Premium Webinar - Sharpening Your Edge: Recognizing the Candlestick Patterns

Expert: Andrei Pehar

Date: Thu, Sep 17, 2009, 11:00 EST

Learn to predict where price is likely headed next using the only 6 candlestick patterns you ever need to know.  No more need to memorize dozens of patterns or go through stacks of books - just about every other formation you'll run across in your trading is a variation of these basic 6, and once you know them you'll be able to recognize the early warning signs of both continuations and reversals.

Join leading fund manager and trading coach Andrei Pehar for this next exciting installment of the Sharpening Your Edge series.

Click here to join the webinar.

---

Euro Dollar

The Euro survived the test of short-term Fibonacci support, and as we have expected, started a correction move up, without breaking 1.4300, and stopped just 8 pips below what we have called the most important resistance in yesterday's report. The above mentioned support at 1.4183 will still be the most important for short-term, because a break here will give way to an attempt to reach a lower bottom, below Aug 17th low 1.4045. On the other hand, EURSUD could continue correcting the last drop, and if this move up is corrective as we suspect, it should not break 1.4300, as we can say that this is the most important resistance for the time being. If broken, this move up cannot be classified as a short-term correction, and it will have the ability to fly above 1.44 before the end of the week.

Support:

  • 1.4230: Fibonacci 61.8% for the micro-term.
  • 1.4183: Fibonacci support 61.8%, the most important support for short-term.
  • 1.4135: The rising trendline from July's low.

Resistance:

  • 1.4300: Fibonacci 61.8% for the short-term, the most important resistance for now.
  • 1.4352: the falling trendline from Augusts' high.
  • 1.4412: the most important resistance in the wide and crowded resistance area 1.4362-1.4446.

---

USD/JPY

As we have expected in yesterday's report, USDJPY broke the 92.50/92.53 support on 3rd attempt, but the drop to follow was undersized, and could not test the important support area 91.73-91.76. Although this move was smaller than expected, all other things indicate that we are running in a flawless downtrend that is facing no problem. The bottom of the current channel is below 91 now, and the top is at resistance 93.04. It is mandatory to stay inside this channel and below the most important resistance at the moment 93.04. The downtrend will gain more confidence once we break the nearby support 92.06.

Support:

  • 92.06: short-term support.
  • 91.73-91.76: Strong, important support area that combines July 8th, 10th & 13th lows.
  • 90.72: the bottom of the falling channel from Aug 7th high.

Resistance:

  • 93.04: The trendline falling from Aug 9th, the most important resistance for short-term.
  • 93.66: Aug 19th low.
  • 94.19: Aug 17th low.

---

Forex trading analysis by Forexpros - Written by Munther T. Marji

---

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.