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Forexpros.com Daily Analysis - 10/08/2011

Euro In Wedge, Pound Broke Range, Yen Near Lows

Euro:

On the daily, the euro broke its short setups. The euro has now broken its short and it long setups on the daily. The euro is in a wedge. It has butted up against the short from the high in May to the lows in July. On the 15 min chart, the euro is in longs, but they are messy. The fed announcement led to increased volatility and the short term chart setups are dirty. Best to let the trend clear itself up.

Pound:

On the daily, the pound broke its range and its long setup at 1.61831. However the pound snapped back into the range. To confirm the trend break, the pound will have to decidedly break its 61.8% line (1.6183). In the past 3 weeks, the pound has been in a range between 1.6475 and its 50% long at 1.624.

Yen:

On the daily, the yen is closer to all time lows at 76.294. Resistance should be expected at this point. Take precautionary steps against possible intervention if the yen breaks lows.

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