Forex News Blog
Back to The Headlines
Thursday May 27, 2010 - 08:38:10 GMT
Share This Story
Forexpros - www.forexpros.com
Forexpros Daily Analysis - 27/05/2010ForexPros Daily Analysis May 27,
Fundamental Analysis: Chicago
Traders of the US anticipate the publication of the Chicago PMI. 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
future reading of 60.00.
Euro broke the support specified in yesterdayâ€™s report 1.2256, and fell
afterwards by 104 pips, only to stop before our suggested target & the
4-year low 1.2142. And after finding a bottom at 1.2152, the price bounced
almost 150 pips in 8 only hours! This strong bounce, did not break any important
levels (so far), to the degree that we can say that the negative technical
outlook has changed. When analyzing the 4-hour chart, we can see a beautiful
channel, with the price trading in the middle of it at the moment. We can also
see that the whole rising move from 1.2152 was in the middle of this channel,
and it did not touch or even approach the top or the bottom of the channel.
Today, we will favor Fibonacci 61.8% over the top of this channel. Our most
important resistance is Fibonacci 61.8% at 1.2472 and not the channel top! We do
not see any reason to change our negative technical outlook for as long as the
price is below it. As for the short term the support is at 1.2252, and breaking
it will drop the Euro to the same target set for yesterday: 1.2142 first, then
1.2000. The resistance is at 1.2350, and breaking it indicates a continuation of
the rising correction with its ideal targets between 1.2411 & 1.2472. It
goes without saying that the latter is the single most important resistance for
the time being, and the separating point between a continuation of the current
downtrend, and a reversal to an uptrend! We still believe that the drop to a new
cycle low below 1.2142 is only a matter of time, nothing will change that except
for breaking 1.2472.
â€¢ 1.2252: the rising trend line
from todayâ€™s low on intraday charts.
â€¢ 1.2142: This cycleâ€™s low, and the low
of the last 4 years!
â€¢ 1.2000: psychological
â€¢ 1.2350: Fibonacci 38.2% for the drop from
â€¢ 1.2411: Fibonacci 50% for the drop from 1.2670, which is very close
to the 4-hour channel top.
â€¢ 1.2472: Fibonacci 61.8% for the drop from
Although the price
approached our resistance 90.74, and stopped only 9 pips below it, we have seen
nothing but more semi-horizontal movement, making us gradually lose hope to feel
some excitement coming from this boring pair! But, there is a slowly rising
channel on the hourly chart, which contained all the previous daysâ€™ shallow
moves. The channelâ€™s top is just above short term 38.2% Fibonacci level at
90.74, making this resistance the most important for now. The bottom of this
channel is at the well known support 89.56. Todayâ€™s main levels are support
90.09 & resistance 90.74, we can only hope to see some action upon a break
of one of them. If we break the support 90.09, we expect to test the bottom of
the channel 89.56 first, then to drop to 88.96 on the way to lower targets for
the break of this channel. If we break the resistance 90.74, the correction of
the drop from 93.62 will go on, with its ideal targets at 91.29 & 91.84. We
believe that 91.84 is still the most important medium term resistance for now,
while the medium term support is at 89.56.
the rising trend line from Tuesdayâ€™s low on hourly chart.
â€¢ 89.56: the bottom
of the slowly rising channel on hourly chart.
â€¢ 88.96: Thursdayâ€™s low, and a
previous very important support.
â€¢ 90.74: Fibonacci
38.2% for the short term.
â€¢ 91.29: Fibonacci 50% for the short term.
91.84: Fibonacci 61.8% for the short term.
Analysis written by Munther Marji for Forex Pros.
Disclaimer: 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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Register To Test Your Amazing Trader
- Actionable trading levels delivered to YOUR charts in real-time.
- Live trading strategy sessions.
- Market Updates with Trading Tools.
Trading Ideas for 18 December 2017
Register for the Amazing Trader
Amazing Trader EVENT RISK Calendar:
Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays
Potential Trading Opportunities
John M. Bland, MBA
- POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
- POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
- POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
- POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
- POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude
co-founding Partner, Global-View.com
EXCLUSIVE: Global-View Daily Trading Chart Points Updated
EXCLUSIVE: Global-View Free Forex Database updated
TRADER ADVOCACY ARTICLES
Trader's Advocate Articles..