ForexYard Technical Analysis for 2010-02-09

2010-02-09: Euro-Zone Debt Concerns Weigh Heavily on EUR
Traders are expecting a slow news day, and as such may experience thin trading conditions and low liquidity. The few reports expected shouldn’t cause too much of a stir, but with thin trading it may result in some decent price action. The EUR’s uptick on Monday has many concerned that the 16-nation currency is now due for a downward correction, especially given the rapidly declining sentiment in the Euro-Zone caused by decisions made in Greece and Portugal concerning national debt and government spending, respectively.

EUR/USD
The pair seems to be exhibiting some mixed signals. The hourly chart’s Slow Stochastic exhibits a fresh bearish cross; however, the daily chart’s Slow Stochastic is exhibiting a bullish cross while the RSI is floating in the oversold territory. Going long with tight stops may be a good choice for today.

GBP/USD
The pair’s recent downward trend may be seeing a correction later today as the 8 hour and daily chart’s RSI are floating in the oversold territory and a bearish cross is evident on the daily chart’s Slow Stochastic, indicating an imminent upward correction. Going long for the day may be advised.

USD/JPY
The pair seems to be range trading at the moment, staying between 89.10 and 89.60, with most indicators floating in neutral territory. Waiting on a clearer direction for the pair may be advised for today.

USD/CHF
The 8 hour and daily charts’ RSI are floating in the overbought territory while the daily chart’s Slow Stochastic is exhibiting a bearish cross. Going short for the day may be advised.

USD/DKK
The daily chart’s Slow Stochastic is exhibiting a bearish cross while the 8 hour and daily RSI are floating in the overbought territory indicating an imminent downward trend.

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