Forexpros.com Daily Analysis - 10/12/2009

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Forexpros Daily Analysis Dec 10, 2009


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Thu, Dec 10, 2009, 08:00 EST/13:00 GMT

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Fundamental Analysis: US Census Bureau

The US Census Bureau will release the Core Retail Sales report tomorrow (Dec 11).
The report is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in the US, excluding auto. It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the US economy .
Analysts predict tomorrow's report to indicate a rate of 0.60%, an increase form last month's rate of 0.20%.

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[color=black]The Euro surpassed the resistance 1.4734 without being able to advance, but at the same time, it did not break or approach the support 1.4649. It seems that the fluctuation we have seen has started building a small triangle pattern, with its limits at 1.4734 & 1.4681, and breaking any of these limits is what will set the direction for the short-term. If we break support at 1.4681 we will target Fibonacci 38.2% (for the rise from 1.3747) which is now closer than ever at 1.4610, and then the support area 1.4510/1.4518 that includes several daily bottoms. Short-term resistance is at the supposed triangle pattern limit 1.4734, breaking it would mean that the Euro will have a chance to catch a breath after this big drop. Breaking this resistance will target at least 1.4847, and may be 1.4903 as well.

Support: