EuroEUR-USD @ 1.4336/42...Looking to buy near 200-DMA
R: 1.4373-93 / 1.4435-55 / 1.4535-55
S: 1.4312 / 1.4257 / 1.4222

Quiet day so far. Might remain quiet through the US session as well. Overall, the Euro is currently trading in a 1.42-45 range, with a slight bearish bias. At the moment, it is trading a little above the 100-week MA which comes in at 1.4303. Further, remember that 1.4223 is now the 200-day MA Support, off which the Euro had bounced just before X'mas. Below 1.4218, there is an important Support at 1.4118, the 38.2% retracement of the rise from 1.2457 (Mar-09) to 1.5144 (Nov-09).

The Euro has seen a good corrective fall of 6.1% in December which is almost equal to the 6.2% fall seen from the high of 1.3740 (Mar-09) to 1.2885 (Apr-09) which had also taken place over a month's time. Further, If we assume that a new upmove had started at 1.2456 on 04-Mar-09, then the current fall of Dec-09 could be termed as Wave-4 of the upmove with the final Wave-5 upmove still to come.

Therefore, a case ca n be built for buying the Euro in the New Year if the Support region of 1.4218-4118 holds.

Limit Buy Order:
Buy EUR 10K at 1.4225, SL 1.4160, TP Open
Buy EUR 10K at 1.4125, SL 1.4060, TP Open

YenUSD-JPY @ 92.23/28...Upcoming Resistances at 92.43 and 92.93
R: 92.43 / 92.70-93 / 93.82-95
S: 92.00 / 91.70 / 91.35 / 90.70

Dollar-Yen has risen a little further during the day and might a little more. If so, it would then test Resistances at 92.45 and at 92.70-93. These are relatively strong Resistances. While they hold, there can be chances of the market falling back towards 91.00 over the next couple of days. In case of a rise past 92.93, we could be looking at further gains towards 95.00 in the weeks ahead. However, it is to be noted that 92.93-93.00 is a very strong and crucial Resistance that might not break easily. The Resistance falls on trendlines on the Weekly Candles and can be seen on the last chart on the following page:

If we take the perspective that the market has risen 8.78% in just a little more than a month (from 84.81 on 27-Nov to 92.26 today), we may say th at there are decent chances of the Resistance at 92.93 holding. Some of the Dollar gains seen in December may need to be given back before the Dollar can mount a successful attack on the 93.00 Resistance.

EuroYenEUR-JPY @ 132.29/33...Resistances overhead.
R: 132.40 / 132.72-94
S: 132.02 / 131.83-56 / 131.33-03

The Cross has been rising steadily for the last several days, but at a slowing pace and is now faced with important Resistance at 132.75-95. Given that the Dollar-Yen upmove might stall (please see above), the Cross might also find it difficult to put up a further strong rise from here. If so, a dip back towards 131.35 or even 130.75 might be hoped for. On the other hand, in case of a surprise rise past 133.00, the Cross might then head up towards 134.50.

Forex Trader Library
Receive over 15 hours (8 CD's) of our best Forex trading education in one package! Containing the newest Advanced Forex CD, this education pack focuses on exactly what you need to know to become a successful Forex Trader.