Forex4you Technical Analysis 17 January 2011
EUR/USD: Technical Analysis
Something of a reversal occurred at the 1.3250 highs and the exchange rate has fallen sharply overnight. There is a head and shoulders top pattern on the hourly chart which has broken its neckline and has a downside target of 1.3180. This coincides with a support level at 1.3170. In Elliot terms this may be a wave 4 correction of the rise from the 10th, so once the exchange rate finds support it may rally back up to the highs again in a final wave 5.
EUR/JPY: Technical Analysis
We are probably in a 4th Elliot wave of the rise from the 10th Jan lows. It may have further to go; it may have finished - it has completed the minimum requirement by crossing to below the MACD zero-line. This could imply wave 5 up may be near at hand. There is also support from the trend-line from the 10th Jan lows and the exchange rate is posting a hammer candlestick on the hourly. There was a bullish weekly engulfing candlestick last week which has upside potential although this must be mitigated in the short term by yesterday’s hanging man and today’s confirmatory drop. Eventually wave 5 will rally, probably reaching the recent highs and surpassing them a little, with an upside target of 111.25 where the monthly pivot rests. If wave 4 extends it might be expected to reach support at 108.90 – although there may be a small recovery to 110.10 initially.
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.
Something of a reversal occurred at the 1.3250 highs and the exchange rate has fallen sharply overnight. There is a head and shoulders top pattern on the hourly chart which has broken its neckline and has a downside target of 1.3180. This coincides with a support level at 1.3170. In Elliot terms this may be a wave 4 correction of the rise from the 10th, so once the exchange rate finds support it may rally back up to the highs again in a final wave 5.
EUR/JPY: Technical Analysis
We are probably in a 4th Elliot wave of the rise from the 10th Jan lows. It may have further to go; it may have finished - it has completed the minimum requirement by crossing to below the MACD zero-line. This could imply wave 5 up may be near at hand. There is also support from the trend-line from the 10th Jan lows and the exchange rate is posting a hammer candlestick on the hourly. There was a bullish weekly engulfing candlestick last week which has upside potential although this must be mitigated in the short term by yesterday’s hanging man and today’s confirmatory drop. Eventually wave 5 will rally, probably reaching the recent highs and surpassing them a little, with an upside target of 111.25 where the monthly pivot rests. If wave 4 extends it might be expected to reach support at 108.90 – although there may be a small recovery to 110.10 initially.
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.
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