Forexpros.com Daily Analysis - 07/06/2010

[forexpros]

ForexPros Daily Analysis June 7, 2010


Free webinar on ForexPros - Profit in Any Market Environment with Forex Options

Expert: Kris Matthews
When: Tuesday, June 8, 2010, 10:00 a.m. EST

In this webinar, Kris Matthews of Paradigm Macro Trading and coauthor of the book, "Trading the Forex Market with Options," will teach traders how to trade Forex options profitably and limit risk. If you have issues with making sense of the "randomness" of price action, often get stopped out when the market turns, and are looking for a way to spend less time trading but still would like to earn profits in any type of market, this webinar is for you.

.

---

Fundamental Analysis: Nationwide Consumer Confidence - GBP

European traders look forward to the publication of the UK Nationwide Consumer Confidence. It measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict the consumer spending, which is a major part in the total economic activity. Higher readings point to higher consumer optimism. The figure is calculated from a survey of about 1,000 consumers
A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP. Analysts predict a future reading of 78.00.

---



[color=black]As expected, the Euro broke the support 1.2152, and successfully reached both suggested targets 1.2068 & 1.2000. The Euro fell below 1.20 for the first time since March 2006, but this drop was not a surprise to anyone, according to the negative technical outlook which we have adopted in the past days & weeks. Breaking below 1.20 opens the door for guessing the long term targets in these areas, the question now is where are these targets? In our opinion, we believe that there is one target, one point, which stands out of the crowd, and that is 1.1211, which will be our target for the next few weeks. The importance of this level is that it is the 61.8% Fibonacci for the whole move from the historical low to the historical high. Short term support is at 1.1911, and if broken the Euro will continue its drop to 1.1825, and then 1.1754. The resistance is at 1.1963, and breaking it will give the chance for the Euro to catch a break, and rise to the important 1.2085 & 1.2161.

Support: