Thread: Forexpros.com Daily Analysis - 08/07/2009

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EUR/USD Recent Lows Hold

The pair once again tested the support area in early trading today after choppy trading yesterday.

The lows have been tested and appear to have succeeded in holding, which means the bias is upwards for today.

The support range is between 1.3880-1.3870. A drop below will likely test 1.3830 and 1.3800. A break below 1.3800 will likely test mid-June lows at 1.3750.

Resistance is at 1.3950, 1.3980-1.3990, and yesterdays high at 1.4050.

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USD/JPY Heading Towards Support

In yesterdays post I wrote that the pair had to push above 95.40 resistance in order to set up for a bullish move. It did not, and that has resulted in over a 100 pip dive so far.

Major support is a little ways away still at 93.80, which was a late May low. Support beyond that is at 93.50 and is expected to hold through the session if the pair continues to fall.

A bounce is likely off these support levels.

Resistance currently is at 94.50, 94.70 and 95.00. A move beyond 95.40 is unexpected today but would be favorable for a rise over the next few days.

Analysis by: http://www.forexpros.com - Written by Cory Mitchell

Disclaimers:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

In forex, because of the shorter periods of exposure to the market’s whims, scalping or day trading may sound like the surest ways to success for the beginner. I am trading with Bprimes and basically I do day trading. But, because the market’s behavior is more or less random in the short term, the habitual day trader or scalper may in fact be exposing himself to much greater risk by minimizing foresight and predictive capability.