Forex4you Technical Analysis 20/12/10

EUR/USD: Technical Analysis

Forecast about the upcoming correction to growth proved to be correct, though a  decline was continious and the price met support only at level 1.3150/40. Currently, the trading is carried out at 1.3160/70.  Indicators are turned down, suggesting to expect the "bearish" trend as a higher possibility. So, a decline is likely to continue, with the next support seen at 1.3050/60. Nevertheless, level 1.3150/40 seems to be strong enough to hold back a decline for quite a long time, which gives reasons to expect further correction within the range  1.3200/1.3180 – 1.3150/40. The alternative scenario - level 1.3400/10 - 1.3450/60 breakout with the following fixation above- will be a signal to changes in the market moods.



GBP/USD: Technical Analysis

Minimums at 1.5480/90 were tested like it had been expected and the price took another attempt for further decline, only touching level 1.5450. Then the price retraced upwards and is currently consolidating around levels 1.5540/50. Indicators seem to be turning up, though it can only be seen at R%. The growth may continue, and the biggest progress will be made at resistance 1.5650/60. Reversal to a down trend from the current levels is also a possibility and level 1.5480 breakout will initiate a decline to the next support at 1.5400/10. Significant changes in the market moods and further growth will only take place in case the price breaches level 1.5710/20 and fixes above.



Analysis by: Forex4you.com written by 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.