Monday January 25, 2010 - 15:38:41 GMT
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Daily Technical Update EUR/USD Stalking Correction Rally; Risk Assessment
Daily Technical Update
January 25, 2010 (EUR/USD) Stalking Correction Rally; Risk Assessment
- 4H: The EUR/USD is possibly in a correction rally.
It surely can be anticipated as one because the general mode in the
intermediate term is bearish. (Refer to Weekly Technical Update 1.22.2010).
- The 4H time-frame shows stochastic turning from overbought levels
and the parabolic SAR (0.02, 0.2) is about to give a bearish signal.
Price action is topping, but there still can be another swing towards
1.4250. Currently however, the momentum is slowing suggesting the
market may be ready to continue declining.
- 1H: Although it may be premature, it doesn’t hurt to assess the bearish case in particular the reward risk ratio.
- Using the 1.4220 powerline, we find 3 ATR above is about the 1.4300
level. The swing projection seen in 4H chart, is 1.38. The reward-risk
ratio if the trigger closes at 1.4110 then would be approximately 1.6:1
(320 to 200 pips).
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clients’ transactions and as a result,
CMS’ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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