What ProAct Traders sees in the Forex starting the week of August 29, 2010

REMEMBER: THIS IS BIG PICTURE ONLY - NOT INTRADAY! Please NOTE!!!! This is an opinion only!  CLICK ON IMAGES TO ENLARGE

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$EURUSD

WHAT ProAct Traders SEE:  We see a bear flag that is forming on the cross which continues to be bearish.  We have bounced on the .500 fibo from the day chart with the 1.2621 as the next target down.  Further targets are at 1.2604, 1,2532 and 1.2432.  The upside risk is to the 1.2900 area

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$USDJPY                                        

WHAT ProAct Traders SEE:   The next low is from the Month Chart at 79.73.  However, if the bottom is in then look for a move back to the .500 @ 86.40 and the R5 and resistance at 87.38.

 

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$EURJPY

WHAT ProAct Traders SEE:  I wrote last week – “Further downside target is 106.66”.

Took that out before the pullback.  Looks very much like a bear flag to me so would look for it to tag the .382 and then head south.

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$AUDUSD – A great smooth currency for Newbie’s!

WHAT ProAct Traders SEE:  I wrote last week “…at .8780 ( confluence of a trendline, .382 fibo and strong support) .  We should see a bounce here”  Did that as you can see.  Breaking the Down trend line is significant and the fact that we powered to the .500 makes us think that a  bottom is in place.  Pretty early to tell though.  Will look for a pullback to the .382 and then see if it will continue upward.  Break of the 0.9005 should produce a run to the 0.9149 area.  If this ends up being only a strong pullback then target the double bottom.

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EXTREME CAUTION IS URGED - TRADE WITH STOPS!!!!!

BTW - if you want to save the pics, right click and hit “save as”.  


IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by ProAct Traders, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors. We monitor multiple indicators as well as established chart analysis.

There is No “Holy Grail” in trading systems. Do not use our research or any other trading system without proper research on the asset.

This is an opinion ONLY - and not a trade call, but a study that may lead you to a trade. I do not know whether this will transpire or not so use your own judgment.

 

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