Candlestick Are Getting Higher

www.sunbirdfx.com Another day of uncertainty went through Wall Street, as the investors were disappointed by the core retail sales, but encouraged by the Empire State Manufacturing Index. Today they will focus on the FOMC meeting minutes and building permits, as bad news might cause sharper declines. We keep seeing bullish reversals during the trading session, which means that there are buyers who want to take advantage of the recent declines, which might cause a bullish reversal eventually. However, it seems that a break-down of the current week's low will make everybody believe that a downtrend movement has begun. USD/JPY The USD reached the support at 79.50 against the JPY, which was a former break-up area. The Yen has failed to break-down this support for several days and ...

www.sunbirdfx.com The US stock markets opened the trading week on the negative territory after strong rally last week. Personal spending was 0.3%, against expectations for 0.4%, and personal income was 0.4% against expectations for 0.3%. Today's main data is the ISM manufacturing PMI. Pay attention to the fact that many European banks are closed today due to holiday, which might cause a narrow range in the forex markets. USD/CHF The USD did not make a significant change against the major currencies yesterday, in spite the declines in Wall Street. As stated, many banks are closed today in Europe and this might give the USD the opportunity to rise against the European currencies, such as the Swiss Franc. The pair reached the lower boundary of the triangle, which we have been following for ...

www.sunbirdfx.com The US stock market closed the second day of the trading week close to the opening levels, after strong rally on Monday. The consumer confidence data was lower than the previous data but did not have a significant influence on the investors. Today is published the Core Durable Goods Orders m/m data. NZD/USD The USD traded in a bullish trend against the major currencies yesterday after few days of weakening, as the NZD had difficulties in continuing rising against the USD as well. The pair has been moving through a channel between the resistance at 0.825, which is has failed to break several times in the recent weeks, and the 200 SMA around 0.805. The pair made a bearish candlestick yesterday, which emphasizes the strength of the resistance and if the current pattern ...

www.sunbirdfx.com The intensity of the risings in Wall Street is reducing every day as the S&P 500 broke through the resistance at 1370 points but not as powerful as expected. However, the consumer confidence data helped the stocks to remain on the positive territory, as it reached a new high since last year. Today's main events are the prelim GDP q/q and Bernanke Testifies. EUR/USD The ECB is about to transfer 500 billion Euros to the European banks in order to ease the credit problems and help the Eurozone economy. This action spreads optimism among the EUR investors and the currency is consolidating under 1.35 versus the USD. The pair created the "Bull-Flag" pattern on the daily chart and a break-up of the resistance might lift the price up to the 200 SMA around 1.37. However, this ...

www.sunbirdfx.com The US stock market continued the pattern routine from the beginning of the week: the first one or two hours start with declines that make the investors to believe that the correction is coming, but then a sharp turnover appears and takes the stocks to new highs. Dow Jones broke through the pick of 2011 and it is approaching the level of 13,000, in which it has not visited since May 2008. In Europe, the rumors of agreements between the Eurozone and Greece spread again and helped the stocks and the Euro to rise. However, there is still not an official announcement regarding this issue and the ECB press conference today might put light on the events. USD/CAD The Canadian dollar keeps strengthening against the USD as it moves in a sharp channel. The pair broke down the ...

www.sunbirdfx.com The US stock markets opened the trading week in the red territory as the indices shed 0.10%. The hesitated opening for the trading week might indicate that the investors are getting prepared to the expected correction, though the stock might make another bullish session before the correction. GOLD The precious metal made an impressive rally since the beginning of the year and it looks like it became attractive again among the investors after rough fourth quarter in 2011. The price reached the resistance at $1760 and stochastic levels, which have been high for several weeks, indicate that the correction might occur any day. However, it would not be wise to try to guess when or where the correction starts and any trade against the bullish trend would be a gamble. ...

www.sunbirdfx.com The bulls in Wall Street released their power right after the FOMC rate statement was published yesterday. As we estimated, the markets have waited the whole week for the main event and the volatility in the markets was extremely higher. The S&P 500 and the Dow-Jones opened the day in the red zone, whereas NASDAQ was already green due to Apple's reports that lifted the stock 6%. The technology index passed 2011' picks and set a new high. The S&P is getting close to last year's climax at 1370 points, which is also the highest level since August 2008. This bullish rally in the stock markets influenced the commodities markets as well, as the precious metals rose more than 2% yesterday. GBP/USD The USD rose against most of the major currencies on the beginning of the day, ...

www.sunbirdfx.com Wall Street rose 1% last week and the major indices are getting ready for an additional break-up. The S&P 500 is consolidating under 1300 points and the long tail candlestick from Friday indicates that the pressure of the buyers is high. However, this is the results season and the markets tend to be volatile, so a disappointing report of one of the large firms might pull the stocks down. JP Morgan released its report for the 4th quarter on Friday, which was under analysts' expectations. The stock shed 4% on the beginning of the day and had a negative impact on the stock markets, but eventually it closed at -2.5%. Important reports for the following week: Citigroup, US bank, Google and IBM. EUR/USD On Friday, the Euro tried to continue the bullish correction that ...

www.sunbirdfx.com The US stock market was closed yesterday and the volumes in the Forex markets are extremely low. The currency pairs are remaining unchanged and the volatility is zero. These kinds of days are dangerous than usual to the forex traders because the market gives very few opportunities for good trades and the risk is getting higher. One of the options to avoid this higher risk is to take a few days off until the holiday ends. Meanwhile, you can practice demo or anything else that works for you. However, it is possible to find some rare opportunities but then you have to take precautions such as using smaller than usual sizes etc. The major pairs are not making any significant change these days, so the cross pairs, which are usually more volatile, might give an opportunity ...