Bernanke Reaffirms Low Interest Rates

Oil:

The daily chart shows yesterday’s high price volatility did send the pair below the long term trend line that begins on February 5th, but the price breach failed to close below the trend line. This may present forex traders an excellent opportunity to enter into the market long on the recent price dip.

Forex Market Anticipates the Release of U.S. Unemployment Claims

CHF/JPY:

The latest downward movement on this pair has given traders two distinct signals for a bullish correction later today. The first is a bullish cross on the 1 hour Slow Stochastic, suggesting a upward movement is imminent. The second is a fresh doji candlestick formation on the 4-hour chart, which typically signals a reversal is in the making. Entering long positions as soon as possible may help forex traders capture decent profits.

USD Furthers Gains on EUR ahead of Bernanke Testimony

USD/MXN:

After a volatile breach of the upper border of the Bollinger Bands on the hourly chart, this pair now appears positioned for a steady downward correction. Bouncing from the lower border to the upper border in the 4-hour Bollinger Bands supports this notion. Forex traders can also see that the price is currently floating in the over-bought territory on the 4-hour RSI, and a fresh bearish cross has recently formed on the 4-hour Stochastic (slow). Going short on the Dollar against the Mexican Peso in today’s trading may not be a bad idea.

U.S Dollar Up ahead of Bernanke Testimony

Crude Oil:

Looking at the weekly chart for this commodity shows a very distinct bullish channel with clear peaks and troughs. The $80 a barrel mark seems to represent the most significant price barrier for this commodity. As the price currently sits on this barrier, forex traders would be wise to note the recent bearish cross on the daily Stochastic (slow) and the over-bought indication on the daily RSI, both suggesting that the $80 mark is indeed putting heavy pressure on the price of oil. Going short and capturing the downward price move may be a wise decision.

Will the Euro Continue to Recover?

Oil:

Oil prices rose significantly in the last week and peaked at $80.30 per barrel. However, the daily charts’ RSI is floating in an overbought territory, suggesting that the recent upward trend is loosing steam and a bearish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage.

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