Forexpros Daily.com Analysis - 02/12/2009

[forexpros]

Forexpros Daily Analysis Dec 2, 2009


Special Event Tomorrow on Forexpros.com: Strategic & Tactical FOREX Trading with Wayne McDonell

Start: Thu, Dec 3, 2009, 11:00 EST/ 16:00 GMT

Forexpros is proud to host a Webinar featuring Wayne McDonell, one of today's top experts on Forex Trading, who will be speaking on our website this Thursday (Dec 3).

In his educational presentation, Wayne will teach how to use technical analysis to align market and price forces for better trading opportunities with potentially less risk. Trade planning, with the use of moving average entries and pivot point exits, will be discussed in an easy to understand "how to" manner.

to join this exciting lecture. Attendance is FREE.

About Wayne:

Mr.McDonell is the Chief Currency Coach at FX Bootcamp, a live forex training organization that teaches traders how to develop conservative trade plans based on technical and fundamental analysis, as well as addressing the psychological aspects of being a trader; all in real-time.

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Interest Rate Decision

The EU Central Bank will announce the new monthly short term interest rate tomorrow (Dec 2nd).
The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.
A higher than expected rate is positive/bullish for the EUR, while a lower than expected rate is negative/bearish for the EUR.
Analysts expect tomorrow's interest rate to remain stable at 1.00%.

For more on see Forexpros.

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The Euro broke the resistance 1.5050 but settled for 1.5116 only, without reaching the first suggested target 1.5144. This morning it started to fall and get closer little by little to the first important trendline which is currently at 1.5058. We believe that testing this line is only a matter of time. And if the Dollar succeeds in breaking this line, it would put the Euro under pressure, because that break would mean that we are already in a correction for the whole move from 1.4827. Such a correction would take this pair to Fibonacci 50% for the short-term at 1.4972 as a first target, and may be Fibonacci 61.8% at 1.4937 as a second target & an important support. On the other hand, short-term resistance is at 1.5101, and only breaking it would improve the