Forexpros.com Daily Analysis - 29/06/2011

Forexpros04

Master Trader
Mar 31, 2009
428
0
47
ForexPros Daily Analysis June 29, 2011


Today: Free webinar on ForexPros - Jeff’s My Theory of Trading

Expert: Jeff Quinto

Start: Wed, Jun 29, 2011, 08:00 CST
End: Wed, Jun 29, 2011, 09:00 CST

In order to be successful trading over the long term, you need to have a Theory of Trading that defines how you believe the market operates and outlines how you are going to capitalize on the opportunities the market presents to you. In this exciting webinar, Jeff gives his theory to get you started in developing your own unique Theory of Trading.


Click here to join free

---

Possible Descending Channel in NZD/USD

With the financial world focusing on Greece, it is of no surprise that the European currencies are among the most volatile now. The Euro responds sharply to every news release, while the Swiss Franc keeps making new all time highs against other majors, just as the Australian Dollar used to do only few weeks ago.

Away from the headlines, the New Zealand Dollar has settled down into a trading range. This currency made an all time high against the US Dollar in early July, at 0.8303, but has pulled back since, dropping to 0.7971. That top, even if temporary, was nicely marked by divergences between the price and the technical indicators.

For a while, this pullback in the
NZD/USD gave an appearance of a flag, a continuation pattern, suggesting the resumption on the uptrend. However, by now, the price has formed a descending channel, which changes the sentiment from bullish to bearish, at least in the short term.

So far, this channel has four contact points with the price, a minimum number needed to establish this pattern. If another one forms, this channel will become even more significant, and likely to guide the NZD/USD even lower. This formation does not provide objective of how low the price might get, but it is a valuable tool to help determine the market’s direction.

---


Forex Trading analysis written by Mike Kulej for Forexpros.

---

Visit Forexpros new
Forex Brokers Directory !

---

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.