July 1, 2009 Forex Market Recap

After the 8:15am event, British pound rallied until met resistance at pivot point (1.6543), and formed a symmetrical triangle pattern. For such pattern there is no need to predict the breakout direction, since both directions are possible. It turned out it's a breakdown.

Last night, euro formed a double bottom at yesterday's low 1.4001. The reversal signal was given at the beginning of London session after a breakout from the bottom range. After the breakout, the temporary dip found support at the top of the bottom range. A high probability long position entry was given when euro took a breakout from the symmetrical triangle. The rally reached euro's average daily range at 1.4164, which is right above yesterday's high 1.4152. There is a 70-pip spike in just 3 minutes (11:58-12:00pm).

Forex alerts for July 2, 2009
Yen was a NR7 today. Be prepared for a trending day.