ForexPros Daily Analysis July 18, 2011


Free webinar on ForexPros - High Performance Trading for a Busy Lifestyle

Expert: Travis McKenzie

Start: Mon, Jul 18, 2011, 13:00 GMT
End: Tue, Jul 19, 2011, 14:00 GMT

Travis McKenzie will demonstrate the trading strategies and techniques he uses on a daily basis to fit trading into a busy lifestyle. He will discuss in detail his Precision Lifestyle Strategy which is a simply but extremely powerful combination of technical analysis tools which can be applied to any market and any timeframe. He will also dispel the myth that you can't earn a full time income from part time trading.

Click here to join free

---

Commodity Currencies Will Be Bought Once S&P Consolidation Completes

The markets are consolidation as Japan was closed for holidays.  But looking from a little bit larger perspective we may see dollar shorts soon, especially if commodities will remain bullish. The main reason for lower dollar is also a stock market, where S&P500 shows corrective price action on a daily. We are monitoring a triangle consolidation, and once this will complete, majors will rally. At the moment, wave E) of (4) still not done, as shown on the attached chart below.

Once the stocks will find buyers, commodity currencies such as Australian and Canadian dollar will find the support.

Aud/Usd Comments:

Aud/Usd bounced sharply higher at the end of June from 1.0389, where corrective wave (4) appears complete. Well, first impulsive leg found highs just below 1.0800 region, which was wave 1/A as labelled on the chart. As such, current price action must be corrective, with wave (c) underway that may test 1.05 once again, before uptrend resumes. We can also see a blue trend line in that area, that will also tend to react as a support.

Usd/Cad Comments:

After a sharp reversal from above 0.99, Usd/Cad made a nice corrective a-b-c pull-back within wave 2) that found the top at the trend line connected from 2011 lows. From there we can see an impulsive qualities, and if our count is correct, then pair should hit much lower levels in days ahead, as wave 3) appears to be underway with minimum targets seen at 0.94.

---

Forex Trading Analysis written by Gregor Horvat for ForexPros. For more information about forex news visit ForexPros.

---

Visit Forexpros new Forex Brokers Directory !

---

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.