Thus far today the Dollar seems to have gained much bullish momentum on the back of weak manufacturing data from the leading industrialized nations. The most significant of these is the U.S. Chicago PMI, which showed figures of 46.1, rather than the forecasted 52.1. It seems that traders have realized that the USD is the best bet for now, as fears grow over the so called economic recovery. The Japanese Tankan Manufacturing Index last night and the British Manufacturing PMI earlier today showed very disappointing figures indeed.
So far today, the EUR/USD pair is trading lower by about 90 pips at the 1.4533 level. The GBP/USD cross remains flat, as the strong USD has taken out some of the expected bullish momentum for the GBP today. The Dollar is also trading higher vs. the Swiss and Canadian currencies. However, it is important to note that this behavior can change very quickly, as there is much data expected very shortly from the U.S. At 12:30 GMT, there is the Unemployment Claims and at 14:00, there is the Home Sales. It is a wise idea for you to open large USD positions now before these vital news releases take effect.
Gold's Downward Correction Imminent
Attention, take a look at the Gold 4-hour chart now. The chart signals that the recent bullish trend seems to have waned, and there is much bearish momentum. Point 1: The pair seems to be drifting lower on the Bollinger Bands, suggesting that the bearish fall is in its early stages. Point 2: The RSI shows that the price of the cross floats in the overbought territory, suggesting that a downward correction is imminent. Point 3: The Williams Percent Range also supports the bearish view.
