Forex4you Technical Analysis 2 August 2011

EUR/USD: technical analysis

Forecats, predicting that the bears would make another attempt to take the price down confirmed. Trading went back downwards and the price successfully breached the key support on the way down - level 1.4260/50. At the moment trading is being carried out around 1.4180/90 levels. Indicators have changed their readings and they now suggest a decline, which gives enough reasons to anticipate further downtrend. The closest support is found at level 1.4120, which breakout would indicate the "bearish" sentiment in the market. The next target in this case will be 1.3850/60 support level with level 1.4000 as another significat barrier on the way. Reversal to growth is possible, but very unlikely - to make it happen the price has to breach 1.4330-1.4250/60 resistance range.

GBP/USD: technical analysis

Earlier forecasts, predicting that trading may recommence its decline confirmed. The price went down to level 1.6250/60 and it's currently making another attempt to breach this barrier on the way down. MACD divergence realised, the rest indicators suggest further decline and give reasons to consider this barrier to be breached. Downtrend is likely to continue to level 1.6200/1.6190. 1.6190/60 support breakout would suggest the bearish trend in a medium-term. On the other hand, until the key support is breached, we can still anticipate reversal to growth as a highly possible event. Resistance 1.6450/40 will open the way to targets at 1.6600/1.6700 levels.

Analysis 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.