07-07-2011, 09:52 AM
|
| Senior Member | | Join Date: Sep 2010
Posts: 128
Tournaments Joined: 0
Tournament Wins: 0 | |
 Forexpros.com Daily Analysis - 07/07/2011
ForexPros Daily Analysis July 07, 2011
Free webinar on ForexPros - Forex Psychology by Analyst Navin Prithyani
Expert: Navin Prithyani
Start: Mon, Jul 11, 2011, 09:00 EST
End: Mon, Jul 11, 2011, 10:00 EST
"Each of us traders have a unique strategy we use to engage the forex market with. We end up failing due to many factors caused by our very own mind. It is these very factors that are making a profitable trading strategy fail in progress. Changing the way one thinks is close to impossible but with certain tactics - tricking the mind to think what you need it to think can be achieved overnight." Learn the tips and tricks on Forex Psychology by Analyst Navin Prithyani. Click here to join free
---
Dollar Index Pares Losses As Liquidity Returns
The dollar index had a bullish up day yesterday following 6 consecutive bearish candles. This bullish candle formed as liquidity returned to the market following the US holiday on the 4th July. A small correction is looking overdue and risk sentiment will potentially determine whether this move has legs or not. Moody’s downgrade of Portugal’s credit rating is the latest news relating to the Euro debt crisis.
The Euro is the primary driver for this “basket” of currencies and a failure of price to hold above the key 1.4500 psychological level and descending trend line resistance will encourage EUR/USD bears. However, the bullish engulfing bar printed week ending 3/7/11 is not invalidated until the candle low has been penetrated; further demand could be seen as price moves near the swing low of this candle.
The dollar index could possibly range between the 72.69 and 76.36 levels but the longer term trend points towards a breakout of this range to the downside being the most probable scenario - if we are to believe that the trend is our friend.
Initial event risk comes as the ISM Non-Manufacturing PMI is released today with further potential for volatility coming on Friday with the US Non-Farm Employment report.
--- Forex Trading analysis written by Nick Simpson for Forexpros.
---
Visit Forexpros new Forex Brokers Directory !
---
Disclaimer:
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.  |
Linear Mode
