Euro Strength, Dollar Weakness

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Euro Strength, Dollar Weakness

Author: admin | Total views: 47 | Word Count: 627 | Category: Forex trading signals | Date: Apr 5th 2008

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Manufacturing data from Eurozone was mixed, with Germany manufacturing PMI strengthened to 59.4 while Eurozone manufacturing PMI dipped slightly to 56.5. Meanwhile, UK manufacturing PMI steadied and recovers slightly to 51.9. Release of US ISM manufacturing index was re-scheduled to Wednesday.

EUR/USD's strength continues today reaches as high as 1.3288 so far. Sustained break of 1.3244 cluster resistance (61.8% retracement of 1.3362 to 1.3051 at 1.3243) indicates corrective fall from 1.3362 has completed at 1.3051. At this point, further rally is expected to follow to 1.3364 resistance. Also, with a bullish flag pattern in weekly chart as background, whole rally from 1.2483 should have resumed for 1.3668 high. Break of 1.3364 resistance will confirm this case.

On the downside, touching of 1.3230 will turn intraday outlook consolidative first but downside should be contained by 4 hours 55 EMA (now at 1.3170) and resume rise. Though, sustained break of this EMA will turn focus back to 1.3091 and 1.3051 low again.

In the bigger picture, EUR/USD's medium term up trend from 1.1639 (06 low) is still in force and is expected to continue towards 1.3668 (04 high) and probably further to 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822. However, as it's unclear whether this rally from 1.1639 represents resumption of multi-year up trend from 0.8223 or just part of a large scale consolidation that started at 1.3668, close attention will be paid to loss of upside momentum and reversal pattern formation as EUR/USD approaches 1.3668 and then 1.3822. On the downside, break of 1.2760 support will turn medium term outlook neutral and argue that whole medium term rally from 1.1639 has possibly completed.

The Forex Trend Trader Will Show You

How to Identify A Trend …….You will learn to recognize when the market is in a tending mode and when it is in a trading range. You want to take advantage of the trend when it moves to trend mode.

Low Risk Entry ……. The trend is like a lottery, you want as many chances at it as you can get. Trading is not perfect. Lowering your risk gives you more opportunities if the first one fails. Once on board a good trend it will return many times your risk amount.

Trade Up or Down Markets …… It doesn’t matter which way the market is trending you just catch the trend and go with it. Unlike stocks in the Forex markets you can reverse the order. Sell first then buy later to close out your position. So you make money no matter which way the market trends.

How to Spot Trend Changes …… Your most profitable opportunities come from recognizing a trend change early. You will learn the 3 Simple Steps to spotting a trend change.

How to Spot Setups during a Trend ……. With 24-hour markets you wont catch every trend change. That would take monitoring the market 24 hours. But that doesn’t mean you have to miss the trend. Currency trends can go on for days, weeks, months and even years. There are many opportunities to get on a trend once it has started.

Trade when you want ……. The forex markets are open 24 hrs a day. You can trade when it is convenient to you. If you live in the EST zone the market opens early Sunday evening and goes nonstop till late Friday afternoon. You set your own hours and trade from the comfort of your own home.

Costs you nothing to start …… Most Forex firms on the Internet allow you to open a demo account. This gives you free real-time charting and a trading platform where you can paper trade your own account. An account with "virtual" money so you can keep track how you are doing.

Article Source: Easy Forex Strategy

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Manufacturing data from Eurozone was mixed, with Germany manufacturing PMI strengthened to 59.4 while Eurozone manufacturing PMI dipped slightly to 56.5. Meanwhile, UK manufacturing PMI steadied and recovers slightly to 51.9. Release of US ISM manufacturing index was re-scheduled to Wednesday. 
EUR/USD's strength continues today reaches as high as 1.3288 so far. Sustained break of 1.3244 cluster resistance (61.8% retracement of 1.3362 to 1.3051 at 1.3243) indicates corrective fall from 1.3362 has completed at 1.3051. At this point, further rally is expected to follow to 1.3364 resistance. Also, with a bullish flag pattern in weekly chart as background, whole rally from 1.2483 should have resumed for 1.3668 high. Break of 1.3364 resistance will confirm this case. 
On the downside, touching of 1.3230 will turn intraday outlook consolidative first but downside should be contained by 4 hours 55 EMA (now at 1.3170) and resume rise. Though, sustained break of this EMA will turn focus back to 1.3091 and 1.3051 low again. 
In the bigger picture, EUR/USD's medium term up trend from 1.1639 (06 low) is still in force and is expected to continue towards 1.3668 (04 high) and probably further to 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822. However, as it's unclear whether this rally from 1.1639 represents resumption of multi-year up trend from 0.8223 or just part of a large scale consolidation that started at 1.3668, close attention will be paid to loss of upside momentum and reversal pattern formation as EUR/USD approaches 1.3668 and then 1.3822. On the downside, break of 1.2760 support will turn medium term outlook neutral and argue that whole medium term rally from 1.1639 has possibly completed. 
The Forex Trend Trader Will Show You 
 How to Identify A Trend …….You will learn to recognize when the market is in a tending mode and when it is in a trading range. You want to take advantage of the trend when it moves to trend mode. 
 Low Risk Entry ……. The trend is like a lottery, you want as many chances at it as you can get. Trading is not perfect. Lowering your risk gives you more opportunities if the first one fails. Once on board a good trend it will return many times your risk amount. 
Trade Up or Down Markets …… It doesn’t matter which way the market is trending you just catch the trend and go with it. Unlike stocks in the Forex markets you can reverse the order. Sell first then buy later to close out your position. So you make money no matter which way the market trends. 
How to Spot Trend Changes …… Your most profitable opportunities come from recognizing a trend change early. You will learn the 3 Simple Steps to spotting a trend change. 
How to Spot Setups during a Trend ……. With 24-hour markets you wont catch every trend change. That would take monitoring the market 24 hours. But that doesn’t mean you have to miss the trend. Currency trends can go on for days, weeks, months and even years. There are many opportunities to get on a trend once it has started. 
Trade when you want ……. The forex markets are open 24 hrs a day. You can trade when it is convenient to you. If you live in the EST zone the market opens early Sunday evening and goes nonstop till late Friday afternoon. You set your own hours and trade from the comfort of your own home. 
Costs you nothing to start …… Most Forex firms on the Internet allow you to open a demo account. This gives you free real-time charting and a trading platform where you can paper trade your own account. An account with "virtual" money so you can keep track how you are doing. Article Source: <a href="http://www.easyforexstrategy.com" target="_blank">Easy Forex Strategy</a> About the Author: <a href="http://www.actionforex.com">ActionForex</a>