Free webinar on ForexPros - Inter-Market Analysis and 2010 Forecast for theDollar and Commodities
Expert: Nour Eldeen M. Al-HammouriWhen: Thu, Mar 25, 2010, 15:00 GMT
In this webinar Nour Eldeen M. Al-Hammouri will discuss the Inter-MarketAnalysis and markets relationships. He will relate to the issue of how touse Moving Averages to track the best support and resistance area, whichwill be a signal for the Buy areas or Sell areas.
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Fundamental Analysis: Existing Home Sales
Traders of the US anticipate the publication of the existing home salesreport. It measures the annualized number of existing residential buildingsthat were sold during the previous month.This report helps to analyze the strength of the US housing market, whichhelps to analysis the economy as a whole.A higher than expected reading should be taken as positive/bullish for theUSD, while a lower than expected reading should be taken as negative/bearishfor the USD. Analysts predict a future reading of 5.00M.
The Euro retreated, breaking the support specified in Friday's report1.3597, dropped as expected but settled for 1.3501, a whole 21 pips abovethe suggested target 1.3480. But what took place was a confirmation thatreaching 1.38 has caused the Euro a lot of exhaustion. In addition to thefact that the Reversal Day pattern which took place on Wednesday was heavyon the pair. We can see on the attached daily chart that we are tradingwithin a pretty harmonized channel, and it is exciting to see that thebottom of this channel is at 1.30, so are we heading there? The continuousshine of the Dollar, and the extreme strength it showed on Friday againstthe Pound in specific, and also against the Euro indicate that we areprobably getting there> As for the short term, the support is at Friday's low 1.3501, and if broken, the drop will resume, targeting the importantsupport, which has a few bottoms just above it: 1.3422, and then 1.3341. Asfor the resistance it is at 1.3542, and breaking it would indicate that theprice will correct the big drop, with the ideal targets for this correctionare 1.3621 & 1.3696.
Support:* 1.3501: Friday's low.* 1.3422: May 18th low.* 1.3341: May 8th low.
Resistance:* 1.3542: Asian session top.* 1.3621: Fibonacci 38.2% for the short term.* 1.3696: Fibonacci 61.8% for the short term.
The Dollar-Yen approached the magnetic resistance 90.78 once again onFriday, as the daily high formed only 8 pips below it. The price did notmove much afterwards, in a price behaviour reminding us of the boredom whichwe lived with this pair recently. Last week, we adjusted the lines thatframe the current area, to make the upper limit at Monday's & Thursday's top90.78, which is very close to last Wednesday's top 90.80, and close toFriday's top 90.70. The lower limit is provided by the rising trend linefrom 89.61 on the hourly chart, which has been tested several time, beforebeing broken. This line is currently at 90.33. In case we break the magneticresistance 90.78 we will see the Dollar take control, and drive this pairhigher, as we see it targeting the important 91.60 first, then 92.31 whichis important as well. But in case we broke the rising trend line at 90.33,the price will resume yesterday's fall which halted at 89.74, confirming thenegative technical outlook which we cheered for all this week. This fall isexpected to target 89.37 & 88.53.
Support:* 90.33: the rising trend line from 89.61 on the hourly chart.* 89.37: Mar 2nd low* 88.53: Feb 4th low.
Resistance:* 90.78: Monday's high.* 91.60: Oct 29th high.* 92.31: Oct 27th high.
Forex Trading Analysis written by Munther Marjifor ForexPros.
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