Forexpros.com Daily Analysis - 03/05/2010

[forexpros]

ForexPros Daily Analysis May 3, 2010


Free webinar on ForexPros - "Money Management for Forex & Futures"

Expert: Mark Hodge, Rockwell Trading
When: Wed, May 12, 2010, 10:00 EST

Money Management is one of the keys to becoming a consistent and self-sufficient trader. But many traders are unaware of what money management really is and how it can have a dramatic effect on growing and protecting their trade equity. In this FREE webinar, Mark Hodge (Head Coach of Rockwell Trading) will cover the following important topics:

* What money management is and what it isn't
* Share several different money management techniques
* Show why Fixed Ratio Money Management is his favorite

This webinar is #2 in a 3-part educational series brought to you by Rockwell Trading.

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Fundamental Analysis: RBA Rate Statement

Australian traders anticipate the publication of the monthly interest rate statement. The Reserve Bank of Australia's monthly interest rate statement describes its latest decision regarding changes to the country's short term interest rates, monetary policy, and the direction of the economy. Short term interest rates are the key factor in currency valuation. A dovish statement could push AUD down against its rivals, while hawkish statement could boost the currency.

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Euro Dollar

The Euro broke the hourly chart descending channel on Friday, at 1.3307. But such a break was expected to achieve more than the 40 pips it did! Sadly, the Euro frustrated supporters by going back inside the channel, but it left it with an exciting stop very close to short term 61.8% Fibonacci level at 1.3202 (the low until the moment of preparing this report is 1.3204). Thus, the chances of going up still exist, and they totally depend on this support. We will place most of our attention at 1.3202. If it holds, the price will try once more to break the channel and trade above its top which is running currently at 1.3271. If this most important resistance for the short term is broken, the Euro will jump to 1.3354 first, and may be to 1.3434 as well. On the other hand, a break of the most important level for today 1.3202, will lead the price south, deeper inside the channel, dropping to the important 1.3113 first, and then to 1.3050, the last important support before the 1.30 landmark.

Support: