ForexPros Daily Analysis June 14, 2011


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Expert: Raul Lopez

Start: Wed, Jun 15, 2011, 09:00 EST
End: Wed, Jun 15, 2011, 10:00

We’ll analyze the market and look for trade opportunities based on a price action approach.

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How did I know exactly how the USD/JPY would act?

As I had estimated yesterday, the Yen touched the resistance of the trend line and made the hammer-doji candlestick in the daily. It seems to be a possible reversal level if the yen breaks-through the hammer's low at 80.0, which is also a psychological supporting number.

The Yen reached almost exactly the levels I had assumed it would reach, and even made the same candlestick I believed it would make. How could I know that the Yen would react like that? Obviously, I could not really know, but my experience helped me to estimate a potential scenario, and now I am well prepared to that.

My advice to you is the following: try to look at as many charts as you can. Draw simple resisting and supporting lines by back testing charts. Cover the right part of the chart with your hand, and try to predict the movement according to a certain pattern that you check, and see if you are right (do not try to predict a general movement- It has to be based on a specific pattern). In time, you will be able to estimate movements with high odds.

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Forex Trading Analysis written by Bastian Rubben for ForexPros. For more information about currency charts visit ForexPros.

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