Daily Analysis – 04/08/2011

ForexPros Daily Analysis August 04, 2011

Euro Battles For Trend, Pound Ranging, Yen Intervention?

On the daily, the euro is between a long setup from 1.4187 with a target at 1.47 (line in the sand is 1.4385) and a short at 1.4338, with a target at 1.4047 (line in the sand at 1.4104). The battle for the trend.

On the daily, the pound continues ranging between 1.6475 and its daily long at 1.6239, with the target at 1.6588. The line in the sand is at 1.6183. If theĀ  pound breaks the 61.8% it could signal a change in direction.

The dangers of trading a currency that is hitting lows and whose government has a history of intervention. If it walks, talks and looks like intervention…
On the daily, the yen hit an all time low Monday. A huge green candle may mean the Bank of Japan has intervened to stem further losses.

Forex Trading analysis written by Diana Rochford for Forexpros.

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