Forex4you Technical Analysis 16/09/10
EUR/USD: Technical Analysis
This pair is finely balanced and there is evidence for both sides. At its current level of 1.3030 it is hitting some formidable resistance from Fibonacci lines, the 38.2% from the ’00 – ’09 bull market and the 61.8% from the recent fall from the August highs. The pair has also reached resistance from the top of the Ichimoku cloud and the trend-line down from the ’09 highs. Also the move up from the 24th August lows shows persuasive symmetry with wave A equalling wave C exactly, which is the most common relationship for such a pattern. The only problem is that the C leg appears incomplete from an Elliot wave perspective. There are only 3 or 4 waves and the 5th wave is missing. Using Fibonacci ratios we can extrapolate the possible end of 5 in the 1.3180s or perhaps 1.3145 where prices would meet resistance from trend-line and the R1 monthly pivot. It is quite possible there will be a rally to that area first before a correction and possibly the start of a major decline, with an initial target in the1.2880s.
GBP/USD: Technical Analysis
This pair will probably rally a little higher before there is a strong chance of a correction or continuation of the broader trend down. The recent move up appears incomplete with one wave missing. The pair may enter a sideways consolidation phase for a while before the next move up. A final rally might take the pair to highs of 1.5700 where there is overhead resistance from old highs and a monthly pivot nearby.
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.
This pair is finely balanced and there is evidence for both sides. At its current level of 1.3030 it is hitting some formidable resistance from Fibonacci lines, the 38.2% from the ’00 – ’09 bull market and the 61.8% from the recent fall from the August highs. The pair has also reached resistance from the top of the Ichimoku cloud and the trend-line down from the ’09 highs. Also the move up from the 24th August lows shows persuasive symmetry with wave A equalling wave C exactly, which is the most common relationship for such a pattern. The only problem is that the C leg appears incomplete from an Elliot wave perspective. There are only 3 or 4 waves and the 5th wave is missing. Using Fibonacci ratios we can extrapolate the possible end of 5 in the 1.3180s or perhaps 1.3145 where prices would meet resistance from trend-line and the R1 monthly pivot. It is quite possible there will be a rally to that area first before a correction and possibly the start of a major decline, with an initial target in the1.2880s.
GBP/USD: Technical Analysis
This pair will probably rally a little higher before there is a strong chance of a correction or continuation of the broader trend down. The recent move up appears incomplete with one wave missing. The pair may enter a sideways consolidation phase for a while before the next move up. A final rally might take the pair to highs of 1.5700 where there is overhead resistance from old highs and a monthly pivot nearby.
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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