ForexPros Daily Analysis January 10, 2011
Today: Free webinar on ForexPros - Trading Bull Spreads on Currencies
Expert: Dan Cook
Start : Mon, Jan 10, 2011, 10:00 ET
End : Mon, Jan 10, 2011, 11:00 ET
Have you ever felt like the forex market has eyes? It can somehow find your stop, just before it changes direction and moves in what would have been your favor. As a result, have you struggled with risk management and where to place a proper stop? Have you placed an order to buy or sell in what seemed like calm markets only to watch volatility spike and price whipsaw you right out of your trade while slipping your stop?
If you have been trading currencies for more than a day or two, the answer to all of these questions is probably yes. In addition to these, currency traders face a multitude more questions and challenges on a daily basis. There are definitely no easy answers in any market, but one new product available through IG Markets on the North American Derivatives Exchange may help.
FX Bull Spreads are an exchange traded product that offers the benefits of effective leverage while allowing the trader exacting risk control measures. Additionally, since these are limited risk, options type contracts, traders do not have to worry about placing stops that could be taken out by a quick adverse market movement and thus afford themselves the time to be right.
During this 45-minute webinar, Dan Cook of IG Markets will introduce participants to the basics of the FX Bull Spread Product. Dan will explain how these simple contracts work and how they may compliment your current trading strategy or how they may even become the focal point of your trading strategy moving forward. Once the basics are covered, Dan will present a few strategies designed to utilize the unique structure of the FX Bull Spread product and will demonstrate how these strategies can be used in both calm and volatile markets.
Click here to join free
On the daily, the euro has been heading south from its 50% short at 1.33777, towards its target at 1.27715. The euro has hit resistance at the 1.29 level.
On the 15 min chart, the euro is still in shorts. The 50% of the next traditional short is at 1.29457 which coincides with the daily pivot at 1.29435, together they may provide resistance and hold the market down. The target on the short is at 1.28376.
On the daily, the pound is in measured moves shorts with the next targets at 1.52892 and 1.52104.
Over the past week, its been in messy setups, breaking its long and short setups. Best to let increased volume allow the pound to decide what direction it wants to go in.
Yen ( USD/JPY):
On the daily, the yen is still in a bullish formation, an extension long from 82.273, with a 50% at 82.984, with a target at 84.029. The 83.6-83.7 has served strong resistance in the past 2 months. The bigger 50% short is above at 84.592.
Forex Trading Analysis written by Munther Marji for ForexPros. For more information about forex news visit ForexPros.
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