Philippine Peso may rise on ‘Golden Cross’
The Philippine peso may strengthen 2.4 percent over the next three weeks after the dollar’s short- term moving average against the Southeast Asian currency crossed below a longer-term line, according to Okasan Securities Co.
The peso may advance to its Aug. 9 high of 44.82 in a week and then to its April 26 high of 44.158 in three weeks, the strongest level since August 2008, Tsutomu Soma, a Tokyo-based bond and currency dealer at Okasan, said in an interview today.
“The peso is back on a long-term trend of appreciation,” Soma said. “This formation of the moving average is quite credible this time.”
The peso declined 0.2 percent to 45.235 per dollar as of midday in Manila, according to Tullett Prebon Plc. The currency has advanced 0.7 percent so far this month, making it the third- best performer among the 10 most-actively traded currencies in Asia outside Japan, after the Thai baht and Malaysia’s ringgit.
The peso’s drop stalled near the dollar’s 100-day moving average several times this month, including on Aug. 24 and Aug. 25, Soma said. The 20-day line dropped below the 100-day on Aug. 13 in a formation called the dollar’s “dead cross” or the peso’s “golden cross,” a bullish signal for the Southeast Asian currency, he said.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
Source: businessweek.com
Publication date: 8/27/2010
The Philippine peso may strengthen 2.4 percent over the next three weeks after the dollar’s short- term moving average against the Southeast Asian currency crossed below a longer-term line, according to Okasan Securities Co.
The peso may advance to its Aug. 9 high of 44.82 in a week and then to its April 26 high of 44.158 in three weeks, the strongest level since August 2008, Tsutomu Soma, a Tokyo-based bond and currency dealer at Okasan, said in an interview today.
“The peso is back on a long-term trend of appreciation,” Soma said. “This formation of the moving average is quite credible this time.”
The peso declined 0.2 percent to 45.235 per dollar as of midday in Manila, according to Tullett Prebon Plc. The currency has advanced 0.7 percent so far this month, making it the third- best performer among the 10 most-actively traded currencies in Asia outside Japan, after the Thai baht and Malaysia’s ringgit.
The peso’s drop stalled near the dollar’s 100-day moving average several times this month, including on Aug. 24 and Aug. 25, Soma said. The 20-day line dropped below the 100-day on Aug. 13 in a formation called the dollar’s “dead cross” or the peso’s “golden cross,” a bullish signal for the Southeast Asian currency, he said.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
Source: businessweek.com
Publication date: 8/27/2010