Forexpros.com Daily Analysis - 20/01/2011

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ForexPros Daily Analysis January 20, 2011


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Start: Thu, Jan 20, 2011, 10:00 ET
End: Thu, Jan 20, 2011, 11:00 ET

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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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