Tue, 16 Jun 2009 00:00:00 +0200

Return to Risk Aversion over Negative U.S Data

EUR/USD

After yesterday's downward movement, the price of this pair appears to be floating in the over-sold territory on the RSI of the 4-hour chart, signaling that there is still room for an upward correction. The recent bullish cross on the 4-hour chart's Slow Stochastic supports this notion. Going long to ride out the remainder of the bullish correction may be a wise choice today.

GBP/USD

The price of this pair has been range-trading within a bearish channel since last week and has yet to create a significant breach. Yesterday's upward movement has put the price near the upper border of its current channel, however. If the price succeeds in breaching through, forex traders may see a strong bullish movement. If it fails to breach, the movement will correct downwards within its current channel. Traders may want to wait to see if the breach occurs before setting positions today.

USD/JPY

This pair has seen a drastic downward movement over the last 24 hours which has pushed the price into the over-sold territory on the RSI of the hourly and 4-hour charts and generated bullish crosses on the Slow Stochastic on these charts as well. However, the price has just broken through a significant support level and the next target level is near 95.45. Going short with tight stops might be preferable today.

USD/CHF

After forming a clear double-top, or M formation on the hourly chart, this pair is responding typically by dropping in price directly afterwards. The downward movement appears to have room to run considering there is a fresh bearish cross on the 4-hour chart's Slow Stochastic and the price currently floats in the over-bought territory on the RSI as well. Going short may be a wise choice today.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard