Free Forex Signal

Tue, Feb 5 2008, 01:36 GMT
http://www.afxnews.com

BEIJING (XFN-ASIA) - The central bank has set the yuan central parity rate at a record 7.1846 to the dollar, according to the China Foreign Exchange Trading System.

The rate, published on the official Chinamoney website (www.chinamoney.com.cn), compares with the midpoint of 7.1923 set the previous trading day.

The People’s Bank of China (PBoC) started setting a daily central parity rate on Jan 4, 2006.

On July 21, 2005, China freed the yuan from its long-standing peg to the dollar in favor of a trade-weighted basket of currencies, and allowed the local unit to appreciate by 2.1 pct.

The PBoC allows a trading band of 0.5 pct on either side of the central parity rate.

zachary.wei@xfn.com

EURUSD is now the pair that sets the fashion at the market, at the daily graph it is situated within a fixed range (“triangle” shape). Development of dollar’s situation will depend on EURUSD variants: whether it will be able to break the higher bound of a shape, or it will remain within the range, being corrected in the 5th wave of a shape to its lower bound “M” – 1.4420 level. But dollar growth is being supported not only by the 5th wave of triangle over EURUSD but also by GOLD, which is now in “Wolf waves” model, bounced off the 5th wave and forwarding to the 6th (850.90). In fact, gold is also in a turned “double top” shape and its lower bound – the support – is at 871.07. If it will be broken GOLD will descend not only to the 6th Wolf wave, but further to the target level 821.29, meaning that at that time EURUSD pair will have to break “triangle” shape and then we would expect going down to 1.3740, and therefore a serious strengthening of dollar.

EURUSD

At the daily graph the pair is situated within a fixed range of “triangle” shape. Upon bouncing off its higher bound “M+” the descending 5th internal wave of the shape is developing now with the target 1.4420. But I consider such variant only in the case if the trend line “b” will be broken, because the pair continues growing efforts and the descending impulse isn’t that strong.
While the pair is situated below “a-a+” trend and “M+” trend line (the lower bound of the “triangle” shape) the descending tendency remains. There are 2 resistances at the moment: 1.4840 and the key 1.4875 – one of these will stop the ascending correction. I advise to sell upon breaking of “b” trend line with a target 1.4667 at least. Strategically, I will try hard to grow positions to sell with a target 1.4420.
D1 graph

At the daily graph the pair is situated within a fixed range of “triangle” shape. Upon bouncing off its higher bound “M+” the descending 5th internal wave of the shape is developing now with the target 1.4420. If the higher bound “M+” will be broken, the pair will look forward to 1.5550 level. If the lower bound “M” will be broken, then to 1.3740. Dollar situation depends on the direction in which “triangle” shape will be broken.

GBPUSD

The pair found its support at 1.9663 and started the ascending correction, which was caused also by descending tendencies over EURGBP. Ascending correction may last until the resistance 1.9868. In the perspective I expect the pair at 1.9396 minimally. But at the moment GBP is a very weak currency and I don’t expect the strict execution of a technical picture from it; that’s why I won’t enter the market with this pair, and I advise the same to you. See also the EURGBP forecast. The resistance is currently at 0.7517.

USDCHF

Although upon breaking “a-a+” descending trend an ascending trend should start, at H1 a turned “double top” shape has formed. It may force the pair to go down to 1.0810 support, after what the ascending movement will continue at least to the 1.0991 resistance, and strategically to 1.1290 level. Also there is a support at 1.0868 (I forgot to mark it on the graph).
http://forexmillion.com/images/GRAPH…sdchf%20h4.gif - H4
http://forexmillion.com/images/GRAPH…sdchf%20d1.gif - D1

As dlr has retreated after meeting selling at
107.10 y’day, suggesting the rise fm 105.71 has pos
sibly formed a top n consolidation with downside
bias is seen for retrace. twds 106.40/45 but reckon
minor sup at 106.12/15 wud limit weakness in Asia.

Sell on recovery with stop abv said res, break
wud abort n risk further gain to 107.30/35…

Range Forecast
106.55 / 106.85

Resistance/Support
R: 107.10/107.47/107.90
S: 106.40/106.12/105.71