EURUSD Preparing for Bullish Correction?

By Greg Holden – I’d like to welcome everybody to the year 2010! I hope you enjoyed the New Year holiday celebrations this weekend. As many may have already noticed, last week’s trading did not represent what was actually happening in the forex market. The thin holiday trading week acted as a brief pause in trading as we transitioned from 2009 to 2010. In theory, we should see the market return to relatively normal trading behavior in the days ahead.

Glancing over our charts this morning I noticed two important trends to watch. The first is a consolidation of the EURUSD pair which seems to be preparing for a bullish correction to this morning’s down-turn. The second is the flattening out of Gold and Silver in preparation for what may be a bullish correction, coupled with the continued bull-run in Crude Oil. All of these commodity movements strongly increase the possibility of a bullish correction in the EURUSD, since commodity prices are directly linked with this oft-traded currency pair.

Early estimates put a price target around 1.44 for the EURUSD, and a pretty solid chance that Crude Oil will easily break $80 a barrel in a few hours time. You don’t want to miss out on these price movements! Get in the market today!

Forex Market Analysis provided by Forex Yard.

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