ForexPros Daily Analysis December 20, 2010


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Fibonacci ratios are a very popular tool among technical traders and price has an uncanny way of respecting Fibonacci ratios.
There are different kinds of Fibonacci ratios like, retracements, expansions, projections, fans etc, and each of them have a different characteristic and a different use.

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Euro Dollar:

Friday's action seems to confirm the short at 1.33777, with a target of 1.27715. I would like to see a close below 1.31445 to confirm the short.

On 15 min chart in next measured move short, an extension with 50% at 1.31873, with target at 1.31084. If it breaks 1.32009, we can go full half way back short at 1.33136.

Pound:

Pound short is in full swing. On Friday, pound broke previous lows at 1.55039, but closed above it. Target for 50% short at 1.58919 is at 1.52892. Pound currently in next measured move short.

On 15 min chart, Pound reacting to next 50% short at 1.55452 (with daily pivot at 1.55439) and target at 1.54374. If we break the measured move (1.55674) pound could go full half way back at 1.56793.

Yen:

Still stuck in its wide range between 50% long of 82.345 and 50% short of 84.592. Currently bouncing off 50% long at 83.667 (within the range), with a target of 84.78.

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Forex Trading Analysis written by Diana Rochford for ForexPros. For more information about forex news visit ForexPros.

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