Market Commentary

Welcome to the brainyforex newsletter special commentary.

Market Update 11 November 2009

US Dollar daily chart 10 November 2009.

As seen from the above US Dollar chart, we notice that price is currently right on the 75c level. As posted in the market commentary section on the brainyforex home page at the beginning of this week this is what we expected may happen.

Remember last week, we had the thought that price for the US Dollar would meet resistance at the 77c level. That did take place. The highest price reached last week was 76.81.

This shows the incredible power of paying attention to natural square levels in our trading activities.

As the major currencies are paired to the US Dollar it is important to know which direction the US Dollar will likely move.

As noted on the brainyforex home page we are currently short USD/JPY, USD/CAD and USD/CHF. It is now a good idea to move stop losses closer to our entry level so as to reduce our risk. As the US Dollar is currently on support level we need to be extremely careful of a reversal move within the next day.

Remember, price could just as easily move straight down through this support level. We just need to be more careful right now.

If the US Dollar continues its downward move we will be riding our profits all the way down to the next potential natural square support level. The longer term charts indicate there is more downside in the US Dollar.
Till next week

Fritz
www.brainyforex.com