Tuesday, June 09, 2009

Daily Forex Forecast Outlook

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The June Dollar was slightly lower overnight as it consolidates some of Monday's rally but remains above the 20-day moving average crossing at 80.73. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If June extends the rally off last week's low, the reaction high crossing at 83.33 is the next upside target. Closes below the 10-
day moving average crossing at 79.96 would temper the near-term friendly outlook in the Dollar. First resistance is Monday's high crossing at 81.53. Second resistance is the reaction high crossing at 83.33. First support is the 10-day moving average crossing at 79.96. Second support is last Tuesday's low crossing at 78.37.

The June Euro was lower overnight and is trading below support marked by the 20-day moving average crossing at 138.882. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 138.882 are needed to confirm that a short-term top has been posted. If June renews the rally off April's low, December's high crossing at 145.900 is the next upside target. First resistance is the 10-day moving average crossing at 140.535. Second resistance is last Wednesday's high crossing at 143.380. First support is Monday's low crossing at 138.040. Second support is the reaction low crossing at 134.200.

The June British Pound was higher overnight as it extends Monday's short covering rally but remains below the 10-day moving average. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 1.5843 are needed to confirm that a short-term top has been posted. If June renews this spring's rally, the 50% retracement level of the 2008-2009 decline crossing at 1.6733 is the next upside target. First resistance is the 10-day moving average crossing at 1.6175. Second resistance is last Wednesday's high crossing at 1.6665. First support is the 20-day moving average crossing at 1.5843. Second support is Monday's low crossing at 1.5802.

The June Swiss Franc was lower overnight as it extends Monday's decline below the 20-day moving average crossing at .9176. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If June extends the decline off last week's high, the reaction low crossing at .8876 is the next downside target. Closes above the 10-day moving average crossing at .9277 would confirm that a short-term low has been posted. First resistance is the 10-
day moving average crossing at .9277. Second resistance is last Tuesday's high crossing at .9443. First support is Monday's low crossing at .9102. Second support is the reaction low crossing at .8876.

The June Canadian Dollar was higher overnight due to short covering as it consolidated some of Monday's decline but remains below the 10-day moving average. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 88.70 would confirm that a short-term top has been posted while opening the door for additional weakness during June. If June renews this spring's rally, the 75% retracement level of the May-March decline crossing at 95.26 is the next upside target. First resistance is the 10-day moving average crossing at 90.57. Second resistance is last Monday's high crossing at 92.73. First support is the 20-day moving average crossing at 88.71. Second support is Monday's low crossing at 88.55.

The June Japanese Yen was slightly higher overnight due to short covering as it consolidates some of last Friday's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If June extends the decline, the reaction low crossing at .10025 is the next downside target. Closes above the 20-day moving average crossing at .10414 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at .10341. Second resistance is the 20-day moving average crossing at .10414. First support is last Friday's low crossing at .10112. Second support is the reaction low crossing at .10025.

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