ForexPros Daily Analysis February 24, 2010
Free webinar on ForexPros – Mapping Out the Banking System & Foreign Exchange Dealing Process, Part II.
Expert: Dan Cook
When: Today, Feb 24, 2010, 11:00 EST
In the second installment of the Webinar ‘Mapping Out the Banking System & Foreign Exchange Dealing Process’, Dan Cook will take a deeper dive into the Foreign Exchange Market. Cook will start by discussing the interbank system and how it differs in form and functionality to the centralized exchange models used for trading stocks and commodities. From there, he will focus on broker-level dealing and discuss how retail brokers, whether ECN’s or Dealing Desk models, make money.
Cook will also take an inside look at dealing desks and speak frankly about the roles and responsibilities of a retail dealing desk, which will include an overview of how brokers hedge currency exposure. The goal of this Webinar is to help traders understand the nuances of the Forex market by shedding light on many of the aspects of currency trading that have previously been shrouded in mystery.
Click here to join free.
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Fundamental Analysis: Fed Chairman Bernanke Testifies
Traders of the US look forward to Ben Bernanke, US Federal Reserve Chairman, who will be testifying in Washington DC, regarding America’s economic outlook and financial markets.
His comments may determine a short-term positive or negative trend.
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Euro Dollar
The Euro broke the resistance specified in yesterday’s report 1.3653 and came close to 1.37, before a total reversal took place, and the Euro fell so hard, breaking the support 1.3612, and reached the first suggested target 1.3544 successfully, and stopped only 4 pips before the second. After this collapse, we ask ourselves, will the Euro be able to bounce back? The most important support for the short term is at 1.3514, where there is the rising trend line from Friday’s low. If this line is broken, the fall will continue, targeting areas below the latest bottom 1.3442, most important of which for today are 1.3422 & then 1.3338.The resistance is provided by the short term 61.8% Fibonacci level at 1.3615. If broken, then the odds of breaking the important trend line demonstrated on the attached chart will be huge, and the price will jump to 1.3689 & 1.3787.
Support:
• 1.3514: the rising trend line from Feb 19th low on intraday charts.
• 1.3422: May 18th low.
• 1.3338: Apr 29th high.
Resistance:
• 1.3615: Fibonacci 61.8% for the short term.
• 1.3689: Feb 23rd high.
• 1.3787: Feb 17th high.
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USD/JPY
Dollar-Yen broke the support specified in yesterday’s report 90.55, and reached the first suggested target 89.90 with an unbelievable accuracy (yesterday’s low was exactly 89.90). This support, which represents short term 61.8% Fibonacci level, will be the most important support for today. If broken, the drop that started with the “Reversal Day” pattern will carry on. The next set of targets will be 89.22 & may be 88.53. But if we hold above yesterday’s low, the odds of rising will be huge, even if for a correction. And if this turns out to be a rising correction, the ideal target would be at 91.02, and also, we could see a visit to the previous well known support/resistance area 91.63.
Support:
• 89.90: Fibonacci 61.8% for the short term.
• 89.22: Feb 10th low.
• 88.53: Feb 4th low.
Resistance:
• 90.28: Asian session high.
• 91.02: Fibonacci 50% for the short term.
• 91.63: previous well known support/resistance area.
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Forex Trading Analysis written by Munther Marji for ForexPros.
For information on US dollar index see ForexPros.
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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.