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ForexPros Daily Analysis January 20, 2011

Today: 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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The euro and pound are showing possible reversal patterns best seen on the 15 minute chart.

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On the 15 min, the euro is showing a possible reversal and is testing its long setup, breaking the trend of the past weeks. A break of 1.3425 is a break of the long the euro has been in. This may only be a reversal into the next long setup, but the play the trend as it lies. Currently the daily pivot at 1.3459 is holding down the market.

Pound:

On the 15 min chart, the pound is below the daily pivot testing its long and is showing a reversal pattern. The pound is in its second measured move short . A break of 1.59035 confirms the break of the long the pound has been in for the last 2 days. Technically on the daily the pound is still long, but this may reversal into next long setup. Always play the trend.

Yen:

On the daily, the yen is confirming its short, by breaking though its 61.8% at 81.976, though the line is currently acting as resistance. Will the yen march down to new lows or will we see a bounce here?

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Trading analysis written by Diana Rochford for Forexpros.

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