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EUR/USD Spotlight: Indicator of the Day.

"INDICATOR OF THE DAY" - 78.6% FIB RETRACMENT Many traders are familiar with some of the key fibonacci retracements such as the 38.2%, 50% and 61.8% fib retracements. However, today, we will look at our favorite retracement level in the form of the 78.6% fibonacci retracement. The 78.6% fib retracement is arguably the last relevant retracement level and last chance for a given move to stall out and resume the underlying course of the trend before considering a full 100% retracement. As such, establishing reversal positions off of the 78.6% fib will often present highly compelling risk/reward trade set-ups. Eur/Usd: In the above example, we can see that the market has stalled out by the 78.6% retrace off of the 1.4720-1.2455 move which comes in at 1.4235, and could be looking to roll back over for a resumption of the broader downtrend. If this is the case, selling by the 78.6% fib retrace, could very well set-up a compelling short opportunity. Written by Joel Kruger, Technical Currency Strategist for DailyFX.com If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the "distribution" list. Joel Kruger publishes 6 daily pieces: "Tech Talk" - A Daily Video Highlighting Technical Developments in the Overnight Session of Trade. Monday-Friday (between 5:30am-6:30am EST) "Morning Slices" - Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes "Trade of the Day"). Monday-Friday (between 6:30am-7:30am EST) "Indicator of the Day" - A Feature Report that Highlights our Most Significant Technical Indicator of the Day. Monday-Friday (between 8:00am-9:00am EST) "Cross Country" - A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates. Monday-Friday (between 10:30am-11:30am EST) "Scandi Daily" - A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact Nordic@fxcm.com if you would like to be added to distribution.) Monday-Friday (between 11:30am-12:30pm EST) "Daily Classical" - A Daily Technical Overview of the Major Currencies. Monday-Friday (published between 2:00pm-3:00pm EST)

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Title Annotation:United States dollar
Publication:Mena Report
Article Type:Statistical data
Geographic Code:4E
Date:Jun 1, 2009
Words:369
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