Free webinar today - Mapping out the Banking System & Foreign Exchange Dealing Process, Part I
Expert: Dan Cook
When: Tue, Nov 10, 2009, 11:00 EST
As the first Webinar of a two part series, Dan Cook, Senior Market Analyst at IG Markets will shed light on the inner workings of the international banking system and its impact on currency trading.
The webinar will provide a breakdown of the Central Banks and the Interbank System, highlighting the roles of each of the major players and how their policy decisions impact currency markets. Additionally, Cook will review major market indicators and identify which data releases most critically impact currency markets, enabling traders to get a better sense of which economic announcements warrant the most attention.
Traders await the release of the Bank of England's (BOE) Quarterly Inflation Report tomorrow (NOV 10th).
The report sets out a detailed economic analysis and inflation projection on which the Bank's Monetary Policy Committee bases its interest rate decisions. The Monetary Policy Committee is also expected to present an assessment of the prospects for UK inflation over the next two years.
Euro Dollar - Rising Trendline
The Euro broke the resistance specified in yesterday's report 1.4942 and reached the first target suggest for his break 1.5014 with good accuracy (yesterday's high was 1.501. Yesterday's target will be today's resistance, and if broken we expect this rise to go on, reaching new highs that we have not seen this year, first of which is 1.5082, then 1.5144. The most important support for the next few hours will be the rising trendline from November 3rd bottoms, which is at 1.4925 currently. In case it is broken, the Euro will face a correction on the short-term horizon that will target Fibonacci 38.2% for the short-term at 1.4821, at least, and could reach 61.8% at 1.4746. In this case, the latter will be the most important support for the short-term because staying above means this drop is only a correction, while breaking it means it is more than a correction.
• 1.4925: The bottom of the rising channel from Nov 3rd lows.
• 1.4821: Fibonacci 38.2% for the last rising move.
• 1.4746: Fibonacci 61.8% for the last rising move.
• 1.5014: previous resistance from 2008.
• 1.5082: previous resistan4ce from 2008.
• 1.5144: previous support from 2008.
USD/JPY - Falling Trendline
As we said yesterday, the two-time stop at the descending trendline on Friday, and at Fibonacci 50% resistance at the beginning of the week, the borders of the downtrend is getting clearer and clearer. The falling trendline is now at short-term Fibonacci 61.8% resistance is at 90.37, meeting them in the same area is the moving average SMA100, making this area the most important for the short-term. Staying below it means that bears are in control. More confidence for the downtrend will be gained once we break 89.79, the support provided by the rising trendline from this weeks low. Such a break will target 89.40 then the important bottom 88.82. If a surprise happens, and we break 90.37, we will target 90.90 first, then 91.30.
• 89.79: the rising trendline from this weeks low.
• 89.40: previous support.
• 88.82: Oct 14th low, and an important low for determining the medium-term trend.
• 90.37: a resistance area that includes Fibonacci 61.8% for the short-term, a falling trendline, and the moving average SMA100.
• 90.90: a well known previous support/resistance.
• 91.30: Nov 4th high.
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