Analysis for EURUSD 1 – 5 Feb 2010

Previous Week (18 – 22 Jan)

O: 1.4367 H: 1.4413 L: 1.4028 C: 1.4154

Last Week (25-29 Jan)

O: 1.4142 H: 1.4194 L: 1.3861 C: 1.3863

Weekly

Daily

Hourly

Expected for the week

• We are still very much in a downtrend with oversold readings on the QQE chart.
• I wouldn’t be too enthusiastic about rallying for a huge short as we may be looking at a reversal if 1.3862 does not hold.
• We saw a huge downclose of 1193pips (O – 1.3997, C – 1.2804) in January 2009.
• January 2010 saw (O – 1.4323 C – 1.3863) 460 pips.

§ I would wait for the market to breath and see where it reacts to critical areas (refer chart) before deciding which path to take on a scalp basis or if an opportunity presents for an intraday trade to keep a tight stop loss.

• Important fundamentals are on an everyday basis so we may see a volatile market week.

Fundamentals:

Mon – NY Tue – NY Wed – NY Thu – NY Fri - NY