Forex Forexcast : Daily Technical Analysis - 23 November 2010
EUR/USD: Technical Analysis
The market chose a downward scenario, like it had been previously assumed. Resistance range 1.3720/70 hadn't been breached, so the price pulled back downwards and fell below support 1.3640/50, mentioned earlier. The trading tested level 1.3520/30, but then went up and is currently carried on at level 1.3590/1.3600. Indicators are unsure which direction to show, though they seem to be more inclined to a downtrend, suggesting the "bearish" moods as dominating, which means that support 1.3380/90 is likely to be tested in the nearest future. Nevertheless, the outlook is vague, so range trading within 1.3650 – 1.3570/60 is also a possibility. Conditions for the alternative scenario - reversal to growth - are still the same - resistance 1.3960/70 breakout with the following fixation above. Until it happens, a reversal to the "bearish" trend seems to be most likely.
EUR/JPY: Technical Analysis
The bullish-engulfing candlestick yesterday heralded a probable continuation lower, perhaps to the trend-line at 112.00. The monthly pivot at 113.10 is still stubbornly resisting further declines but it should give way eventually, however, a thrust higher might go as far as the trend-line at 113.80.
Longer term there is mounting evidence for a more substantial bullish move. There is an inverted head & shoulders pattern at the August lows and a significant multi-year trend-line at about the same level as the neckline. The large impulse down from the ’08 highs has completed. A decisive break above the 115 mark would indicate a break-out which could rally up to 121.50 (the objective for the H&S). A break below 112.30 on the other hand would negate the likelihood of this happening and lead to a probable continuation of the trend down. Follow our new Forex4you Blog
Analysis by: Forex4you.com
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
The market chose a downward scenario, like it had been previously assumed. Resistance range 1.3720/70 hadn't been breached, so the price pulled back downwards and fell below support 1.3640/50, mentioned earlier. The trading tested level 1.3520/30, but then went up and is currently carried on at level 1.3590/1.3600. Indicators are unsure which direction to show, though they seem to be more inclined to a downtrend, suggesting the "bearish" moods as dominating, which means that support 1.3380/90 is likely to be tested in the nearest future. Nevertheless, the outlook is vague, so range trading within 1.3650 – 1.3570/60 is also a possibility. Conditions for the alternative scenario - reversal to growth - are still the same - resistance 1.3960/70 breakout with the following fixation above. Until it happens, a reversal to the "bearish" trend seems to be most likely.
EUR/JPY: Technical Analysis
The bullish-engulfing candlestick yesterday heralded a probable continuation lower, perhaps to the trend-line at 112.00. The monthly pivot at 113.10 is still stubbornly resisting further declines but it should give way eventually, however, a thrust higher might go as far as the trend-line at 113.80.
Longer term there is mounting evidence for a more substantial bullish move. There is an inverted head & shoulders pattern at the August lows and a significant multi-year trend-line at about the same level as the neckline. The large impulse down from the ’08 highs has completed. A decisive break above the 115 mark would indicate a break-out which could rally up to 121.50 (the objective for the H&S). A break below 112.30 on the other hand would negate the likelihood of this happening and lead to a probable continuation of the trend down. Follow our new Forex4you Blog
Analysis by: Forex4you.com
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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