[forexpros]

Forexpros Daily Analysis Jan 7, 2010


Free webinar TODAY on Forexpros - Identifying Low Risk, High Reward, and High Probability Trading Opportunities For Short Term Forex Traders.

Expert: Sam Seiden
When: Thu, Jan 7, 2010, 12:00 EST

During this session, we will apply what we learned during session one to the world of active short term trading in the Forex markets. We will walk through the trade selection process, applying our rule based strategy to identify price levels where demand and supply are out of balance and where profit margins are large offering us significant
risk/reward opportunities.
This webinar is the second of a three part series brought to you by Online Trading Academy and Forexpros.

to join free.

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Fundamental Analysis: Nonfarm Payrolls

Traders of the USD await the publication of the Nonfarm Payrolls report due out tomorrow (Jan 8).
The Nonfarm Payrolls measures the change in the number of employed people during the last month of all non-farming businesses. The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States.
It is the single most important piece of data contained in the employment report, which considered to offer the best overview of the economy.
The monthly changes and the revisions in payrolls can be quite volatile.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Analysts forecast a reading of -11.00K.

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[color=black]The Euro broke the resistance 1.4327 and reached our first suggested target 1.4406 successfully. But after reaching 1.4445 it came back to falling, as it is trading now around 1.4360. And with coming back to these areas, we once again assure the importance of 1.4264, and we will consider it the borderline between a continuation of the drop from 1.4482, or a bounce to the upside. But before it we should place our attention on 1.4344, and if broken a test of the important 1.4264 will be underway. If this important support is taken, we expect the Euro to drop towards 1.4176. But if it holds, a test of short term resistance 1.4394 will follow, and breaking it would lead to a rising move targeting 1.4485, which reversed the upside activity, and caused Tuesday