Daily Analysis – 16/05/2011

ForexPros Daily Analysis May 16, 2011

Euro, Pound in Measured Moves Short, Yen At Bottom Range

On the daily the euro is in measured moves short and coming close to breaking its longer term long, with a line in the sand at 1.40031. On the short side, the euro hit its 61.8% of its short from 1.44325. The next traditional short is at 1.41924.

On the 15 min chart you can see the next short at 1.42733, the short was broken but then hit the target at 1.40495. The daily pivot is at 1.41735 which may hold the euro down.

On the daily the pound is in measured moves short and hit its 23.6% target at 1.61581. Good to wait to see if pound bounces before measuring next short setup. The next full traditional long is at 1.60447.

On the daily, the yen remains in its short setup close to the bottom of the range it has been in since Sep 2010 and all time lows. The 50% short is at 81.17, with a target at 78.77. Previous lows are acting as support.

Forex Trading analysis written by Diana Rochford for Forexpros.

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