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Forexpros Daily Analysis - 03/08/2010

Discussion in 'Forex Daily News & Outlook' started by forexpros2, Aug 3, 2010.

  1. forexpros2

    forexpros2 Member

    Oct 20, 2009
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    ForexPros Daily Analysis August 03, 2010

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    Fundamental Analysis: Unemployment Rate

    The Unemployment Rate is a measure of the percentage of the total labor
    force that is unemployed but actively seeking employment and willing to work
    in New-Zealand.
    A high percentage indicates weakness in the labor market. A low percentage
    is a positive indicator for the labor market in New-Zealand and should be
    taken as positive for the NZD. The analysts predict a future reading of


    Euro Dollar

    The Euro broke resistance specified in yesterday's report 1.3086, and came
    very close to hitting the suggested target of 1.3200, but it stopped only 6
    pips before it, then it spent the night in a tight range between 1.3183 &
    1.3150. With this, the Euro jumped strongly, but this jump has not reached
    its target yet. Naturally, we expect more of the same today, and soaring
    above 1.32. But, before we get overexcited, we must wait for a break of the
    falling trend line from yesterday's top on intraday chart, which is running
    currently at 1.3174. If we do break this line, the Euro will start rising
    again, and we will target 1.3266 first, and may be at a later time 1.3325.
    On the other hand, short term 38.2% Fibonacci level at 1.3112 will be our
    support of the day. If broken, a correction will be initiated, and the price
    will start giving up yesterday's gains. This will target a test of a very
    noteworthy trend line at 1.3040. If this is also broken, the positive
    technical outlook will change dramatically, and we will target 1.2952.

    * 1.3112: Fibonacci 38.2% for the rise from Friday's low.
    * 1.3040: the rising trend line from Jun 29th low, and also Jul 28th high.
    * 1.2952: a well known previous support resistance, which includes several
    daily highs and lows, among those Jul 27th high, and Jul 15th low.

    * 1.3174: the falling trend line from yesterday's high on intraday charts.
    * 1.3266: Apr 25th important bottom.
    * 1.3325: Apr 7th low.



    No change! Nothing of any technical importance took place yesterday,
    therefore, we still hold the same technical outlook we did yesterday. After
    we have clearly surpassed wave 5 bottom, the correction we have been
    monitoring for the past days is finally over, and it is official: we are in
    a new down wave! But the bounce from Friday's low 85.93, which is closing on
    the important resistance 86.81 this morning, warns of a correction to what
    we have seen of the new wave so far (the drop from 88.10 to 85.93).
    Nevertheless, with a correction in these areas, or without, dropping far
    below 86 and may be below 84.81 itself has turned into a most probable
    scenario. The resistance which will determine if this bounce from Friday's
    low will go on or stall, is 86.81. If broken, the Dollar will keep shooting
    higher, targeting 87.49 & then what we imagine as the "ceiling" for the
    price at this stage 88.10. But, if we break the exciting support 86.25
    instead, we will start dropping to areas below Friday's low, we find 85.52 &
    84.81 to be the most attractive of which.

    * 86.25: Jul 16th low, just 2 pip below Thursday's low.
    * 85.52: the falling trend line combining the daily lows of Jul 1st & 16th.
    * 84.81: Nov 27th 2009 low, and the low of the last 15 years.

    * 86.81: Jul 26th & 27th lows, and an obvious hourly support.
    * 87.49: Jul 29th high.
    * 88.10: Jul 28th top.


    Forex trading analysis written by Munther Marji for Forexpros.



    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
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