Thursday, 24 September 2009

Thursday, 24 Sep 2009 U.S Unemployment Claims Unexpectedly Drop

Thursday, 24 Sep 2009
U.S Unemployment Claims Unexpectedly Drop
The USD remained higher against most of its major counterparts Thursday except the Japanese yen, continuing to prove that, for the time being, this is the solid currency that traders can rely on to provide them with steady profits. The EUR/USD stopped the upside move at good resistance level of 1.4830 and from then on it fell more than 180 points all the way down to 1.4650 level. Risk aversion continues to give the Dollar strength and that is likely to continue until we see signs of stabilization. Also, the USD saw gains against the GBP.
A leading indicator released today was U.S. Unemployment Claims. The number of Americans filing first-time claims for jobless benefits dropped unexpectedly last week to the lowest in two months, another sign firings are slowing as the economy pulls out of the recession. The total number of people collecting unemployment insurance fell in the prior week to 6.14 million, lower than forecast.
Tomorrow, in a day that forex traders cannot afford to overlook, a batch of data is expected from the leading economies. In a very rare turn of events, both the U.S Core Durable goods Orders and the U.S New Home Sales will be released on the same day, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.
EUR/GBP Reversal in the Making
This pair's sustained upward movement has finally pushed its price into the over-bought territory on the daily chart's RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.


0 comments: