Forexpros.com Daily Analysis - 02/02/2010

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Forexpros Daily Analysis February 2, 2010


Free webinar on ForexPros - Identifying Low Risk, High Reward, and High Probability Trading Opportunities For Swing and Longer Term Forex Traders.

Expert: Sam Seiden
When: Thursday, Feb 4, 2010, 11:00 EST

During this session, we will apply what we learned during session one to the world of swing and longer 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 for Forex swing and position trading.
This webinar is the last of a three part series brought to you by Online Trading Academy and Forexpros.

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Fundamental Analysis: ADP Nonfarm Employment Change

Traders of the US await the publication of the ADP National Employment Report. The report measures the monthly change of nonfarm private employment, based on a subset of aggregated and anonymous payroll data that represents approximately 400,000 U.S. business clients. This release, 2 days before the government-released employment data , is a good predictive to the government's non-farm payrolls data. The change in this indicator can be very 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 predict a reading of -40.00%, up from the previous -84.00%.

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[color=black]After the issuance of the last report, the Euro did not break any of the levels specified in the report. Looking at the hourly chart, we can see that the Euro, and before breaking 1.4014 last week, has stopped at the falling trend line from 1.4554 for a third time, which makes this line one that deserves attention. And now, we have yet another reason to pay attention to this line, which is the forth touch. The downtrend from 1.4577 will be dominant as long as we are below this line, which is currently at 1.3933, that