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Forexpros Daily Analysis - 19/08/2010

Discussion in 'Forex Daily News & Outlook' started by forexpros2, Aug 19, 2010.

  1. forexpros2

    forexpros2 Member

    Oct 20, 2009
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    ForexPros Daily Analysis August 19, 2010

    Free webinar on ForexPros - Trend. How to spot it and how to trade it.
    Support and resistance levels
    Expert: Stoyan Mihaylov
    When: Mon, Aug 23, 2010, 11:00 GMT

    It is a common belief, that "The trend is your friend". In order to profit
    from the trend you have to be able to spot it on the chart, recognize the
    time-frame it is derived from and to define all the important support and
    resistance levels. Walking with the trend is an easy and simple way to
    follow the market , which is the essence of the TA phenomenon.

    In this online webinar you will be able to participate actively in the
    discussion and to ask the questions you're interested in.

    The webinar will be conducted by Stoyan Mihaylov - financial analyst at
    Deltastock AD.

    Click here to join free


    Fundamental Analysis: Core CPI

    The Core Consumer Price Index (CPI) measures the changes in the price of
    goods and services excluding food and energy. The CPI measures price change
    from the perspective of the consumer. It is a key way to measure changes in
    purchasing trends and inflation in Canada.
    A higher than expected reading should be taken as positive/bullish for the
    CAD (as the common way to fight inflation is raising rates, which may
    attract foreign investment), while a lower than expected reading should be
    taken as negative/bearish for the CAD. The analysts predict a future reading
    of 0.10%.


    Euro Dollar

    The Euro's bounce from the bottom it reached shortly after the weekly open
    at 1.2733, halted yesterday at 1.2920. Such a rebound is considered very
    "modest" comparing to the drop it followed, which came very close to 600
    pips! We can clearly see that we have not even reached the first Fibonacci
    level 38.2%. Technically, the most important event was dropping, and now
    reaching, another important trend line, which is the rising trend line from
    June 7th low (please refer to the attached chart). This line which was
    tested accurately on Monday, is running now at 1.2793, and it was touched
    and slightly surpassed during the Asian session, with the price bottoming at
    1.2781. If this level is broken, we will be already on the way to break this
    week's low 1.2733 as we target 1.2660 first, then 1.2604. On the other hand,
    resistance is at 1.2867. Only with a break here will the Euro be able to
    move forward. If we get this break, we think that the price will rise with
    the target of reaching Fibonacci levels 1.2991& 1.3057.

    * 1.2793: the rising trend line from Jun 7th low on the hourly chart.
    * 1.2660: Jul 6th high.
    * 1.2604: Fibonacci 50% for the whole rise from 1.1875 to 1.3332.

    * 1.2867: important intraday level.
    * 1.2991: Fibonacci 38.2% level for the drop from the 3-month high of
    * 1.3057: Fibonacci 50% level for the drop from the 3-month high of 1.3332.



    Boredom is back! Boredom is here again! As we have seen in previous periods
    this year, the Dollar/Yen is back to trading in very tight ranges, it did
    not break any of the levels specified in yesterday's report. It approached
    85 but failed to make a break, it also stayed the whole time below the
    resistance 86.21. Let's leave the daily & weekly charts we have been
    obsessed with lately, and just focus on the hourly chart. We can see that
    there is a very exciting trend line, dropping from June 4th top. This line
    is running currently at 86.06. Therefore, all of our attention is at the
    exciting trend line & the importance it provides. As long as we are trading
    below this line, the downtrend will be ok, but if we break the resistance
    86.06 we will shoot up targeting 87.00 and may be 87.70. Where if we go back
    to trade below the support 85.35, we will target 84.70 first, and there will
    be nothing stopping the price from reaching our awaited target 83.85.

    * 85.35: the rising trend line from this week's low on the hourly chart.
    * 84.70: This year's low, and the lowest level since 1995..
    * 83.87: Fibonacci extension level 138.2% for the falling wave from 86.86,
    compared to the wave which started at 88.10.

    * 86.06: the falling trend line from June 4th top on the hourly chart, and
    Aug 10th top.
    * 87.00: Jul 7th low.
    * 87.70: June 26th 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
    may lose all or more of your initial investment. Opinions, market data, and
    recommendations are subject to change at any time.

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