FOREXYARD Daily forex analysis - Market Volatility Expected to Continue Today as Non-Farm Payrolls Awaits

Economic News

USD

Dollar Reaches 9-Month High against the Euro

EUR

Euro Tumbles as Interest Rates Remain at 1.00%

JPY

EUR/JPY Drops to an 11-Month Low

OIL

Crude Oil Drops to $72.40 a Barrel

Technical News

EUR/USD

The weekly chart shows a strong bearish trend with no signs of slowing. Both the 7-day and 14-day Relative Strength indicator are trading sharply below the 30 level and have not yet made a move to rise. The price has broken its 50% retracement level from the previous bullish trend at a price of 1.3746 and now could fall to the 68% retracement level to 1.3296.

GBP/USD

The daily chart displays a downward sloping MACD histogram, indicating the momentum of the pair is moving lower. The sharp downward trend has arrived at the significant support level of 1.5715. The previous bearish move ended at this price level. If the pair is able to breach this support line, we could see the price move lower to the next significant support level of 1.5350.

USD/JPY

The weekly chart shows a significant bearish trend that may have room to extend. The MACD shows a potential bearish cross forming with a downward sloping histogram, hinting at a further lower price move. The price move began at the upper border on the Bollinger Band and has since crossed the 20-day moving average line. This shows the potential for further price declines, perhaps to the lower Bollinger Band at a level of 87.30.

USD/CHF

The strong bullish trend shown on the 4-hour chart may now be overbought and those who were long may want to trip their exposure. The 4-hour shows a bearish cross has formed on the Slow Stochastic Oscillator, indicating the potential for price move lower. The Momentum Oscillator has reached the upper boundary and has begun to turn lower, supporting the potential lower price move. The Relative Strength Index has moved into the overbought region but has yet to break the rising trend line or the upper boundary. Traders may want to wait for the break of the 70 line to close their long positions or go short on the pair.

Source: http://www.forexyard.com/