ForexYard Technical Analysis for 2010-03-04

2010-03-04: Dollar Falls vs. EUR on Positive ISM Data
The U.S. dollar traded lower Wednesday as investors moved to higher-yielding currencies and riskier assets after U.S. data was better than expected. ISM service data showed the U.S. services sector grew in February at its fastest pace in more than 2 years, reducing the appeal of the greenback as a relatively safe investment.

EUR/USD
The daily chart is showing mixed signals with its RSI fluctuating at the neutral territory. However, there is an impending bearish cross forming on the 4-hour chart’s MACD indicating a bearish correction might take place in the nearest future. When the downwards breach occurs, going short with tight stops appears to be preferable strategy.

GBP/USD
The GBP/USD has gone increasingly bullish in the past 2 days, and currently stands at the 1.5070 level. The daily chart’s RSI supports this currency cross to rise further today. However, the 4-hour chart’s Stochastic Slow signals that a bearish reversal might take place today. Entering the pair when the signs are clearer seems to be the wise choice today.

USD/JPY
The price of this pair appears to be floating in the over-sold territory on the 4-hour chart’s RSI indicating a downward correction may be imminent. The downward direction on the daily chart RSI also supports this notion. Going long might be a wise choice.

USD/CHF
The pair has been range-trading for a while now, with no specific direction. The Daily chart’s Slow Stochastic providing us with mixed signals. The 4 hour charts do not provide a clear direction as well. Waiting for a clearer sign on the hourlies chart might be a good strategy today.

Silver
Silver prices rose significantly in the last week and peaked at $17.10 an ounce. However, the 8- charts’ RSI is floating in an overbought territory suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. This might be a good opportunity for

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