Forexpros.com Daily Analysis - 30/12/2009

[forexpros]

Forexpros Daily Analysis Dec 30, 2009


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

Expert: Sam Seiden
When: Thu, Jan 7, 2010, 12:00 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 selection 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.

---

Fundamental Analysis: Chicago PMI

The Chicago PMI will be published tomorrow (Dec 31).
The Chicago Purchasing Managers Index determines the economic health of the manufacturing sector in Chicago region.
Any reading above 50 indicates expansion of the manufacturing sector, while a reading below 50 indicates contraction.
The Chicago PMI can be of some help in forecasting the US ISM and usually has an impressive correlation with it.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Analysts predict a reading of 56.10, up from the previous 55.20.

---



[color=black]Although it surpassed 1.4410, the Euro was unable to maintain its gains, and gave them up, returning to 1.43, where there is a critical support at 1.4308. The price reached 1.4304 before bouncing more than 50 pips until this moment. The importance of 1.4308 is that it is Fibonacci 61.8% for the whole rise from 1.4216 to yesterday