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ForexPros Daily Analysis November 02, 2010Pound Trying to Break Range, Yen Near All Time Low---Euro DollarThe euro is in a range, in a wedge. The range is narrowing into a wedge.Euro is holding extension long setup at 1.3748, with target at 1.4355.Larger multi year short at 1.3396, is acting as resistance. Near a clear break of 1.416 or 1.369 for direction.On a 15 min chart, euro holding a dirty long (setup broke in its previous measured move long). Target is 1.4075.---GBP/USDLooks stronger than the euro, and is knocking at the top of its range. Pound is in long setup at 1.5704, with target at 1.6297, which coincides with target of longer term long from 1.539. The multiyear short, 61.8% line at 1.5967 has acted as strong resistance.On 15 min chart, the pound has been in measured moves longs and is currently holding and front running the long at 1.5983, with target at 1.614.---USD/JPYYen hit new yearly low at 80.23 and close to breaking all time lows at 79.7. This is a major area of support and we must remain alert for possible Bank of Japan intervention. Trade carefully.On the 15 min chart. In measured moves short, off 50% at 80.75, target at 80.116. Larger 50% at 81.108, with target at 79.823.---Forex Trading Analysis written by Diana Rochford for ForexPros. For more information about technical analysis visit ForexPros.---Disclaimer:Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More

ForexPros Daily News October 28, 2010Forex - EUR/USD hits daily high as dollar reverses uptrendForex Pros – The euro was up against the U.S. dollar on Thursday, rising to hit a daily high as the dollar reversed its recent uptrend.EUR/USD hit 1.3853 during late Asian trade, a daily high; the pair subsequently consolidated at 1.3812, gaining 0.32%.The pair was likely to find support at 1.3697, the low of October 20 and resistance at 1.3981, Tuesday’s high.Earlier in the week, the dollar had been boosted by a report that the U.S. Federal Reserve was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.The euro was also up against the pound, with EUR/GBP gaining 0.41% to hit 0.8767.Later in the day, the U.S. was to release key weekly data on initial jobless claims.---Forex - USD/JPY hits 2-day low as BOJ hold steady on policyForex Pros – The U.S. dollar fell to a to a 2-day low against the yen on Thursday, after the Bank of Japan held its benchmark interest rate steady but moved the date of its next policy meeting up to just after the next meeting of Federal Reserve policy makers. USD/JPY hit 81.23 during European morning trade, the pair’s lowest since October 26; the pair subsequently consolidated at 81.35, shedding 0.51%.The pair was likely to find support at 80.61, the low of October 26 and resistance at 81.97, Wednesday’s high.Earlier in the day, the Bank of Japan kept its benchmark interest rate unchanged in a range of 0.0% to 0.1%, in line with expectations. The bank said it moved its meeting to November 4-5 from mid-November to speed up the roll-out of a JPY 5-trillion asset buying plan, which the bank unveiled early this month.The BOJ made no mention of the Federal Reserve November 2-3 rate review but the move sparked speculation that the BOJ wanted to be able to act quickly in the event of further yen gains.The yen was also up against the euro, with EUR/JPY shedding 0.23% to hit 112.32.Also Thursday, official data showed that Japanese retail sales rose significantly less-than-expected in September, rising at the slowest pace this year.---Forex News written by Forexpros. Fore more information about forex news visit ForexPros---Disclaimer:Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.See More

ForexPros Daily Analysis October 25, 2010Free webinar on ForexPros - Forex FundamentalsExpert: Curt WehrleyWhen: Tuesday, Oct 26, 2010, 10:00 ET A review of the top fundamental news events over the prior month, and a look ahead and the news that could influence the foreign exchange market over the coming weeks.Click here to join free---Forex Analysis For GBP/USD and GBP/JPY1) Forex Trading Signal For GBPJPYForex Trend AnalysisThe overall trend for this currency pair is DOWN for the weekForex Technical AnalysisWeekly ChartSimilar to the movement last week, the GBPJPY pair continues to move within the trend channel and in fact testing the 127.616 previous swing low.4 Hourly ChartOn the 4 hourly chart, you will also see a trend channel in action. At the time of writing this analysis, the price has fell to test the support trend line of the trend channel.Overall Forex AnalysisI will go SHORT for this pair but I have to make sure that the price successfully broken the trend channel before considering any SHORT trade.Important Levels of Support To Note• 127.077• 126.735---2) Forex Trading Signal For GBPUSDForex Trend AnalysisFrom the trend analysis that I have done on several time frames, the trend for this pair is DOWN for the week.Forex Technical Analysis4 Hourly ChartThe GBPUSD on this time frame is trying to break above the resistance trend line which is at the same level as the Fibonacci 0.500. At the time of writing, the price has failed to break above and instead is being repelled by the resistance trend line.Hourly ChartAfter testing the M4 Daily pivot for 4 times consecutively, the price has fallen sharply showing the strength of that resistance level. In fact, at that level, there is also a 0.500 Fibonacci resistance which adds on to the power of that level.Overall Forex AnalysisI will go SHORT for this pair and the best will be after it broke below the strong support at 1.56573.Important Levels of Support To Note• 1.56573---Forex Trading Analysis written by Kelvin Lee for ForexPros. For more information about forex news visit ForexPros.---Disclaimer: Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More

ForexPros Daily News October 21, 2010Forex - EUR/USD edges higher after Geithner remarksForex Pros – The euro edged higher against the U.S. dollar on Thursday, erasing early losses, following remarks by U.S. Treasury Secretary Timothy Geithner.EUR/USD hit 1.3975 during late Asian trade, a daily high, the pair subsequently consolidated at 1.3973, gaining 0.07%.The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4155, last Friday’s high and a 10-month high.In an interview with the Wall Street Journal Geithner said he believes major currencies are "roughly in alignment now," suggesting he sees no need for further dollar falls against the euro and yen. He also called on G20 finance leaders to agree to "norms" on exchange rate policy ahead of the weekend G20 meetings and said he would seek out targets for "sustainable" trade surpluses and deficits as a way to help rebalance the global economy.The euro was also up against the pound, with EUR/GBP gaining 0.50% to hit 0.8856.On Tuesday, the Federal Reserve’s Beige Book reported that "national economic activity continued to rise, albeit at a modest pace" from September through early October. This was in contrast with the previous beige book, released in early September, which reported "widespread signs of deceleration compared with previous periods."--- Forex - USD/JPY erases gains, re-approaching 15-year lowForex Pros – The U.S. dollar erased gains against the yen on Thursday, falling to a fresh daily low, following remarks by Japan’s Chief Cabinet Secretary.USD/JPY retreated from 81.81, the pair’s highest since Tuesday, to hit 80.97 during European morning trade, shedding 0.12%.The pair was likely to find short-term support at 80.87, the low of October 15 and a 15-year low and resistance at 82.34, the high of October 12.Earlier in the day, Japan’s Chief Cabinet Secretary Yoshito Sengoku said Japan hadn’t set a line to defend its currency at 82 yen per dollar after the country’s prime minister and finance minister held a meeting to discuss the yen’s gains. “It wasn’t about whether 82 yen was the line, but that the Finance Ministry will monitor the currency markets and we’ll take decisive measures appropriately at an appropriate timing,” Sengoku said.Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.07% to hit 113.33.The dollar’s earlier gains came after U.S. Treasury Secretary Timothy Geithner said he believed major currencies are "roughly in alignment now," suggesting he sees no need for further dollar falls against the euro and yen. ---Forex News written by Forexpros. Fore more information about currency charts visit ForexPros.---Disclaimer:Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.See More

ForexPros Daily News October 20, 2010Forex -USD/JPY moves lower, re-approaching 15-year lowForex Pros – The U.S. dollar was down against the yen on Wednesday, re-approaching a 15-year low as market focus returned to the prospect of further monetary easing by the Federal Reserve.USD/JPY hit 81.20 during European morning trade, a daily low; the pair subsequently consolidated at 81.26, shedding 0.39%.The pair was likely to find support at 80.87, last Friday’s low and a 15-year low and resistance at 82.55, the high of October 8.Earlier in the day, Bank of Japan deputy governor Kiyohiko Nishimura said the strong yen could erode corporate sentiment and lower consumer prices, exacerbating deflation and restricting economic growth.“The fact that the recent appreciation of the yen is deteriorating business sentiment” is a “big factor in putting downward pressure on economic activity,” Nishimura said. He added that the bank will continue to pursue “strong” monetary policy measures and stands ready to take appropriate monetary action.Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.17% to hit 112.17.Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.--- Forex - EUR/USD rebounds from 11-day low as focus returns to FedForex Pros – The euro was up against the U.S. dollar on Wednesday, rebounding from an 11-day low as focus turned back onto the prospect of further monetary easing by the Federal Reserve.EUR/USD hit 1.3801 during late Asian trade, a daily high; the pair subsequently consolidated at 1.3792, gaining 0.46%.The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4155, last Friday’s high and a 10-month high.On Tuesday, three regional Fed presidents reinforced that the central bank will begin a second round of asset purchases with two saying asset purchases must be big enough to aid the economy.Chicago Fed president Charles Evans said the bank would need to buy securities on a large scale several times in order to temporarily to raise inflation. Meanwhile, Atlanta Fed president Denis Lockhart said that a rate of USD 100 billion of purchases per month is “in the range of numbers one might consider.”The euro was also up against the pound, with EUR/GBP gaining 0.38% to hit 0.8775.Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.---Forex News written by Forexpros. Fore more information about technical analysis visit ForexPros---Disclaimer:Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.See More

ForexPros Daily News October 12, 2010Forex - USD/JPY resumes slide as Japan poised for interventionForex Pros – The U.S. dollar was down against the yen on Tuesday, re-approaching Friday’s 15-year low, as Japanese authorities indicated that they were poised to take “bold” action if the yen continued to strengthen.USD/JPY hit 81.81 during European morning trade, a fresh daily low; the pair subsequently consolidated at 81.95, shedding 0.13%.The pair was likely to find support at 81.38, Friday’s low and a 15-year low and resistance at 83.02, the high of October 7.Earlier in the day, Japanese Finance Minister Yoshihiko Noda said his government “will watch currencies with great interest and will take bold action, which includes intervention, if needed.”The message was reiterated by Economy Minister Banri Kaieda who said that an abrupt strengthening of the yen could hurt the nation’s recovery and that there was no change in the government’s stance to take decisive measures when necessary.The yen was also up against the euro, with EUR/JPY falling 0.64% to hit 113.14.Also Tuesday, official data showed that Japanese consumer confidence fell unexpectedly in September, down for the third consecutive month.---Forex - GBP/USD edges lower ahead of key U.K. inflation dataForex Pros – The pound edged lower against the U.S. dollar on Tuesday, falling to hit a 2-day low, ahead of the release of a key report on U.K. consumer prices.GBP/USD hit 1.5859 during early European trade, the pair’s lowest since October 8; the pair subsequently consolidated at 1.5874, shedding 0.07%.Cable was likely to find support at 1.5751, the low of October 5 and resistance at 1.5964, the high of October 8.Late Monday, industry data from the British Retail Consortium said that retail sales rose at an annualized rate of 0.5% in September, after rising by 1.0% in August. Also Monday, the Royal Institution of Chartered Surveyors said that house prices in the U.K. fell more-than-expected in September as oversupply in the British property market continued to act as a drag on prices. Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.32% to hit 0.8710.Later in the day, the U.K. was to publish official data on consumer price inflation. This is considered the U.K.'s most important inflation data because it's used as the central bank's inflation target.---Forex Trading Analysis written by Munther Marji for ForexPros. For more information about technical analysis visit ForexPros.See More

ForexPros Daily News October 11, 2010Forex - Euro retreats from 1.40 as dollar firms upForex Pros – The euro was down against the U.S. dollar on Monday, retreating from a daily high, as the dollar stabilized despite expectations of further monetary easing by the Federal Reserve.EUR/USD retreated from 1.4010, the daily high to hit 1.3936 during early European trade, shedding 0.52%.The pair was likely to find support at 1.3832, last Friday’s low and short-term resistance at 1.4028, last Thursday’s high.Data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month. The weak data reinforced expectations that the Federal Reserve will announce new quantitative easing asset buying in order to boost the flagging U.S. economy.The euro was also down against the pound, with EUR/GBP shedding 0.23% to hit 0.8747.Also Friday, Jean-Claude Juncker, the head of the euro zone’s finance ministers, said that the euro was too strong and the single currency’s strength did not reflect the region's economic fundamentals.---Forex Trading Analysis written by Munther Marji for ForexPros. For more information about forex news visit ForexPros.See More

ForexPros Daily News October 7, 2010Forex - USD/JPY tumbles to new 15-year low as intervention sidelinedForex Pros – The U.S. dollar tumbled to a fresh 15-year low against the yen on Thursday, as the threat of renewed Japanese intervention was sidelined ahead of Friday’s Group of 20 Washington summit.USD/JPY hit 82.25 during European morning trade, the pair’s lowest since May 29, 1995; the pair subsequently consolidated at 82.39, tumbling 0.64%.The pair was likely to find support at 80.75, the low of April 20, 1995 and resistance at 83.26, Wednesday’s high.Japanese intervention ahead of Friday’s meeting of financial ministers and central bankers from the G20 nations would create difficult questions for Japanese authorities, forcing them to explain that they are not just pushing the yen lower to gain a trade advantage against other nations.The yen was also up against the euro, with EUR/JPY shedding 0.24% to hit 115.23.Later in the day, the U.S. was to release key weekly data on initial jobless claims.---Forex Trading Analysis written by Munther Marji for ForexPros. For more information about currency charts visit ForexPros. ---Disclaimer:Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.See More

ForexPros Daily Analysis September 29, 2010Free webinar on ForexPros - Top 12 Golden Trading Tips: Start Your Day on the Right Side of the MarketExpert: Stephanie RadkayWhen: Mon, Thu, Oct 7, 2010, 11:00 ET Trading can be as risky as flying a plane. Pilots use a checklist to get off the ground and so should traders. Here is your 12 tip checklist to give you the confidence and the best opportunity for success. In this webinar Stephanie Radkay, CME Floor Broker, Screen Trader and Educator, will address personal vs. market risk like you've never seen it before, her Rotating Directional Trading System (RDS) and 10 other golden nuggets that have been used successfully since 1993.Click here to join free---Euro DollarYesterday, we said “the Euro has 2 choices, not 3: either it breaks 1.3509, or it collapses”, and indeed the Euro did break 1.3509 and reached our first suggested target 1.3589 successfully & accurately (the 2-day high for yesterday & today until the moment of preparing this report is 1.3594). Earlier yesterday, the Euro broke the support at 1.3448 and almost made it to our first suggested target 1.3368, but it stopped 12 pips before achieving this unique happening of reached the sell strategy target & the buy strategy target on the same day. Breaking 1.3509 is a solid confirmation of the righteousness of our medium term outlook. Last week, we had analyzed the medium-long term, and after doing all the necessary analysis using classical technical analysis, Elliot & Fibonacci, we found that most probably the first leg up from 1.1875 to 1.3332 is wave A of a 3-wave correction up. We also found that, most probably, the drop which followed is wave B, which stopped at Fibonacci 50% level of wave A with not-so-well kind of accuracy as it bottomed at 1.2586 whereas the Fibonacci level was 1.2604. If this move has stopped closer to the Fibonacci level, we would have expected this current rise from the first step it took around 1.26. So, currently, we are in wave C, which will ideally target the equality level (where wave A = wave C) which is at 1.4043, or the Fibonacci 61.8% level for the massive drop from 1.5143 to 1.1875 which is at 1.3895, or the top of the rising channel on the daily chart, which is currently at 1.3794 and will rise with time. This leaves the area between 1.3895 & 1.4043 as the proffered target area for this wave. We do believe we are heading there on in a matter of weeks. We expect to reach the target area by December, which is a month famous for introducing medium & long term tops for EURUSD. From there we could see the Euro collapsing and dropping to areas below 1.18, but it is too early to talk about this issue now, and we will leave the next stage discussion to a more appropriate time. Keep in mind that breaking 1.3509 confirms this analysis, and it supports the idea that we are heading to the target area suggested in the medium term analysis. Let’s talk short term now: resistance is at 1.3589, and if broken, we will target 1.3690 and then 1.3787. Short term support is at 1.3554, and if broken we expect a drop to 1.3461, and if broken to 1.3380.Support:• 1.3554: important intraday level.• 1.3461: Fibonacci 61.8% for the rise from 1.3380.• 1.3380: Yesterday’s low.Resistance:• 1.3589: Apr 1st & 2nd high.• 1.3690: Apr 12th high.• 1.3787: Feb 17th high.---USD/JPYFinally, we broke 84.03 which was under our spotlight for several days. The drop which followed reached 83.59 so far. This break opened the door wide for a test, and most probably a break, of the 15-year low 82.87. We believe that getting there is only a matter of time. As you probably remember, the importance of 84.03 comes from the fact that it is the 61.8% Fibonacci level for the rise from the 15-year low of 82.87 to the post-intervention top 85.91, therefore, it is the “guardian” of the 15-year bottom. This makes breaking 84.03 the first step in breaking 82.87, and reaching fresh 15-year lows. But the question is will this drop be fast, and we see these levels relatively soon, let’s say before the weekend? Or will it be a slow drop that will consume many days to get there? Short term support is at 85.30, and if broken, the drop will go on, and target areas below 83, we love 82.87 & 82.40 most of them. Short term resistance is a bit far, and it is at 84.71. If broken, we will shoot up 85.91 & 86.95, very unlikely at the moment, unless we have an intervention.Support:• 83.50: Sep 7th low.• 82.87: Sep 14th low, and the low for the last 15 years.• 82.40: the trend line combining the monthly bottoms of Dec 2008, Jan & Nov 2009.Resistance:• 84.71: the falling trend line from May 5th top on the daily chart.• 85.91: Sep 16th high.• 86.95: Jul 1st low.---GBP/USDViolent fluctuations seen yesterday, jumping to 1.5894 then dropping hard in a matter of 3 hours to 1.5718 is most probably a play to hit the largest number of stops on both sides, before initiating a large move. Technically speaking, breaking 1.5871 yesterday is definitely a positive sign, indicating strength. It was the second positive sign after breaking 1.5728 last week. Today, there is a notably important resistance at 1.5880, this level could give the green light to moving higher, or decline this attempt. We believe that breaking this level or failing at it is the single most important factor determining the short term direction. If we break 1.5880, the Pound will not settle for less than 1.60 seen for the first time in months! And may be later 1.6056. On the other hand, failure here will give the Dollar a chance to breathe, and go back down to test 1.5838. If broken, the Pound will suffer a downward correction, targeting yesterday’s low first, then the very important Fibonacci level 1.5651.Support:• 1.5838: important intraday level.• 1.5718: Yesterday’s low.• 1.5651: short term Fibonacci 61.8% support.Resistance:• 1.5880: important intraday level.• 1.6000: psychological level.• 1.6056: Jan 7th high.---Forex Trading Analysis written by Munther Marji for ForexPros. For more information about technical analysis visit ForexPros.---Disclaimer:Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More

ForexPros Daily Analysis September 28, 2010Euro DollarThe Euro jumped to a new 5-month high yesterday at 1.3503, only 6 pips below the important 50% Fibonacci level for the medium term. This accurate reversal at a Fibonacci level leaves the Euro vulnerable, it could drop hard, any minute from anywhere, and it will be like this unless it breaks 1.3509. Therefore, the Euro has 2 choices, not 3: either it breaks 1.3509, or it collapses. Last week, we had analyzed the medium-long term, and after doing all the necessary analysis using classical technical analysis, Elliot & Fibonacci, we found that most probably the first leg up from 1.1875 to 1.3332 is wave A of a 3-wave correction up. We also found that, most probably, the drop which followed is wave B, which stopped at Fibonacci 50% level of wave A with not-so-well kind of accuracy as it bottomed at 1.2586 whereas the Fibonacci level was 1.2604. If this move has stopped closer to the Fibonacci level, we would have expected this current rise from the first step it took around 1.26. So, currently, we are in wave C, which will ideally target the equality level (were wave A = wave C) which is at 1.4043, or the Fibonacci 61.8% level for the massive drop from 1.5143 to 1.1875 which is at 1.3895, or the top of the rising channel on the daily chart, which is currently at 1.3794 and will rise with time. This leaves the area between 1.3895 & 1.4043 as the proffered target area for this wave. We do believe we are heading there on in a matter of weeks. We expect to reach the target area by December, which is a month famous for introducing medium & long term tops for EURUSD. From there we could see the Euro collapsing and dropping to areas below 1.18, but it is too early to talk about this issue now, and we will leave the next stage discussion to a more appropriate time. Back to short term analysis: resistance is at the important medium term Fibonacci level 1.3509, while the support is at 1.3448. If the resistance is broken, this rally will continue, probably with obvious strength, as it will target 1.3589 & 1.3690. On the other hand, breaking 1.3448 will give the Dollar an opportunity to create a considerable bounce as it leans on the important Fibonacci at 1.3509. If this level is broken, we will ideally target.Support:• 1.3448: Fibonacci 50% for the micro-term.• 1.3368: Fibonacci 61.8% for the rise from 1.3285.• 1.3285: Friday’s low.Resistance:• 1.3509: Fibonacci 50% for the whole massive drop from 1.5143 to 1.1875.• 1.3589: Apr 1st & 2nd high.• 1.3690: Apr 12th high.---USD/JPYDead boring, this pair just does not want to move, and to add to it, there are authorities that are “watching closely”. It is not a very promising situation, but we believe everything will change if 84.03 is broken. In the wake of the FED’s statement late Wednesday, We broke below 85 for the first time after the intervention took us above it. We dropped to 84.94 immediately after the Fed, and then to 84.76 during the Asian session. But even after this move, the technical outlook has hardly changed, but speculators have! Dropping below 85 could mean that they are no longer fearful of the Japs, and they are ready for another round with them! But before breaking 84.03 the Yen’s strength will be subdued. On the other hand, the all important trend line falling from May 5th top, is currently at 85.10. The price has tried several times to break this line in the past few days without success. The Dollar needs to break this line in order to keep going. Simply said, breaking 84.03 or 85.10 is the single most important factor in determining the direction for the medium and short term. If we break 84.03, this means that the speculators have launched a new attack on the Japanese authorities, and that price will target the important 83.73 then 82.87. But, if the price managed to break 85.10 somehow, the technical outlook will change dramatically, and we will be heading to the important levels above 86, most important to us are 86.25 & 86.95.Support:• 84.03: Fibonacci 61.8% for the short term.• 83.33: Sep 8th low.• 82.87: Sep 14th low, and the low for the last 15 years.Resistance:• 85.10: the falling trend line from May 5th top on the daily chart.• 86.25: Jul 20th high.• 86.95: Jul 1st low.---GBP/USDThe resistance specified in yesterday’s report as 1.5871 proved its importance as yesterday’s rise stopped only 6 pips below it (yesterday’s high was 1.5865). Then the price started dropping to areas below 1.58. The technical indicators show a state of “overbnought” which leaves the possibility of a sharp correction there, but the short term trend is a rising one after breaking the 1.5728 level. This is why we strongly recommend not to pick sides today before breaking the specified support or resistance, and we believe that the short term direction will not show itself before a break! Short term support is provided by the bottom of the rising trend channel on the hourly chart, which is at 1.5784. If this level is broken , we will drop to more important Fibonacci level at 1.5684 &1.5641. On the other hand, the most important resistance for the short term is 1.5834, and probably we will not break it, but if it gives way then the party will continue! In this case, targets will be 1.5922 & 1.6000.Support:• 1.5784: the bottom of the rising trend channel on the hourly chart.• 1.5684: short term Fibonacci 50% support.• 1.5641: short term Fibonacci 61.8% support.Resistance:• 1.5834: the falling trend line from yesterday’s top on intraday charts.• 1.5922: Aug 3rd high.• 1.6000: psychological level.---Forex Trading Analysis written by Munther Marji for ForexPros. ---Disclaimer:Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More

ForexPros Daily Analysis September 27, 2010Euro DollarThe Euro topped at a 5-month high on Friday, hitting a high of 1.3497, just pips before the important Fibonacci level for the medium term. Last week, we had analyzed the medium-long term, and after doing all the necessary analysis using classical technical analysis, Elliot & Fibonacci, we found that most probably the first leg up from 1.1875 to 1.3332 is wave A of a 3-wave correction up. We also found that, most probably, the drop which followed is wave B, which stopped at Fibonacci 50% level of wave A with not-so-well kind of accuracy as it bottomed at 1.2586 whereas the Fibonacci level was 1.2604. If this move has stopped closer to the Fibonacci level, we would have expected this current rise from the first step it took around 1.26. So, currently, we are in wave C, which will ideally target the equality level (were wave A = wave C) which is at 1.4043, or the Fibonacci 61.8% level for the massive drop from 1.5143 to 1.1875 which is at 1.3895, or the top of the rising channel on the daily chart, which is currently at 1.3794 and will rise with time. This leaves the area between 1.3895 & 1.4043 as the proffered target area for this wave. We do believe we are heading there on in a matter of weeks. We expect to reach the target area by December, which is a month famous for introducing medium & long term tops for EURUSD. From there we could see the Euro collapsing and dropping to areas below 1.18, but it is too early to talk about this issue now, and we will leave the next stage discussion to a more appropriate time. Back to short term analysis: support is at the Asian session low of 1.3445, and resistance is at the medium term Fibonacci level of 1.3509.If we take the resistance, then the trend goes on, and we will target 1.3589 & 1.3690. But a break of the support will give way to a downward correction targeting 1.3366 & 1.3285.Support:• 1.3445: Asian session low.• 1.3366: Fibonacci 61.8% for the rise from 1.3285.• 1.3285: Friday’s low.Resistance:• 1.3509: Fibonacci 50% for the whole massive drop from 1.5143 to 1.1875.• 1.3589: Apr 1st & 2nd high.• 1.3690: Apr 12th high.---USD/JPYDollar/Yen retreated from 85.37 which was hit after rumors of an intervention, but as we said in our last report, this swift adventure could not be classified as a break of the what was them important level 85.28. In the wake of the FED’s statement late Wednesday, We broke below 85 for the first time after the intervention took us above it. We dropped to 84.94 immediately after the Fed, and then to 84.76 during the Asian session. But even after this move, the technical outlook has hardly changed, but speculators have! Dropping below 85 could mean that they are no longer fearful of the Japs, and they are ready for another round with them! But before breaking 84.03 the Yen’s strength will be subdued. On the other hand, the all important trend line falling from May 5th top, is currently at 85.21. The price has tried several times to break this line in the past few days without success. The Dollar needs to break this line in order to keep going. Simply said, breaking 84.03 or 85.21 is the single most important factor in determining the direction for the medium and short term. If we break 84.03, this means that the speculators have launched a new attack on the Japanese authorities, and that price will target the important 83.73 then 82.87. But, if the price managed to break 85.28 somehow, the technical outlook will change dramatically, and we will be heading to the important levels above 86, most important to us are 86.25 & 86.95.Support:• 84.03: Fibonacci 61.8% for the short term.• 83.33: Sep 8th low.• 82.87: Sep 14th low, and the low for the last 15 years.Resistance:• 85.21: the falling trend line from May 5th top on the daily chart.• 86.25: Jul 20th high.• 86.95: Jul 1st low.---GBP/USDAfter the market’s open, the Pound had hit the highest level since Aug 11th at 1.5843, and that came as a natural result of breaking the important 1.5728 in the second attempt on Friday. The technical indicators show a state of “overbnought” which leaves the possibility of a sharp correction there, but the short term trend is a rising one after breaking the 1.5728 level. This is why we strongly recommend not to pick sides today before breaking the specified support or resistance, and we believe that the short term direction will not show itself before a break! Short term support is provided by the 38.2% Fibonacci level of the micro-term at 1.5765. If this level is broken , we will drop to more important Fibonacci level at 1.5673 &1.5632. On the other hand, the top of the rising channel from Sep 21st low on the hourly chart could tackle this rise, but if it gives way then the party will continue! The top of the channel is at 1.5871, and if broken we will jump to 1.5965 & 1.6000.Support:• 1.5765: Micro term Fibonacci 38.2% level• 1.5673: short term Fibonacci 50% support.• 1.5632: short term Fibonacci 61.8% support.Resistance:• 1.5871: the top of the rising trend channel on the hourly chart.• 1.5965: Aug 3rd high.• 1.6000: psychological level.---Forex Trading Analysis written by Munther Marji for ForexPros. ---Disclaimer:Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More

ForexPros Daily Analysis September 23, 2010Free webinar on ForexPros - Top 12 Golden Trading Tips: Start Your Day on the Right Side of the MarketExpert: Stephanie RadkayWhen: Mon, Sep 27, 2010, 11:00 GMTTrading can be as risky as flying a plane. Pilots use a checklist to get off the ground and so should traders. Here is your 12 tip checklist to give you the confidence and the best opportunity for success. In this webinar Stephanie Radkay, CME Floor Broker, Screen Trader and Educator, will address personal vs. market risk like you've never seen it before, her Rotating Directional Trading System (RDS) and 10 other golden nuggets that have been used successfully since 1993.---Euro DollarThe Euro broke the resistance specified in yesterday’s reports 1.3332, and reached our suggested target of 1.3414 with complete success. This pair had broken an important resistance at 1.3118 on Wednesday, but it was not until the FED issued its statement that it literally “exploded” in the face of the Dollar! Reaching 1.33 once again has pushed us to revisit the long term analysis, and after doing all the necessary analysis using classical technical analysis, Elliot & Fibonacci, we found that most probably the first leg up from 1.1875 to 1.3332 is wave A of a 3-wave correction up. We also found that, most probably, the drop which followed is wave B, which stopped at Fibonacci 50% level of wave A with not-so-well kind of accuracy as it bottomed at 1.2586 whereas the Fibonacci level was 1.2604. If this move has stopped closer to the Fibonacci level, we would have expected this current rise from the first step it took around 1.26. So, currently, we are in wave C, which will ideally target the equality level (were wave A = wave C) which is at 1.4043, or the Fibonacci 61.8% level for the massive drop from 1.5143 to 1.1875 which is at 1.3895, or the top of the rising channel on the daily chart, which is currently at 1.3794 and will rise with time. This leaves the area between 1.3895 & 1.4043 as the proffered target area for this wave. We do believe we are heading there on in a matter of weeks. We expect to reach the target area by December, which is a month famous for introducing medium & long term tops for EURUSD. From there we could see the Euro collapse and drop to areas below 1.18, but it is too early to talk about this issue now, and we will leave the next stage discussion to a more appropriate time. Back to short term analysis: resistance is at 1.3438, if broken then this rally will go on, and will target a very important Fibonacci level at 1.3509, then 1.3625. Support is at 1.3381, and if broken a correction is due, with ideal targets at 1.3281 & 1.3184.Support:• 1.3381: Asian session low.• 1.3281: Fibonacci 38.2% for the rise from 1.3027.• 1.3184: Fibonacci 61.8% for the rise from 1.3027, and the rising trend line from Sep 10th low on the hourly chart. The single most important support at the moment without a doubt.Resistance:• 1.3438: Yesterday’s top.• 1.3509: Fibonacci 50% for the whole massive drop from 1.5143 to 1.1875.• 1.3625: Mar 19th high.---USD/JPYThis pair has praised our analysis yesterday as it “stole” the low from our report. Bottoming at 84.25, the same exact level we specified as support, down to the pip! Later, it consolidated above this level. In the wake of the FED’s statement late Wednesday, We broke below 85 for the first time after the intervention took us above it. We dropped to 84.94 immediately after the Fed, and then to 84.76 during the Asian session. But even after this move, the technical outlook has hardly changed, but speculators have! Dropping below 85 could mean that they are no longer fearful of the Japs, and they are ready for another round with them! But before breaking 84.03 the Yen’s strength will be subdued. On the other hand, the all important trend line falling from May 5th top, is currently at 85.28. The price has tried several times to break this line in the past few days without success. The Dollar needs to break this line in order to keep going. Simply said, breaking 84.03 or 85.28 is the single most important factor in determining the direction for the medium and short term. If we break 84.03, this means that the speculators have launched a new attack on the Japanese authorities, and that price will target the important 83.73 then 82.87. But, if the price managed to break 85.28 somehow, the technical outlook will change dramatically, and we will be heading to the important levels above 86, most important to us are 86.25 & 86.95.Support:• 84.03: Fibonacci 61.8% for the short term.• 83.33: Sep 8th low.• 82.87: Sep 14th low, and the low for the last 15 years.Resistance:• 85.28: the falling trend line from May 5th top on the daily chart, and short term Fibonacci 61.8% level.• 86.25: Jul 20th high.• 86.95: Jul 1st low.---GBP/USDThere is absolutely no change to the technical outlook provided yesterday. In spite of the FED, in spite of the Euro soaring to 1.33, and the Swiss Franc breaking above parity with the Dollar, the Pound did not break, or even test 1.5728. This charming resistance will still be our most important level for now, there is nothing more important. The Pound jumped strongly (As everybody else did) after the FED, breaking through 1.56 and topping very close to 1.57 (the high at the moment of preparing this report is 1.5697). But , even with all this action, the technical outlook will not change before breaking 1.5728. Currently, and as we said in previous reports, we do not say that the Pound is weak, but it is surely vulnerable as long as it is trading below 1.5728, it could collapse any minute! Only a break of 1.5728 will change this sad status, and if we get this all important break, we will soar to 1.5854 first, then to 1.5906. On the other hand the support is at 1.5662, and a break here will initiate a correction for yesterday’s spike, targeting the important 1.5576 first, then 1.5448.Support:• 1.5662: the rising trend line from yesterday’s low on intraday charts.• 1.5576: short term Fibonacci 61.8% support.• 1.5448: Sep 15th low, a well known support area.Resistance:• 1.5728: Fibonacci 61.8% for the whole drop from Aug 6th top.• 1.5854: Aug 4th low.• 1.5906: Aug 10th important top.---Forex Trading Analysis written by Munther Marji for ForexPros. ---Disclaimer:Trading Futures and Options on Futures and Cash Forextransactions involves substantial risk of loss and may not be suitable forall investors. You should carefully consider whether trading is suitable foryou in light of your circumstances, knowledge, and financial resources. Youmay lose all or more of your initial investment. Opinions, market data, andrecommendations are subject to change at any time.See More