Forex Daily Analysis Nov 24, 2009 By Forexpros

Forexpros Daily Analysis Nov 24, 2009

Fundamental Insight

The US Census Bureau will release the Monthly New Home Sales Report tomorrow(Nov 25th).

The report helps analyze the strength of the US housing market, and theeconomy as a whole, by measuring the annualized number of new residentialbuildings that were sold during the previous month.

The new home sales report is quite volatile and subject to huge revisions.

A higher than expected reading should be taken as positive/bullish for theUSD, while a lower than expected reading should be taken as negative/bearishfor the USD.

Analysts expect last month’s measure of 402.00K to rise to 408.00K.

Euro Dollar

Although it broke the resistance at 1.4952, The Euro was unable to surpass1.50. The sharp drop that followed made 1.4875 the most important supportfor the short-term. This support, could reverse this drop, and initiate arising move. But if it is broken, the drop coming from 1.4997 will continue,targeting 1.4820 first, and then the most important support for the timebeing at 1.4786. On the other hand, short-term resistance is 1.4951, and ifit is overtaken, then the technical outlook will have the strength to reach1.5018 first, and if this is broke we have the right to expect 1.5082 forthe first time this year.

Support:

. 1.4875: Fibonacci 61.8% for the short-term.

. 1.4820: November 13th low.

. 1.4786: Fibonacci 61.8% for the rising move from 1.4625, the mostimportant support for the medium-term.

Resistance:

. 1.4951: short-term resistance.

. 1.5018: Nov 9th & 10th high.

. 1.5082: previous resistance from 2008.

USD/JPY

Dollar-Yen moved in a tight range again, but it dropped to 88.54 thismorning which is the same level that stopped yesterday’s drop! The downmovement has slowed down, drawing our attention to what could be a wedgepattern, which is a pattern that could limit the current drop to the bottomof this pattern, or a support that is close to it, and could push pricehigher on the short-term. If this scenario turns out to be right, we willrise and break short-term resistance 88.97 where there is the moving averageSMA100, and we will witness a rising move targeting the falling trendlinefrom October 26th top, and the upper limit of the above mentioned pattern at89.71 first, and if broken we could see a jump to 90.73. On the other hand,if the short-term support at 88.72 is broken, we will target 88.13 which isthe last significant support before

the last 15 years low 87.10

Support:

. 88.56: short-term support.

. 88.13: Oct 13th low.

. 87.10: Jan 12th low.

Resistance:

. 88.97: the moving average SMA100.

. 89.71: the top of the supposed wedge formation.

. 90.73: intraday top.

Forex Trading Analysis by www.forexpros.com.

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