Forex4you Technical Analysis 20/07/10
GBP/USD: Technical Analysis
The apprehensions of the upturn’s recovery were well-grounded, because the formerly predicted scenario was accomplished – the price bounced out of the support at 1.4870 and also out of the trend line of the upgrading channel (the blue lines); it achieved the new local maximum at 1.5200/10 as well. The trading is currently carried at 1.5170/60. The indicators’ values still prefer the advance and that in its turn means the probability of the upgrading till the next resistance at 1.5230/50, which was also mentioned yesterday. The breach of this obstacle on the way upward will determine very powerful potentials of the upgrading trend with the prospects of quite a near-term checkup of the range of 1.5500/1.5600. Meanwhile, the above mentioned degree of 1.5230/50 may be a point of reversal. If the price tumbles below 1.5000/1.4980 the variants of the “bearish” comeback to the market predominance will be relevant. The conclusive confirmation of the reversal will appear in case of the breach and trades’ fixation below the trend line of the upgrading channel (the blue lines), which proved its worth as a key support on the way down. While planning the today trading it’s necessary to take into account the peculiarities of the day, which are connected to the publication of the very significant data on the US employment. Obviously, the trading will be narrow-ranged until the representation of this information.
EUR/USD: Technical Analysis
The breach of the resistance at 1.2340/50 meant the market’s choice of the “bullish” scenario of the events’ development: the price went ahead upturning and stopped at 1.2540 only; it has rolled back to 1.2500/10 up to now. The formerly mentioned resistance at 1.2430/60 rebuffed the run of the “Bulls” for a while. The indicators are currently demonstrating the great change of the market climate – R% entered the over purchased zone, SS reversed and is directed upgrading, MACD upraised above zero. The environment of the kind will obviously afford grounds for presuming the continuation of the advance till the resistance at 1.2620/00, which may become an insurmountable obstacle, which will probably reverse the upgrading move. However, in case of the breach of this backstop for the advance the probability of the trades’ uplift till the resistance at 1.2700 will rapidly increase, and also the risk of the Euro’s strengthening up to 1.2900/20 will significantly enlarge. Most likely, it’s reasonable to wait for the active steps just from the beginning of the American session only, because the market is looking forward the publication of the US Main Labor Report for June.
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 apprehensions of the upturn’s recovery were well-grounded, because the formerly predicted scenario was accomplished – the price bounced out of the support at 1.4870 and also out of the trend line of the upgrading channel (the blue lines); it achieved the new local maximum at 1.5200/10 as well. The trading is currently carried at 1.5170/60. The indicators’ values still prefer the advance and that in its turn means the probability of the upgrading till the next resistance at 1.5230/50, which was also mentioned yesterday. The breach of this obstacle on the way upward will determine very powerful potentials of the upgrading trend with the prospects of quite a near-term checkup of the range of 1.5500/1.5600. Meanwhile, the above mentioned degree of 1.5230/50 may be a point of reversal. If the price tumbles below 1.5000/1.4980 the variants of the “bearish” comeback to the market predominance will be relevant. The conclusive confirmation of the reversal will appear in case of the breach and trades’ fixation below the trend line of the upgrading channel (the blue lines), which proved its worth as a key support on the way down. While planning the today trading it’s necessary to take into account the peculiarities of the day, which are connected to the publication of the very significant data on the US employment. Obviously, the trading will be narrow-ranged until the representation of this information.
EUR/USD: Technical Analysis
The breach of the resistance at 1.2340/50 meant the market’s choice of the “bullish” scenario of the events’ development: the price went ahead upturning and stopped at 1.2540 only; it has rolled back to 1.2500/10 up to now. The formerly mentioned resistance at 1.2430/60 rebuffed the run of the “Bulls” for a while. The indicators are currently demonstrating the great change of the market climate – R% entered the over purchased zone, SS reversed and is directed upgrading, MACD upraised above zero. The environment of the kind will obviously afford grounds for presuming the continuation of the advance till the resistance at 1.2620/00, which may become an insurmountable obstacle, which will probably reverse the upgrading move. However, in case of the breach of this backstop for the advance the probability of the trades’ uplift till the resistance at 1.2700 will rapidly increase, and also the risk of the Euro’s strengthening up to 1.2900/20 will significantly enlarge. Most likely, it’s reasonable to wait for the active steps just from the beginning of the American session only, because the market is looking forward the publication of the US Main Labor Report for June.
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.
Views: 3
Comment
© 2024 Created by James Dicks.
Powered by
You need to be a member of JDFN Financial Network to add comments!
Join JDFN Financial Network