Heavy Decilne in Crude Oil Prices Spark Bullish Trend in Dollar Trading.

Economic News

USD

Will a Bearish Correction Take Place?

EUR

Weak EUR Continues to Support The USD Rise.

JPY

Gross Domestic Product Data On Tap.

Crude Oil

Markets Focuse on China Demand.

Technical News

EUR/USD

After a very sharp drop during yesterday's session which took the pair on a dip of 150 pips, there is a certain consolidation around 1.4880. 4 hour chart's Slow Stochastic shows a negative slope and indicates a possible continuation of the bearish trend. If the pair will breach the 1.4800 level, we may expect another bearish drop to follow the breach.

GBP/USD

The 4 H chart indicates that there is still room for this pair to reach new lows, particularly after this pair breached the key 1.9300 support level 4 days ago. Both the RSI and Momentum are negative indicating that this pair may continue its bearish rampage. However the dailies indicate that the cable is deep into the overbought territory, so it may be a good time to begin pairing off some of those short positions.

USD/JPY

This pair is still in the midst of a steady uptrend which is not yet showing any sign of leveling out. Daily chart's RSI and Momentum are still positively sloped indicating that there is still plenty of steam left in this bullish move. The 4 hour chart is still in a bullish formation, and it looks as if the pair is heading toward 111.00 again. A preferable strategy might be going long for the short run.

USD/CHF

The pair continues its nonstop bullish journey overlooking every possible resistance level and shows no signs of stop. All oscillators are very bullish and the trend appears to have more room to run even on the daily level. Being on the long side appears to be a wiser move for today.

Source: FOREXYARD