Euro In Long Wedge, Pound in Shorts, Yen Rebounding

Be careful trading overnight ahead of Bernanke's speech at Jackson Hole Wyoming. Last year the same event sent the markets into a tailspin. So. Have your stops in. Remember that news events don't start new trends, they generally take trends to their targets. So, stay with the trend. Bernanke will be explaining the US interest rate policy. We already know rates will be staying low to 2013.

Euro:

Talking of trends, hopefully Bernanke can bring some clarity to the euro. It is in a very choppy formation and still looks like a wedge, though on the daily, the euro continues in a long from 1.42883 with a target at 1.46285. This is not pretty though.

On the 15 min chart, the euro is in a range. The next traditional short is at 1.4392, which coincides with the daily pivot at 1.4393. The target is at 1.4296.

Pound:

On the daily, the pound broke its long setups and is in extension shorts since on the 15 min chart.

On the 15 min chart, the pound is in an extension short at 1.6302, with a target at 1.624. The line in the sand is at 1.6312.

Yen:

On the daily, the yen rebounded after hitting all time low 75.944 and is moving up into its next traditional short at 78.09, with a target at 74.93, which would obviously be another all time low. The break in trend is at 78.59.

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The Forex analysis is written by Diana Rochford for Forexpro