Forexpros Daily Analysis Dec 9, 2009
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Hosted by: Raghee Horner of Auto Chartist
Thu, Dec 10, 2009, 08:00 EST/13:00 GMT
Where are the currency markets headed? How can I take advantage of time and expected pip movement to identify opportunities? How to filter out and confirm set ups? What strategies can I employ to limit risk? Join Raghee Horner, a best-selling author and professional trader with over 15 years experience, as she applies unique trading methodology to helping you trade your views in the forex market. Raghee will also help you to identify the market cycle and learn to set up and use her 34ema Wave allowing you to effectively position yourself in the markets.
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Fundamental Analysis: Trade Balance Index
The US Bureau of Economic Analysis will release the Trade Balance index report Tomorrow (Dec 10), which measures the difference in worth between exported and imported goods (exports minus imports).
This is the largest component of the US's balance of payments.
Export data gives a reflection on the US growth. Imports provide an indication of domestic demand. Because foreigners must buy the domestic currency to pay for the nation's exports, it may have sizable affect on the USD.
Analysts expect tomorrow's Index to remain stable since last month, indicating a defacit of 36.50 Billions Dollars.
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Euro Dollar
The Euro slightly surpassed the resistance 1.4844 before completely surrendering to the downtrend. It dropped and successfully reached the first target 1.4724, and came somehow close to the second target 1.4649 (the low until this very moment is 1.4667). In spite of this big drop, we still have not made it yet to Fibonacci 38.2% for the long term (for the rise from 1.3747) at 1.4610. Short-term support is at 1.4649, and breaking it would mean we will be targeting the above mentioned Fibonacci level first at 1.4610, and then the support area 1.4510/1.4518 that includes several daily bottoms. Short-term resistance is at the Asian session high 1.4734, breaking it would mean that the Euro will have a chance to catch a breath after this big drop. Breaking this resistance will target at least 1.4847, and may be 1.4903 as well.
Support:
• 1.4649: Oct 7th low.
• 1.4610: Fibonacci 38.2% for the long-term (for the rise from 1.374).
• 1.4510: previous support area that includes several daily lows.
Resistance:
• 1.4734: Asian session high.
• 1.4847: Fibonacci 38.2% for the drop from 1.5139
• 1.4903: Fibonacci 50% for the drop from 1.5139
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USD/JPY
Dollar-Yen broke the rising trendline from 85.07 at 88.75 and successfully reached the first target 88.33. Breaking this line indicates there is a continuation of the downside pressures, that emerged after Friday’s top, and if it continues, we will break today’s support which is yesterday’s low 88.16, and would target Fibonacci 50% at 87.78 first, and may be the most important support for the time being : Fibonacci 61.8% for the whole up-move from 84.81 at 87.08. But as we can see from the attached chart, the drop stopped at the moving average SMA100, which could provide a chance for a bounce back up, in what could be (at least) a correction for the drop from Friday’s top. In this case the price will break intraday resistance at 88.48, and would ideally target the area that is bordered by Fibonacci 38.2% for the short-term at 89.15 & Fibonacci 61.8% at 89.76.
Support:
• 88.16: yesterday’s low.
• 87.78: Fibonacci 50% for the whole move from 84.81 to 90.75.
• 87.08: Fibonacci 61.8% for the whole move from 84.81 to 90.75.
Resistance:
• 88.48: intraday resistance.
• 89.15: Fibonacci 38.2% for short-term.
• 89.76: Fibonacci 38.2% for short-term.
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Forex Trading Analysis written by Munther Marji for Forexpros. For a comprehensive directory of Forex brokers see Forexpros.
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Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
________________
Free Webinar On Forexpros: Using Time and Patterns to Pinpoint Entry and Exit Points
Hosted by: Raghee Horner of Auto Chartist
Thu, Dec 10, 2009, 08:00 EST/13:00 GMT
Where are the currency markets headed? How can I take advantage of time and expected pip movement to identify opportunities? How to filter out and confirm set ups? What strategies can I employ to limit risk? Join Raghee Horner, a best-selling author and professional trader with over 15 years experience, as she applies unique trading methodology to helping you trade your views in the forex market. Raghee will also help you to identify the market cycle and learn to set up and use her 34ema Wave allowing you to effectively position yourself in the markets.
Click Here To Join Free
---
Fundamental Analysis: Trade Balance Index
The US Bureau of Economic Analysis will release the Trade Balance index report Tomorrow (Dec 10), which measures the difference in worth between exported and imported goods (exports minus imports).
This is the largest component of the US's balance of payments.
Export data gives a reflection on the US growth. Imports provide an indication of domestic demand. Because foreigners must buy the domestic currency to pay for the nation's exports, it may have sizable affect on the USD.
Analysts expect tomorrow's Index to remain stable since last month, indicating a defacit of 36.50 Billions Dollars.
---
Euro Dollar
The Euro slightly surpassed the resistance 1.4844 before completely surrendering to the downtrend. It dropped and successfully reached the first target 1.4724, and came somehow close to the second target 1.4649 (the low until this very moment is 1.4667). In spite of this big drop, we still have not made it yet to Fibonacci 38.2% for the long term (for the rise from 1.3747) at 1.4610. Short-term support is at 1.4649, and breaking it would mean we will be targeting the above mentioned Fibonacci level first at 1.4610, and then the support area 1.4510/1.4518 that includes several daily bottoms. Short-term resistance is at the Asian session high 1.4734, breaking it would mean that the Euro will have a chance to catch a breath after this big drop. Breaking this resistance will target at least 1.4847, and may be 1.4903 as well.
Support:
• 1.4649: Oct 7th low.
• 1.4610: Fibonacci 38.2% for the long-term (for the rise from 1.374).
• 1.4510: previous support area that includes several daily lows.
Resistance:
• 1.4734: Asian session high.
• 1.4847: Fibonacci 38.2% for the drop from 1.5139
• 1.4903: Fibonacci 50% for the drop from 1.5139
---
USD/JPY
Dollar-Yen broke the rising trendline from 85.07 at 88.75 and successfully reached the first target 88.33. Breaking this line indicates there is a continuation of the downside pressures, that emerged after Friday’s top, and if it continues, we will break today’s support which is yesterday’s low 88.16, and would target Fibonacci 50% at 87.78 first, and may be the most important support for the time being : Fibonacci 61.8% for the whole up-move from 84.81 at 87.08. But as we can see from the attached chart, the drop stopped at the moving average SMA100, which could provide a chance for a bounce back up, in what could be (at least) a correction for the drop from Friday’s top. In this case the price will break intraday resistance at 88.48, and would ideally target the area that is bordered by Fibonacci 38.2% for the short-term at 89.15 & Fibonacci 61.8% at 89.76.
Support:
• 88.16: yesterday’s low.
• 87.78: Fibonacci 50% for the whole move from 84.81 to 90.75.
• 87.08: Fibonacci 61.8% for the whole move from 84.81 to 90.75.
Resistance:
• 88.48: intraday resistance.
• 89.15: Fibonacci 38.2% for short-term.
• 89.76: Fibonacci 38.2% for short-term.
---
Forex Trading Analysis written by Munther Marji for Forexpros. For a comprehensive directory of Forex brokers see Forexpros.
---
Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
________________