Monday, 21 Sep 2009

Dollar Extends its Gains against the Majors

The Dollar continued to extend its gains against the majors today. With the upcoming CB Leading Index data expected to be released from the U.S. today at 14:00 GMT, people are talking about other expectations too, such as the G20 Meetings on Thursday and Friday. It is expected that major banks and major economies will be affected by the expected increase talk and final implementation of the increased global financial regulation. As the fear of this stands over the financial markets, there has been a second straight day of declines in global equities. This has led to a change in recent behavior in the forex market with regards to the Dollar. The USD has risen for a second day against the GBP, as the GBP/USD pair now stands at the 1.6185 level. The greenback is trading higher vs. the EUR by 20 pips at 1.4663. The Dollar is also making some significant gains against the JPY today by 70 pips at the 92.20 level. The major things that are expected to impact the USD's main crosses in the coming hours is the bearishness of the British Pound, the German economic situation, and the pace of recovery in Japan. In order to take advantage of the Dollar's recent uptrend, it is recommended that you buy into the USD's main crosses now.

GBP/USD Imminent Correction

Attention to all, there seems to be something very important developing on the GBP/USD 4-hour chart. The chart below signifies the upcoming bullish trend that is set to occur anytime soon. Point 1: The pair's descent towards the lower border of the Bollinger Bands shows the likely end of the current bearish trend, indicating an upcoming bullish reversal. Point 2: The MACD shows the cross is oversold, indicating upward pressure. Point 3: The Relative Strength Index (RSI) signals that the pair is sitting in the oversold territory, and that a bullish correction is imminent.