Forex4you Technical Analysis 02 July 2011

EUR/USD: Technical Analysis

The euro-dollar is continuing to rise despite a drop-off in momentum. It has broken out of the triangle pattern but has not followed-through. Whilst there is a possibility of a pullback to support and resistance at 1.4500 or even 1.4480, there are no strong signs of reversal or weakness so the uptrend could continue. The point and figure charts all have uptrends intact and there is a clustering of targets in the 1.4650 region, which could be the ultimate destination.

GBP/USD: Technical analysis

The bulls made another attempt to breach resistance 1.6100/20/40 (yellow segment), like we had previously anticipated. The price reached level 1.6135, and then pulled back to 1.6110/15, where is currently resides. Indicators suggest further growth, which gives enough reasons to expect the price to  successfully surpass 1.6100/40 barrier. All further forecasts depend on whether the breakout takes place – if it does, the price will first ascend to 1.6220/30 resistance line, and then to level 1.6320. On the other hand, the bears still have good chances to recommence their trend – decline below 1.6050/40 level would indicate a reversal to 1.5940/20 support line.

Analysis by: Arkady Nagiev    

                    Forex4you analyst

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