Market Forecast for 05-11-12

Today's analysis is focused on the Euro and includes information on the EURUSD and two other Euro crosses.

EURUSD: Potentially making a temporary low in here before likely heading down to the 162% extension target are of 1.2815, after a very nice profitable short trade from 1.3192.

ACTION: Look to continue to sell rallies on intraday charts as long as the 60-240 minute trends are down. Expect a 2-3 day corrective rally before going lower, but since the larger trends are still heading down, it's best for most traders to wait any rally out and sell it as the price is cresting. Here's the chart with the analysis:

eurusd chart with forecase

EURCHF: This pair is tightly wound up and getting ready for a breakout. Here are some potential trading opportunities:

Trade 1: BUY 1.20165 stop to open, use 1.2075 stop. Look for 30-90 pips profit

Trade 2: SELL 1.2053 stop to open, use 1.2023 stop. Look for 30-60 pips profit

See the daily chart of Euro-Swiss below:

eurchf daily chart

EURJPY: Is oversold and on the Andrews Median Line, suggesting that a low is eminent, and that a nice pop up should begin between now and Tuesday. Yes, its possible to have one more low first, but the EURUSD is also looking like it's making a temporary low in here.

ACTION: Look to buy dips on intra-day charts once the 15-240 minute trends turn up. The chart is provided below:

eurjpy chart

I will recap the recent group of highly profitable trades before next week.
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