Forexpros.com Daily Analysis - 27/05/08

[ForexAnalysis]

Daily Forex Analysis

 

Pattern

 

Main Trend: Up

Main Trend Top: None

Main Trend Bottom: 1.5283 (05-08-08)

 

Current Pattern: Reversal Top 1.5814 (05-22-08)

 

Price

 

1.6019 Main Top (04-22-08)

1.5894 Gann Angle Down

1.5814 Closing Price Reversal Top (05-22-08)

1.5769* Gann Angle Down

 

1.5771 New York Close

 

1.5803* Gann Angle Up

1.5549 50% Retracement

1.5543 Gann Angle Up

1.5486 .618 Retracement

 

Time

 

05-23 180 Day Cycle

06-03 180 Day Cycle

06-05 Anniversary Date Top (06-05-07)

 

Analysis

 

The Main Trend is up. The closing price reversal top at 1.5814 on 04-22 has not been negated nor confirmed. A trade through 1.5814 negates the reversal top. A trade through 1.5612 confirms the reversal top.

 

If the reversal top is confirmed then look for the start of a retracement to 1.5549 to 1.5486.

 

A down trending Gann angle at 1.5769 is providing resistance. Regaining this angle would put the market in a strong position to rally. The next upside target would be a down trending angle at 1.5894.

 

Up trending Gann angle support comes in at 1.5803. A failure to hold this price indicates weakness and a possible break back to up trending support at 1.5543.

 

The read today is how the forex market trades at 1.5803 and 1.5769. These two angles are controlling the short-term direction of the market.

 

Go the way of the move on a breakout of either angle.

 

Written by James Hyerczyk

 

Disclaimer:

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