Forexpros.com Daily Analysis - 02/11/2010

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ForexPros Daily Analysis November 02, 2010


Pound Trying to Break Range, Yen Near All Time Low

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Euro Dollar

The euro is in a range, in a wedge. The range is narrowing into a wedge.Euro is holding extension long setup at 1.3748, with target at 1.4355.Larger multi year short at 1.3396, is acting as resistance. Near a clear break of 1.416 or 1.369 for direction.
On a 15 min chart, euro holding a dirty long (setup broke in its previous measured move long). Target is 1.4075.

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GBP/USD

Looks stronger than the euro, and is knocking at the top of its range. Pound is in long setup at 1.5704, with target at 1.6297, which coincides with target of longer term long from 1.539. The multiyear short, 61.8% line at 1.5967 has acted as strong resistance.
On 15 min chart, the pound has been in measured moves longs and is currently holding and front running the long at 1.5983, with target at 1.614.

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USD/JPY

Yen hit new yearly low at 80.23 and close to breaking all time lows at 79.7. This is a major area of support and we must remain alert for possible Bank of Japan intervention. Trade carefully.On the 15 min chart. In measured moves short, off 50% at 80.75, target at 80.116. Larger 50% at 81.108, with target at 79.823.

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Forex trading analysis written by Diana Rochford for Forexpros.

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