ForexPros Daily Analysis February 23, 2011

Euro Dollar:

On the daily, the euro is still in a long setup from the 50% long at 1.3457, with a target at 1.40494. However, the latest long and short setups have been broken. The next long setup was clipped but the euro shot back to its resistance line (best seen on the 15 min setup). Both the long and the short setup being broken shows uncertainty and the euro should be traded with care until it shows clear direction.

On the 15 min chart, you can see the euro clipped the 61.8% at 1.35362 but shot back to its resistance to 1.37148.


On the daily, the pound has bounced off its long at 1.61122, with a target at 1.63327, though it is in a shorter term short, best seen in the 15 min chart.

On the 15 min chart, you can see the pound stuck between its long and short setup. Neither have been broken and the pound must decide what direction it is going in. Trade carefully.


On the daily, the yen remains in its range. The yen reacted off the 50% short at 84.093 for the fourth time. The yen has been reacting off its support trend line it has been creating from its short at 80.234. A wedge is being formed.


Forex Trading analysis written by Diana Rochford for Forexpros.


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