FOREX EUR/USD 10th July 2008

"The 3-day filter has caught up with price, which often suggests that a breakout of the 5-day 50% level and continuation upwards is a probability pattern, which is part of the Weekly set-up.

However more often than not, price will push down a minimum 41 pips from that same level.

Therefore expectation that the 5-day 50% level can form resistance and push down during the Euro hours, and if price is going to continue higher, as part of the Weekly set-up, then more often than not it will break higher in the US day session."

Yesterday's Report

Euro Daily and 3-day pattern

Euro pushed up into the 5-day 50% level reversed down 41 pips, and then continued higher in the US session, back towards Wednesday's highs....

Euro 3-day filter

So far the Euro is following the Weekly set-up, and has broken out of the 3-day filter.

In theory price should remain above the breakout level and continue higher on Thursday.

High Risk Trading longs below the 5-day 50% level on Thursday.

Trading shorts below the 5-day 50% level isn't a probability pattern

• All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT

Exact levels shown for current day aren't confirmed until midnight GMT