ForexPros Daily Analysis January 19, 2011


Free webinar on ForexPros - Strategy Rules for Short Term Forex Trading

Expert: Sam Seiden

Start: Thu, Jan 20, 2011, 10:00 ET
End: Thu, Jan 20, 2011, 11:00 ET 

During this session, we will cover a simple set of rules that anyone can use for short and long term trading in the Forex market. After we go over these rules, we will go into the live market and apply them.

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Euro Dollar:

On the daily, the euro is in an extension long and has bounced of its 50% long at 1.324, and has a target of 1.35647. This coincides with the greater 50% short at 1.35734, with a target at 1.25385. Former high of 1.35027 may serve as resistance.

In measured moves long best seen on the 15 min chart. Currently bouncing off its 50% long at 1.33583, with a target at 1.35189.

Pound: 

The pound has had an even stronger surge than the euro and is ripping through September highs. The pound has clearly broken its short setup and its target from the 50% long at 1.52622 is a whopping 1.67949. The pound may find resistance at these levels, which coincide with  previous highs in August  and October as well as resistance at the previous high at 1.63.

On the 15 min chart, the pound is in steady measured moves long since Jan 11. It has bounced off its 50% at 1.59335 and has a target at 1.61167, though it has yet to break previous high at 1.60588.

Yen:

On the daily, the yen has been in steady measured moves short, and hit its target at 23.6%.
A 50% long at 82.304 is still acting as support but the yen broke through today.
The line in the sand that would confirm the short is 81.976.

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Forex Trading Analysis written by Diana Rochford for ForexPros. For more information about technical analysis visit ForexPros.

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