Forexpros.com Daily Analysis - 27/09/2010

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ForexPros Daily Analysis September 27, 2010


Free webinar on ForexPros - Top 12 Golden Trading Tips: Start Your Day on the Right Side of the Market
Expert: Stephanie Radkay
When: Mon, Sep 27, 2010, 11:00 GMT

Trading can be as risky as flying a plane. Pilots use a checklist to get off the ground and so should traders. Here is your 12 tip checklist to give you the confidence and the best opportunity for success. In this webinar Stephanie Radkay, CME Floor Broker, Screen Trader and Educator, will address personal vs. market risk like you've never seen it before, her Rotating Directional Trading System (RDS) and 10 other golden nuggets that have been used successfully since 1993.



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[color=black]The Euro topped at a 5-month high on Friday, hitting a high of 1.3497, just pips before the important Fibonacci level for the medium term. Last week, we had analyzed the medium-long term, and after doing all the necessary analysis using classical technical analysis, Elliot & Fibonacci, we found that most probably the first leg up from 1.1875 to 1.3332 is wave A of a 3-wave correction up. We also found that, most probably, the drop which followed is wave B, which stopped at Fibonacci 50% level of wave A with not-so-well kind of accuracy as it bottomed at 1.2586 whereas the Fibonacci level was 1.2604. If this move has stopped closer to the Fibonacci level, we would have expected this current rise from the first step it took around 1.26. So, currently, we are in wave C, which will ideally target the equality level (were wave A = wave C) which is at 1.4043, or the Fibonacci 61.8% level for the massive drop from 1.5143 to 1.1875 which is at 1.3895, or the top of the rising channel on the daily chart, which is currently at 1.3794 and will rise with time. This leaves the area between 1.3895 & 1.4043 as the proffered target area for this wave. We do believe we are heading there on in a matter of weeks. We expect to reach the target area by December, which is a month famous for introducing medium & long term tops for EURUSD. From there we could see the Euro collapsing and dropping to areas below 1.18, but it is too early to talk about this issue now, and we will leave the next stage discussion to a more appropriate time. Back to short term analysis: support is at the Asian session low of 1.3445, and resistance is at the medium term Fibonacci level of 1.3509.If we take the resistance, then the trend goes on, and we will target 1.3589 & 1.3690. But a break of the support will give way to a downward correction targeting 1.3366 & 1.3285.

Support: