Market Commentary

Welcome to the brainyforex newsletter special commentary.

Market Update 25 November 2009

US Dollar daily chart 24 November 2009.

The major currencies have not been trending very well in the prior week or the start of this week.

We can see the reason for this from the US Dollar chart shown above. We see that price is currently trapped in a trading range between 75c and 76c.

(Notice that the 76c level is a 50 percent level of the 77c and 75c natural square levels. All natural square levels can be divided into further 50 percent levels for shorter term time frames).

Notice yet again, how powerful the natural square level of 75.00 has been over the last two weeks. By knowing the possibility of this support level in advance, we can make trading decisions far ahead of those traders that do not know about these natural support and resistance levels.

It is anticipated that price will soon break the 75c level to the downside as the longer term trend indicates weakness in the US Dollar. Once this happens, we can look for good opportunities to trade the individual currencies paired to the dollar.

Remember, when the US Dollar moves down, pressure is placed on AUD/USD, EUR/USD and GBP/USD to move upwards. And USD/JPY, USD/CAD and USD/CHF (should) move downwards.

Regards
Fritz
www.brainyforex.com