Welcome to Prolific Daily Market Commentary and Trades Analysis for Monday, August 9,2010.

The Euro decline against the dollar today and is currently trading at 1.3217. As indicated in my previous commentary this pair is trading within a short to medium term bullish market structure and our trading plan is to buy the dips. See my previous commentary below:

On January 31,2003, the EUR/USD currency pair breaks above the Prolific Decison Node(PDN). At the time of break out the outer boundary of the node was reading 1.0534. This level according to our trading methodology serve as a final resistance level. Normally if this level is broken there is a high probability the price will trade higher.The pair then rally to a high of 1.1932 before retracing back to the Prolific Decision Node(PDN) with a low of 1.0793 on August 29,2003.

The pair found support above the outer boundary of the Node then rally to a higher high of 1.3666 on December 31, 2004. This price level serve as a resistance point until September 28, 2007 when the EURO breaks out of the resistance zone and trade to an all time high of 1.6038 on July 1, 2008.

During the financial crises the euro pullback into the Prolific Decision Node(PDN) then make a lower high of 1.5145 on November 1, 2009.

After the November high of 1.5145, the euro plunge to a low of 1.2142. This low of 1.2142 was within the lower boundary of the Prolific Decision Node(PDN) which serve as a strong support level.

In this video we will look at a pictorial view of the previous price Action and look at a few high probability trades setup using a top down approach.

Prolific Daily Commentary and Trades Analysis

**Forex, Futures and Commodities trading involves substantial risk of loss and is not suitable for all investors.

U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. Click here to continue reading