As the USD shows unclear signals about where it is heading, and the EUR appears to be following the lead of the greenback, the market’s primary currencies seem to be confusing the bulk of forex traders. On the other hand, the British Pound has shown strong signs of life and Britain is scheduled to release significant economic data today which may cause the GBP to be the main subject of today’s trading.
Technical News
This pair has been range-trading between 1.4150 and 1.3750 for the past few days and doesn’t seem to have much clear direction. After a short upward movement, the Slow Stochastic on the hourly chart is signaling an impending bearish cross which means the range-trading is set to continue. Buying on lows and selling on highs might be a good choice today.
This pair shows no clear indication of direction for the moment. Nevertheless, there is one signal which does appear clearly. The Bollinger Bands on the hourly chart are beginning to tighten and the MACD on all charts is near 0, indicating a volatile movement is impending. When the price jump occurs, entering positions to ride the wave will be a wise choice.
The volatility this pair has seen recently has created a number of contradictory signals. The hourly chart shows a bearish cross on the Slow Stochastic, indicating a downward movement may be coming. Contrary to this is the bullish cross on the 4-hour chart, signaling an impending upward movement. Waiting for a clear signal might be wise today.
The consolidation trend in this pair, which began with the low price near 1.0600, has started to reach its threshold. The latest downward movement will likely be followed by a quick correction before making a significant price jump. The short term oscillators point upward, signaling the impending correction. Forex traders can benefit greatly by calling the direction of the breach and riding the wave which is sure to follow.
The Wild Card
CAD/CHF
This pair has been trading very flat these past few weeks, but has now begun to show signs of life. The MACD on the hourly and 4-hour chart shows clear bullish crosses, signaling an impending bullish move. The daily chart also has a bullish cross on the Slow Stochastic, which supports this notion. Forex traders can join this upcoming trend by entering early buy positions and riding the upcoming spike for profits this week.
Read the complete in depth forex analysis of today at our forex news center
