Fundamentals:  We have a few announcements today which will affect the market.

Coming from US we have the “Jobless claim”. The previous announcement was 545.0k and the forecast for today is 550.0k. (12:30  GMT).

one more announcement coming in from US “Home sales” which will be released at  14:00 GMT. The previous announcement was 5.24m and the forecast for today is 5.35m.

There are 2 types of analysis that are commonly used in the Forex market:

1. Fundamental analysis

2. Technical analysis

There is a constant debate as to which of these is more accurate. I’ve found that  the best analysis’s  are the ones that incorporate a little bit of both

One of the most important tools for analyzing the Forex market are the Support and Resistant lines.

Here’s how the support and resistance points are recognized:

When the market moves up and then pulls back, the highest point it  reaches before it pulling back is a  considered the resistance point.

Once the currency changes directions, the lowest point it reaches becomes the support line.

Once the Support and Resistance lines are established we can use them to position ourselves on the charts following the market trends while safeguarding our positions as well.

My next review will illustrate how to use this tool to perform Technical Analysis on the charts.

USD/JPY

Over the last few days The pair is having a little difficulties getting under the support  90.30 and staying there. Looks like this pair moving to few new support lines .the market have several bars before that happens, USD/JPY moves without a clear trend on a hour chart, when we are looking over a daily chart we can see a clear downtrend, to make it easy we can find in the last 30 days more sellers of the us dollar and more buyers of the japans yen, over the daily chart it will look as 18 reds bars and 12 blue bars

Keep your eyes open, don’t forget to put the S&R lines

Fundamentals:  We have a few announcements today which will likely affect the market.

Coming from Switzerland we have the “Producer and Import Prices, Producer Input Prices”. The previous announcement was 0.0% and the Forecast is 0.1%. (07:15 GMT).

One more announcement coming in from Europe. Industrial Production which will be released at 09:00 GMT, previously resulted at -0.6% and the forecast for today is -0.3%. Later on we will have the FOMC Member Lacker Speak at 16:30 and At 19:50 we will have the FOMC Member Yellen Speak (US)

one of the most obvious indicators of the dollar condition is certainly the INX  chart ,as shown on the chart below we had  a clear trend  with the USD, shown from a technical & fundamental  point of view .the current trend  clearly reflects the situation of the USD against most of the world’s currency, especially when we face such a recession in a global scale. We deal with the biggest question on daily basis which is, what is the next strongest currency ?

It appears like most of the world wants to look for a new primary currency.  We should not be too radical when we enter any transaction this week. Let’s go over what happened the last few days.

EUR/USD

What an amazing weekend, we had a few fascinating moves that only adds more money to our packets.  Checkout the latest move from this pair.  We can see that once we join the trends here we can make a good amount of money with this pair. We will need to see what’s going to happen this week, and with that data we can start working step by step.  We will start by looking over the EUR/USD, lets break it down and we will see how much money we can make dealing this pair.  we can finally see the EUR break the Resistance line, now we will need to start analyzing what will happen next.  The 1.4717 high from December 2008 is next if the EUR continues with this uptrend.

Resistances 1.4560 – 1.4630

Supports 1.4520 – 1.4460