1.0000 0.8395 1.3510 1.6040 82.95 0.9530 0.9970 0.8365 1.3490 1.6020 82.75 0.9510 0.9950 0.8345
	Economic News
	USD
	USD Declines Following Heavy News Day
	The U.S. dollar slipped against the EUR and CHF Wednesday, erasing some early morning gains after encouraging U.S. economic data sent traders into riskier, higher-yielding assets. By yesterday's close, the greenback had fallen against the EUR, pushing the oft-traded currency pair to 1.3600. The dollar experienced similar behavior against the Swiss franc, closing at 0.9580. The producer price index (PPI) rose 0.8% last month, nearly in line with the consensus forecast of 0.9%. The manufacturing sector has been steadily growing in recent months, indicating the pace of economic recovery could be picking up. Yesterday's economic reports bolstered U.S. Treasury yields, but higher yields weren't enough of an incentive to get the active market participants to continue buying dollars. Instead, traders saw the upbeat news as a reason to search out riskier assets. U.S. stocks and crude oil were among the biggest beneficiaries of increased risk demand. Looking ahead to today, the most important economic indicators scheduled to be released from the U.S. is the CPI figures at 13:30 GMT. Traders will be paying close attention to today's announcement as a stronger than expected result may continue to boost risk appetite in the short-term.
	EUR
	EUR Bullish vs. Majors as Traders Turn to Riskier Assets
	The euro rallied broadly against most of it major currency pairs on Wednesday as U.S. stocks rose, though gains were likely temporary given doubts about the ability of euro zone members to tap bond markets. The 17-nation common currency extended gains against the U.S. dollar and closed around 1.3600. The EUR experienced similar behavior against the GBP as the pair rose from 0.8355 to 0.8436 by day's end. The EUR was affected by a U.S. stock market rally and a bearish dollar. Growth in stocks led investors to buy back into the EUR, as they looked for returns on buying commodity-linked and higher-yielding currencies in yesterday's trading. Turning to today, traders will want to pay particular attention to inflationary and manufacturing data out of the United States. Should these figures indicate further improvements in the U.S. economy, the euro could maintain its current course, and could even push towards the 1.3700 resistance level against the greenback.
	JPY
	Yen Lower vs. Major Currency Pairs
	The Japanese yen saw a very bearish trading session yesterday, losing ground against all of its currency crosses. The JPY did gain mildly against the USD, however, closing around 83.50. The yen lost almost 100 points versus the EUR, closing at 113.60; and just about 30 points versus the CHF, ending the day at 1.3020. The JPY's trends will be affected by the rallies of its primary currency pairs today. It seems that the USD and EUR are expected to continue trading volatile today, especially against the Japanese currency. Traders should keep a close look on the news coming from the U.S. and Canada as these economies will be the deciding factors in the JPY's movement today. It is also advisable for traders to follow any unexpected comments coming from key Japanese governmental figures, as this is also likely to lead to further JPY volatility.
	Crude Oil
	Oil Trading Higher after Inventories Rise Less than Forecast
	Oil prices rose to a 10-day peak on Wednesday as upbeat European and US manufacturing data reinforced optimism about economic and energy demand growth. After U.S. inventory data revealed stockpiles growing less than expected, the price for a barrel of Crude Oil jumped back above $88, where it has remained throughout today's early trading sessions. Manufacturing in the United States and Europe accelerated in December and growth in China and India slowed to a more sustainable level, helping to fuel a move by investors into commodity-link and higher-yielding currencies. Traders should focus on today's manufacturing reports from the United States as these will no doubt carry a direct impact on the supply-demand aspect of the equation for oil prices.
	Technical News
	EUR/USD
	This pair is already showing indications of a correction to yesterday's spike in value. The daily MACD reveals a bearish cross, suggesting an imminent downward movement. The weekly Stochastic (slow) supports this notion with a bearish cross of its own. Traders may want to begin pricing in a downward movement of this pair today.
	GBP/USD
	The pair has been range-trading for a while now, with no specific direction. The daily chart's MACD is providing us the only clear indication of direction with a fresh bearish cross suggesting an imminent downturn. It appears as if waiting for a clearer sign on the hourlies might be a good short-term strategy today.
	USD/JPY
	The USD/JPY experienced a bearish movement yesterday. Moreover, it seems that this trend may be gaining strength. The daily Stochastic (slow) reveals a bearish cross and a sharply descending price movement, suggesting strong bearish momentum. Going short might be a wise choice today as a result.
	USD/CHF
	The pair has recorded much bearish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, the daily chart's MACD indicates that a bullish reversal is imminent. An upward trend today is also supported by the RSI. Going long with tight stops may pay off.
	The Wild Card
	Crude Oil
	Crude Oil prices rose significantly yesterday and peaked at $88.76 a barrel. The daily chart's MACD is floating in the over-sold territory with an impending bullish cross, suggesting that the recent bullish trend is gaining momentum and may persist over the next day or two. This might be a good opportunity for forex traders to enter this uptrend at a relatively early moment and capture this remaining price action for quick profits.
	Indicators  Date  Time  Country  Event  Period  Previous  Forecast  Importance
	© 2006 by FxYard Ltd
	Disclaimer: Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This and any analysis published or received from FOREXYARD is for informational use. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in the analyses. While we try to ensure that all of the information provided is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. FOREXYARD will not be held responsible for the reliability or accuracy of the information available. The content herein is provided in good faith and believed to be accurate; however, there are no explicit or implicit warranties of accuracy or timeliness made FOREXYARD or its affiliates. The reader agrees not to hold FOREXYARD or any of its affiliates liable for decisions that are based on information from this website. FOREXYARD highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.