Feb 1 , 2010

Hai traders' ..
How your weekend ? Hope that everyone are satisfied with what i am forecast here and maybe there is some additional info that i can put together for you future references...

So let us see what we have here .. We start with Forex Factory as per usual for the Fundamental Analysis ...

So from FF, there is 2 big event for GBP manufacturing PMI and USD ISM Manufacturing PMI. For GBP manufacturing PMI the previous index and forecast are same but there is increasing for the USD manufactuirng PMI. So then i can see that USD will be bullish during that news release.
Ok then, here is some article from Forex Trading Blog for other opinions :

Here’s how world currencies are trading this morning:

Aussie (AUD): Gains in the Aussie have slowed down as the global slowdown, particularly in China, is expected to slow growth in Australia. This morning is a mixed bag for the Aussie, as it’s higher vs. the Japanese yen and British pound, but down vs. the US dollar and Euro.

Kiwi (NZD): The Kiwi is trading higher across the board and is showing the highest percent gain vs. the yen this morning, up 1%. They just reported a budget deficit for the first time in 9 years, as tax receipts have slowed and government spending picked up last year.

Loonie (CAD): Canadian GDP came in this morning at .4%, a smidge higher than expectations. Canada is showing slow but steady growth, which is a positive for the economy. The Loonie has been weakening against the US dollar as global risk appetite has abated and oil prices are down almost $6 this year.

Euro (EUR): The Euro is trading higher against the yen and the pound, but down against the rest this morning. Consumer prices rose 1% showing that inflation is starting to pick up in the region. Also to note is that fears over the Greek debt crisis are weakening as region considers all of its options.

Pound (GBP): The pound is down this morning against all but the yen, experiencing a technical pull back from its recent strength. Housing prices were up the most in 5 months and consumer confidence is improving. BOE policy-maker Andrew Sentance cautioned that the recovery can continue, “especially if interest rates remain low.”

Dollar (USD): The dollar is showing strength today after the GDP figures that were reported this morning. The fastest growth since 2003 is stoking thoughts that inflation may be closer than the Fed thinks.

Yen (JPY): The Japanese yen is down across the board today as the CPI index showed that deflation is still very prevalent in the Japanese economy. Finance Minister Kan called for the Bank of Japan to take a powerful approach to combat falling prices and a strengthen yen.

Now let us see for the Technical Analysis for :

GBP/USD :

So then, from last Friday is show us the BEarish movement until end of the trading hours. Today i can say here is there is some retracement as per normal movement for the chart and once the time come for ISM news, it will continue the trend Bearish. So, for those who are really know the Pivot movement, do your job. Price will definitely find the Pivot level before come back for the trend. As per MACD said, it still under 0-level for bearish movement but for Stochastics it slowly move and find their Overbought level. For the chart pattern, nothing i can say, since there is no chart pattern appear.

EUR/USD

Ok now for the EUR/USD, seems like same as GBP/USD. It will retrace first then continue Bearish since the trend is Bearish. MACD said so since it still under 0-level but Stochastic is pointing up and until they reach the overbought level, surely it will go for the Bearish trend.

So, now as a trader it still need your intervention to study the movement and well forecast before entering any position. Good luck, see you then ... Happy trading :)