Forex News Blog
Back to The Headlines
Tuesday December 15, 2009 - 09:49:05 GMT
Share This Story
Forexpros - www.forexpros.com
Forexpros Daily Analysis - 15/12/2009Forexpros Daily Analysis Dec 15, 2009
Fundamental Analysis: Interest Rate Decision
The Federal Open Market Committee (FOMC) decision on short term interest rate is due out tommorow (Dec 16) in the US.
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 USD, while a lower than expected rate is negative/bearish for the USD.
Analysts forecast that the interest rate will remain at 0.25%.
The Euro surpassed the support 1.4656, and settled for 1.4616, but it
did nopt test or even come close to the most important resistance
1.4701. The rising trend line from Tuesdayâ€™s low (and the lower limit
for the supposed triangle pattern) is currently very close to Fibonacci
61.8% for the short-term at 1.4701. This makes this double resistance
the most important, and only breaking it would improve the technical
outlook for the Euro. If broken, we will enter a correction for the
whole drop from 1.5139, which will target 1.4796 at least, and probably
1.4862. As for the support it is at 1.4621 and breaking it would mean
that the rising correction from Fridayâ€™s low is probably over, and that
would target 1.4566 and then 1.4510.
â€¢ 1.4621: intraday support from last week.
â€¢ 1.4597: a previous well known support/resistance area.
â€¢ 1.4510: previous support area that includes several daily lows.
â€¢ 1.4701: Fibonacci 61.8% for the short-term, and the lower trendline
in the supposed triangle formation that was broken on Friday.
â€¢ 1.4796: Fibonacci 38.2% for the drop from 1.5139.
â€¢ 1.4862: Fibonacci 50% for the drop from 1.5139.
Dollar-Yen slightly pierced through both the support & resistance
specified in yesterdayâ€™s reports, with a few points in both cases,
without being able to generate a real break. Currently we see USDJPY
between two lines: the falling trend line from 90.75 (which is
currently at 89.2,
and the rising trend line from 84.81 (which is currently at 88.59). And
since we have two descending tops at 90.75 & 89.79, and two
ascending bottoms at 84.81 & 87.35 (which means lack of direction),
it is recommended that we do not adopt any direction prior to a break,
and it is wise to wait for one of them to break. If we break the
support 88.59 , the drop coming from 89.79 will resume & the next
set of targets would be Fibonacci support levels 87.78 & 87.08. As
for the resistance 89.28, a new visit to areas above 90 would be
expected, where the targets 90.08 & 90.90 will await.
â€¢ 88.59: the rising trend line from 84.81.
â€¢ 87.78: Fibonacci 50% for the whole move from 84.81 to 90.75.
â€¢ 87.08: Fibonacci 61.8% for the whole move from 84.81 to 90.75.
â€¢ 89.28: the falling trend line from 90.75 on the hourly chart.
â€¢ 90.08: hourly resistance.
â€¢ 90.90: previous well known support/resistance area.
Forex trading analysis by Munther Marji for Forexpros. See our new commodities section on Forexpros.
Trading Futures and Options on Futures and Cash
Forex transactions involves substantial risk of loss and may not be
suitable for all investors. You should carefully consider whether
trading is suitable for you in light of your circumstances, knowledge,
and financial resources. You may lose all or more of your initial
investment. Opinions, market data, and recommendations are subject to
change at any time.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Register To Test Your Amazing Trader
GVI Trading. Potential Price Risk Scale
Mon 19 Mar 2018
AA: Major, A: High, B: Medium
Tue 20 Mar 2018
AA 9:30 GB- CPI
A 10:00 DE- ZEW Survey
Wed 21 Mar 2018
AA 03:00 AU- Employment
AA 9:30 GB- Employment
A 12:30 US- Current Account
AA 14:00 US- Existing Homes Sales
A 14:30 US- EIA Crude
A A 18:00 US- Fed Rate Decision
A 21:00 NZ- RBNZ Rate Decision
Thu 22 Mar 2018
AA All Day flash PMIs
AA 9:30 GB- Retail Sales
AA 12:00 GB- Bank Of England Decision
A 13:30 US- Weekly Jobless
Fri 23 Mar 2018
AA 12:30 CA- CPI/Retail Sales
A 12:30 US- Durable Goods
A 14:00 US- New Homes Sales
John M. Bland, MBA
co-founding Partner, Global-View.com
Start trading with forex broker Markets Cube
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
Request a TRIAL of Max's Forex Service.