by Johan Kriek (

Firstly, I would like to wish everyone at FXInstructor and everyone else on the Web a prosperous 2009! Have a good one!

Herewith the Studies for today:

Key notes:

- Eurozone inflation drops to 26year low, EUR falters

- Fed minutes reveal low rates to last longer

- Watch Eurozone PPI today as it can have the same effect as CPI yesterday

Probability Studies:


No trade zone within a Bearish Probability. As long as the 60minute trend remains bearish we will have a bearish direction of highest probability on the EUR. At this point in time I can see the 1 hour Stochastic is bullish and therefore the no trade zone. As soon as the Stoch turns bearish again the EUR will be situated in a suitable bearish trading condition. Keep and eye on the PPI which will be released later today in Euroland as it is a significant inflation gauge


No trade zone, Bullish Probability. Price is finding moderate resistance as it approaches the bearish Current Trend resistance line (blue line) at 1.5100 even though it still has some room to move to the upside. A bullish 1 hour Stochastic will place this one in a bullish trading condition once again. Also, I see a Broadening formation on the 4 hour chart:


Even though we do not know where this pattern will break out, the break will surely be volatile and far reaching. So be careful once price approaches the upper or lower resistance lines at 1.5900 and 1.4200 respectively


No trade zone, Bullish Probability. Even though the 1 hour stochastic is bullish which suggests a trading condition is at hand, I would like to see the bearish Current Trend resistance line at 1.1260 taken out first. Nevertheless, the probability remains bullish


Bullish Trading Condition. The 60minute trend is bullish and the bullish 1 hour stochastic signals that market rhythm could trend higher from here. You will have a sudden no trade zone as soon as the 1 hour Stoch turns South

Enjoy your trading day today. Keep an eye on the US ADP Employment change as it could indicate what we might expect on Friday’s NFP

See you in the Live Trading Room here at FXinstructor

Johan Kriek