ForexPros Daily Analysis January 17, 2011
New On Forexpros - All European Markets in one place. In this section you'll be able to find stocks in real time for the European countries.
Volume will be very low today since US markets are closed for Martin Luther King day. Futures and equities markets are closed which will affect trading setups. Analysis today is of the overall trend.
Low volume leads to less reliability in trading setups.
In the past 2 weeks, the euro dropped 400 pips and then rebounded 400 pips and is back at the initial 50%. Taking the new low into account, the euro clipped its 61.8% and reacted. The euro is currently in an extension long, best seen on the 15 minute chart.
On the 15 minutes chart, the euro is in a series of long measured moves, an extension long, from 1.3314, with a target at 1.35249. The line in the sand is at 1.32802. The full half way back of the long move is at 1.31655, with the 61.85 at 1.30966.
The pound is still inside its 50% short at 1.58204 and running into previous highs at 1.591. The line in the sand for the short is at 1.5933. The short has a target at 1.51181.
On the 15 minutes charts, the pound is still in a series of measured moves long and is bouncing off its 50% at 1.58479. The line in sand is at 1.5838.
On the daily, the yen is still in a long setup. On Thursday, the yen bounced of its 61.8% line at 82.402. The full half way back is close at 82.304, with a target at 84.35. Line in the sand for break of the longs is at 81.976.
Forex Trading Analysis written by Diana Rochford for ForexPros. For more information about forex news visit ForexPros.
Get the latest Forex News from the currency market!
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.