Forex4you - Daily Technical Analysis 07/10/10
EUR/USD: Technical Analysis
The price tested level 1.3950/60, which proved to be strong enough to hold back the “bulls” for some time. Then the level has been breached, the price tested one more level -1.3990- and now it resides at 1.3960/70. Indicators show no changes and still suggest growth. But taking into account MACD divergence, we should probably expect one another bounce of the euro to 1.4010/10 and then be ready to a large-scale pullback downwards, which can take place any moment. Support level 1.3820/00 breakout will suggest a serious change of moods in the market, which will finally prove if the price drops below support 1.3660/10 range.
GBP/USD: Technical Analysis
The diamond pattern which formed on the 4 hour chart during the week has failed to trigger and instead the pair has continued rallying up to resistance at 1.5990 where the R1 monthly pivot resides. This is also the level of the old August highs. The exchange rate could very well keep rallying higher, with the next major point of resistance the monthly pivot at 1.6270. Alternatively these highs could mark another short term top before falling back down to the 1.5850s.
Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst
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 price tested level 1.3950/60, which proved to be strong enough to hold back the “bulls” for some time. Then the level has been breached, the price tested one more level -1.3990- and now it resides at 1.3960/70. Indicators show no changes and still suggest growth. But taking into account MACD divergence, we should probably expect one another bounce of the euro to 1.4010/10 and then be ready to a large-scale pullback downwards, which can take place any moment. Support level 1.3820/00 breakout will suggest a serious change of moods in the market, which will finally prove if the price drops below support 1.3660/10 range.
GBP/USD: Technical Analysis
The diamond pattern which formed on the 4 hour chart during the week has failed to trigger and instead the pair has continued rallying up to resistance at 1.5990 where the R1 monthly pivot resides. This is also the level of the old August highs. The exchange rate could very well keep rallying higher, with the next major point of resistance the monthly pivot at 1.6270. Alternatively these highs could mark another short term top before falling back down to the 1.5850s.
Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst
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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