Forex Trading Resources

Forex Market Report & Analysis for the month ended 02/29

USD Index
With all the important lows since 1992 and the earlier discussed trendline now broken, there are no larger support levels left to watch. But RSI 25 touched the 30 level in February, the last time this occurred in 2004, a significant recovery started. And this is in fact a bullish divergence developing, given the over 10 points lower low in the USD index itself, compared to the low in 2004.

EUR/USD
Because the USD Index was only able to find temporary trendline support, this additional weakness against the EURO, has brought the EUR/USD pair even higher, in what looks like a large five wave impulse structure from the 2000 low, on this monthly chart. Given the monthly Stochastic overbought extreme and RSI 25 now climbing above 70, i would be surprised to see rates breaking through the strong 8/8th MML at 1.5625 (monthly closing basis) before forming a major top. Any monthly close below trendline support would most likely confirm a larger top in place.

Why Pivot Point Systems Fail

...by DC Bonta

..."What is a pivot point? Pivot points are levels at which price may turn (either from bullish to bearish or vice versa). It's a technique developed by floor traders who calculate the points each day before the market opens (from previous day's data) and then write those levels on the back of their trading card so they have a quick reference while trading in the pits throughout the day. This is the precise reason why pivot points work -- because institutional traders who drive much of the volume follow the same exact levels. Read On...

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