Yesterday’s forex signals fiscal news announcements ended up potent, beating expectations for the greater degree. Trading markets in Asia and Europe reacted positively obtaining higher yielding assets – equities, commodities and commodities related currencies such as CAD, AUD, MXN, and ZAR whilst adding pressure on the United states dollar. When the US traders came to work, the atmosphere soured somewhat as unrest in Middle East and Africa stimulated some risk aversion.
New high for the Canadian Dollar had been attained at 0.9684 after the major support point that held from February 2008 at 0.9710 had been breached. Now, November ’07 levels at 0.9059 will be the following major support, or around seven-hundred pips more of a feasible move lower for the USD. Silver hit 34.50 and that is the highest in the past 3 decades.
Today on tap the ADP Non-Farm Employment Change report at 13:15 GMT. Expectations are for 178,000 increase in February following 187,000 added private jobs in January. A discontent will likely create a rise in risk aversion. Also, the Fed Chairman, Ben Bernanke, will complete his testimony in front of the Senate Banking Committee. Virtually any hint on raising the interest rate in the US, unlikely, will send the USD soaring. Below is our forex signals currency trading perspectives.
EUR/USD is technically neutral to negative. A pull back to 20-day MA, or the mid Bolli band, at 1.3659 is apparently on the cards. The tightening Bolli band hints a approaching break-out. If the 1.3659 can crack, a further move lower towards the 1.3500 area may occur.
Sterling looks poor against the USD. Bearish upside down hammer print on the candlesticks yesterdays, together with the RSI and MACD trending down bodes well pertaining to strong bullish scenario for the USD. The 1st target for the GBP bears will be the mid-Bolli band at 1.6146, a break will target February 28 low at 1.6072.
After a enormous and extreme drop from 0.9958 on February 23rd to 0.9684 low yesterday, an astonishing 3% move or practically 300 pips in simply 5 forex trading days might generate some profit taking and a rebound for the USD/CAD. However, over-all framework remains bearish with the CAD bulls spotting 0.9665, the decreasing channel bottom. Seriously aggressive and patient CAD bulls are looking at a move to the November 2007 lows of 0.9059.
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