ForexPros Daily Analysis May 12, 2011

Euro, Pound In Measured Moves Short Into Next Long Setup

On the daily, the euro is in measured moves short and hit its 23.6% target at 1.418 and rebounded. The next traditional short setup is at 1.4297, with a line in the sand at 1.43254. The short has moved into the longer term euro long at 1.4180. The line in the sand is at 1.40045.

On the daily the pound today hit its traditional 50% short at 1.65066 and retraced. The target of the new short is at 1.61581. The 50% at 1.63399 of the longer term long is acting as support and the line in the sand is at 1.6244.

On the daily, the yen bounced from a previous low, even after breaking its long setup. This may signal that the yen may continue in the range its been acting between since September 2010 near all time lows. Trading within a range can be dangerous and its best to wait until the range is broken.


Forex Trading analysis written by Diana Rochford for Forexpros.


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