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Tuesday June 29, 2010 - 09:21:54 GMT
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Forexpros Daily Analysis - 29/06/2010
Analysis June 29, 2010
Fundamental Analysis: GDP
European traders anticipate the publication of the Gross Domestic
Product (GDP). It is the broadest measure of economic activity and is a
key indicator for the economy's health. The quarterly percent changes in
GDP shows the growth rate of the economy as a whole. A higher than
expected reading should be taken as positive/bullish for the GBP, while a
lower than expected reading should be taken as negative/bearish for the
GBP. Analysts predict a future reading of 0.30%.
The Euro broke the support specified in yesterdayâ€™s report 1.2358, and
dropped as expected, and reached the first suggested target 1.2260,
successfully! What is funny, is that the Euro dropped more than 150 pips
from the top it reached after this weekâ€™s open, while the Pound reached
a 7-week high above 1.51, and consolidated just below it. Therefore, it
is hard to channel the direction of the European currencies against the
greenback, and this in itself calls for caution. In the case of the
Euro, its fall to meet our suggested target at 1.2260 is a negative sign
for the short term without a doubt, If added to the fact that this drop
came after the failure to break the top of the descending channel, we
can see that this is also negative for the medium term as well. Todayâ€™s
support is at Fibonacci 38.2% for the medium term at 1.2240, which we
trade just above at the time of preparing this report. If broken, we
will fall to test the more important Fibonacci levels: 50% At 1.2170,
and 61.8% at 1.2100, which is the most important medium term support.
The resistance is at 1.2337, and only with a break above here, this pair
will improve its negative technical outlook for the short term. If
broken, we will target 1.2396 once again, and if this one is also
broken, we will be on the way to 1.2519.
â€¢ 1.2240: Fibonacci 38.2% for the whole rising move from this cycleâ€™s
low to last weekâ€™s high.
â€¢ 1.2170: Fibonacci 50% for the whole rising move from this cycleâ€™s low
to last weekâ€™s high.
â€¢ 1.2100: Fibonacci 61.8% for the whole rising move from this cycleâ€™s
low to last weekâ€™s high.
â€¢ 1.2337: Fibonacci 61.8% for the short term.
â€¢ 1.2396: the weekly high so far.
â€¢ 1.2519: May 6th low.
The Dollar/Yen continued to drop slowly, a bit faster than usual this
morning, in yet another confirmation that the bears are beating the
bulls! USDJPY broke the support specified in yesterdayâ€™s report 89.20,
and reached a new bottom for this recent falling trend at 88.59 without
being able to meet our suggested target 87.99. This confirms the
negative technical outlook we have seen lately. And we believe it will
persist as long as we are trading below the falling trend line from June
14th top, which is currently at 90.64. Short term support is at 88.67,
and breaking it will be another evidence that we are going down. This
break will target 87.99 & 87.35. The resistance has shifted to
89.45, where we see an important level for several reasons. Breaking
this level will give this pair a chance to test the important trend line
at 90.64 as a first target, and if this one is broken, things will go
against our outlook, as we will target 92.07. This pair is going as
expected, in the expected direction, and in convergence with our
negative technical outlook for the short & medium terms. We expect
the fall to go on, but we hope to see it go faster, and more exciting.
But for today in specific, we should be careful since we could see a
bounce, because we came very close to the descending trend line
illustrated on the attached chart, a bounce is highly probable, even if
it was a temp.
â€¢ 88.67: important intraday level.
â€¢ 87.99: May 6th low.
â€¢ 87.35: Dec 9th 2009 low.
â€¢ 89.45: important intraday level.
â€¢ 90.64: the descending trend line from Jun 14th top on the hourly
â€¢ 92.07: the important resistance area holding Jun 7th & 14th.
trading analysis written by Munther Marji for
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.
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Amazing Trader EVENT RISK Calendar:
Wed 18 Oct /ul>
12:30 US- Housing Starts & Permits
14:30 US- EIA Crude
Thu 19 Oct
01:30 AU- Employment
08:30 GB- Retail Sales
12:30 US- Weekly Jobless
Fri 20 Oct
12:30 CA- Retail Sales & CPI
14:00 US- Existing Homes Sales
John M. Bland, MBA
- POTENTIAL PRICE RISK: HIGH Tue-- 08:30 GMT GB- CPI top tier confirmation of Inflation.
- POTENTIAL PRICE RISK: Medium Tue-- 09:00 GMT DE- ZEW Survey second most important German monthly Survey.
- POTENTIAL PRICE RISK: Medium Tue-- 09:00 GMT EZ- final HICP revision to flash report. Revisions are usually minor.
- POTENTIAL PRICE RISK: Medium Tue-- 13:15 GMT US- Industrial Production. Top output indicator.
- POTENTIAL PRICE RISK: Medium Wed-- 12:30 GMT US- Housing Starts and Permits revision to flash report. Useful housing leading indicator.
- POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top WTI inventory measure.
- POTENTIAL PRICE RISK: Medium Thu-- 01:30 GMT AU- Employment. Top economic indicator.
- POTENTIAL PRICE RISK: Medium Thu-- 02:00 GMT CN- GDP. Top economic indicator.
- POTENTIAL PRICE RISK: HIGH Thu-- 08:30 GMT GB- Retail Sales. Top consumption indicator.
- POTENTIAL PRICE RISK: Medium Thu-- 12:30 GMT US- Weekly Jobless. Employment Indicator.
co-founding Partner, Global-View.com
EXCLUSIVE: Global-View Daily Trading Chart Points Updated
EXCLUSIVE: Global-View Free Forex Database updated
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