ForexYard Technical Analysis for 2009-07-01

2009-07-01: ADP Employment Data to Drive the Majors Today
The surprise drop in consumer confidence in the United States yesterday has resulted in a sudden buy-up in USD as investors flock to safe-havens. With a market that appears to be lacking a clear direction recently, major reports such as the CB Consumer Confidence report yesterday, and today’s ADP Non-Farm Employment Change report become that much more important to watch as more investors await their release before trading.

EUR/USD
This pair currently lacks clear direction. With most indicators either floating in neutral territory, or giving off mixed signals, this pair continues to trade in a distinct range. Buying on lows and selling on highs within this range is the most preferable strategy in this environment.

GBP/USD
There is a distinct bullish cross on the 4-hour chart’s Slow Stochastic and an imminent bullish cross on the hourly chart’s MACD. These two signals together indicate an impending bullish correction to yesterday’s sharp downward movement. Going long might be wise today.

USD/JPY
Yesterday’s volatile bullish movement in this pair has pushed the RSI on the hourly and 4-hour charts into the over-bought territory, representing the presence of downward pressure. The fresh bearish cross on the 4-hour chart’s Slow Stochastic supports the notion of a downward correction. Going short with tight stops appears to be preferable.

USD/CHF
Almost all indicators on this pair show neutrality as the price floats near the 1.0850 price level. With a bearish cross on the hourly MACD and a bullish cross on the 4-hour MACD, the direction of this pair is uncertain. Waiting for a clearer signal might be a good choice today.

EUR/GBP
The price of this pair has been trading flat these past several days. However, the Bollinger Bands on the hourly and daily charts are tightening, signaling an impending volatile jump. With a bearish cross on the hourly MACD and the 4-hour chart’s Slow Stochastic, this volatile jump may very well be bearish.

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