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Forexpros Daily Analysis - 22/03/2010

Discussion in 'Forex Daily News & Outlook' started by forexpros2, Mar 22, 2010.

  1. forexpros2

    forexpros2 Member

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    ForexPros Daily Analysis March 22, 2010


    Free webinar on ForexPros - Inter-Market Analysis and 2010 Forecast for the
    Dollar and Commodities


    Expert: Nour Eldeen M. Al-Hammouri
    When: Thu, Mar 25, 2010, 15:00 GMT

    In this webinar Nour Eldeen M. Al-Hammouri will discuss the Inter-Market
    Analysis and markets relationships. He will relate to the issue of how to
    use Moving Averages to track the best support and resistance area, which
    will be a signal for the Buy areas or Sell areas.


    Click here to join free.

    ---

    Fundamental Analysis: Existing Home Sales

    Traders of the US anticipate the publication of the existing home sales
    report. It measures the annualized number of existing residential buildings
    that were sold during the previous month.
    This report helps to analyze the strength of the US housing market, which
    helps to analysis the economy as a whole.
    A higher than expected reading should be taken as positive/bullish for the
    USD, while a lower than expected reading should be taken as negative/bearish
    for the USD. Analysts predict a future reading of 5.00M.

    ---

    Euro Dollar

    The Euro retreated, breaking the support specified in Friday's report
    1.3597, dropped as expected but settled for 1.3501, a whole 21 pips above
    the suggested target 1.3480. But what took place was a confirmation that
    reaching 1.38 has caused the Euro a lot of exhaustion. In addition to the
    fact that the "Reversal Day" pattern which took place on Wednesday was heavy
    on the pair. We can see on the attached daily chart that we are trading
    within a pretty harmonized channel, and it is exciting to see that the
    bottom of this channel is at 1.30, so are we heading there? The continuous
    shine of the Dollar, and the extreme strength it showed on Friday against
    the Pound in specific, and also against the Euro indicate that we are
    probably getting there> As for the short term, the support is at Friday's
    low 1.3501, and if broken, the drop will resume, targeting the important
    support, which has a few bottoms just above it: 1.3422, and then 1.3341. As
    for the resistance it is at 1.3542, and breaking it would indicate that the
    price will correct the big drop, with the ideal targets for this correction
    are 1.3621 & 1.3696.

    Support:
    * 1.3501: Friday's low.
    * 1.3422: May 18th low.
    * 1.3341: May 8th low.

    Resistance:
    * 1.3542: Asian session top.
    * 1.3621: Fibonacci 38.2% for the short term.
    * 1.3696: Fibonacci 61.8% for the short term.

    ---

    USD/JPY

    The Dollar-Yen approached the magnetic resistance 90.78 once again on
    Friday, as the daily high formed only 8 pips below it. The price did not
    move much afterwards, in a price behaviour reminding us of the boredom which
    we lived with this pair recently. Last week, we adjusted the lines that
    frame the current area, to make the upper limit at Monday's & Thursday's top
    90.78, which is very close to last Wednesday's top 90.80, and close to
    Friday's top 90.70. The lower limit is provided by the rising trend line
    from 89.61 on the hourly chart, which has been tested several time, before
    being broken. This line is currently at 90.33. In case we break the magnetic
    resistance 90.78 we will see the Dollar take control, and drive this pair
    higher, as we see it targeting the important 91.60 first, then 92.31 which
    is important as well. But in case we broke the rising trend line at 90.33,
    the price will resume yesterday's fall which halted at 89.74, confirming the
    negative technical outlook which we cheered for all this week. This fall is
    expected to target 89.37 & 88.53.

    Support:
    * 90.33: the rising trend line from 89.61 on the hourly chart.
    * 89.37: Mar 2nd low
    * 88.53: Feb 4th low.

    Resistance:
    * 90.78: Monday's high.
    * 91.60: Oct 29th high.
    * 92.31: Oct 27th high.

    ---


    Forex Trading Analysis written by Munther Marji
    for 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.
     
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