Best Financial Markets Analysis Article The expected recovery in the US Dollar is now nicely underway. With a second upleg in process our focus is on the next target/resistance area, where the uptrend is likely to pause.

The FX Trader’s view

MONTHLY CHART:

The main sign in 2008 that long term bears were losing momentum was the breach of the bear channel top projection.

Subsequent resistance from around the 38.2% recovery level prompted a pullback.

Note that the 76.4% pullback area provided quite nice support.

DAILY CHART:

After the first upleg in Dec and temporary pullback, a second upleg has got underway, aided by a better break of the 23.6% level.

Next upside focus begins at 80.00 , the 38.2% recovery level, but also note the s/term bull channel top projection currently coinciding with an equality target at 80.90 (‘74.170-78.449’ upleg extended off 76.601 low). We would be on the lookout for resistance up here.

At present first support comes from the channel base around 78.00, ahead of the 76.601 13-Jan low. Ideally this latter will hold else the expected continued recovery would be delayed.

Mark Sturdy
John Lewis

Seven Days Ahead
Be sure to sign up for and receive these articles automatically at Market Updates

Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

© 2010 Copyright Seven Days Ahead - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Seven Days Ahead Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.