Forexpros.com Daily Analysis - 18/01/2010

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ForexPros Daily Analysis January 18, 2010


Free webinar on ForexPros - Identifying Low Risk, High Reward, and High Probability Trading Opportunities For Short Term Forex Traders

Expert: Sam Seiden
When: Thursday, Jan 21, 2010, 11:00 EST

During this session, we will apply what we learned during session one to the world of active short term trading in the Forex markets. We will walk through the trade selction process, applying our rule based strategy to identify price levels where demand and supply are out of balance and where profit margins are large offering us significant risk/reward opportunities.
This webinar is the second of a three part series brought to you by Online Trading Academy and ForexPros.

to join free.

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Fundamental Analysis: Interest Rate Decision

Traders are looking forward to the publication tomorrow (January 19), of the Bank of Canada, regarding short term interest rate. 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 CAD, while a lower than expected rate is negative/bearish for the CAD. Analysts predict no change in the reading which will remain at 0.25%.

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[color=black]We will put all our focus for today on 1.4299, where there is the rising trend line from December 22nd bottom. Staying above it or breaking it will determine the direction for today. If broken, what we called a minor probability in last week