Tuesday, 27 Oct 2009

EUR/USD Pair Slides on Poor Consumer Confidence Data

The EUR/USD pair continued to dive for the second consecutive day, as the U.S. released pessimistic CB Consumer Confidence figures. The reading declined for the second month in a row. Today's figures showed a 47.7 reading, far lower than the forecast of 53.7. These results matched the views of many key U.S. policymakers that rising unemployment will continue to strain household spending.

The EUR/USD has descended by 65 pips so far today to the 1.4815 level. However, it is considerably less than the EUR's losses yesterday vs. the USD. The USD did make losses vs. the JPY, CAD and GBP today. On the other hand, the greenback is making some gains at the moment vs. the Swiss Franc. The big bull yet again today seems to be the GBP, as the British currency soars vs. the EUR and USD.

Looking ahead to late night trading, there are plenty of opportunities for forex traders to make some big profits. At 20:00 GMT, U.S. Treasury Secretary Timothy Geithner will be speaking about the state of the U.S. economic recovery. Additionally, it's recommended that you follow the release of the Japanese Retail Sales figures at 23:50 GMT. For now, it is a wise choice to open your positions in the majors, as today's tends are set to continue.

USD/CHF Downward Correction in the Making

Traders, pay close attention to the upcoming downward trend for the USD/CHF pair. The chart used is the 4-hour USD/CHF, and the indicators used are the RSI and the Williams Percent Range. Point 1: The RSI shows the pair floating in the overbought territory, indicating that a downward correction is imminent. The pair currently floats above the -20 mark on the Williams Percent Range, signaling that a bearish correction will happen anytime soon.