Forex4you Technical Analysis 13 January 2011
EUR/USD: Technical Analysis
The "bulls" breached resistance at 1.3060/80 and level 1.3150 is about to be tested as the next resistance. Its breakout will indicate a medium-term "bullish" trend, like it has been mentioned in the previous analysis. Indicators say in favor of a breakout and suggest to expect the next stop at level 1.3230/50, considered previously as the key level on the way up. If it's breached, we'll be anticipating a strong "bullish" potential and levels 1.3440-1.3460 tests in the near future. At the same time, the above mentioned levels are strong enough to hinder growth and bring the trading back down with local minimum tests at 1.2795, 1.2700/10. Reversal below support 1.3080/60 should be considered at the obvious sign for that.
EUR/JPY: Technical Analysis
Looking at the current rally it is debatable now whether is an Elliot 4th wave of the fall since the 4th Jan. Firstly it has extended into the territory of wave 2 and it is also now much longer than would normally be expected. The only other possibility is that it is part of an ending diagonal. It may be that the larger cyclical forces at work are placing more than average buying pressure on the pair and that could explain the sudden extended rally and missing 5th.
There is overhead resistance currently from an upper channel line drawn down from the middle of December and there may be a rebound down to 108.75 initially and then lower if here is a break down through the trend-line up from the 10th January lows. The monthly pivot is at 109.45 not far above the current level so any further upside may stall there.
GBP/USD: Technical Analysis
The price breached level 1.5680/60 and continued to rise, bringing forward the expectations of level 1.5840/50 test, mentioned in the prior analysis. The price rose to 1.5780, meeting a strong resistance there, so it currently consolidates at level 1.5740/30. Indicators are turned up, suggesting further growth to 1.5840/50. At the same time, the price has recently entered the range, full of strong resistance/support levels, which may give us reasons to expect quite a long-term consolidation within this narrow range. To correct their positions, the "bears" have to drag the price below level 1.5660/50 and fix there. In this case we'll be expecting a revesal to the "bearish trend".
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.
The "bulls" breached resistance at 1.3060/80 and level 1.3150 is about to be tested as the next resistance. Its breakout will indicate a medium-term "bullish" trend, like it has been mentioned in the previous analysis. Indicators say in favor of a breakout and suggest to expect the next stop at level 1.3230/50, considered previously as the key level on the way up. If it's breached, we'll be anticipating a strong "bullish" potential and levels 1.3440-1.3460 tests in the near future. At the same time, the above mentioned levels are strong enough to hinder growth and bring the trading back down with local minimum tests at 1.2795, 1.2700/10. Reversal below support 1.3080/60 should be considered at the obvious sign for that.
EUR/JPY: Technical Analysis
Looking at the current rally it is debatable now whether is an Elliot 4th wave of the fall since the 4th Jan. Firstly it has extended into the territory of wave 2 and it is also now much longer than would normally be expected. The only other possibility is that it is part of an ending diagonal. It may be that the larger cyclical forces at work are placing more than average buying pressure on the pair and that could explain the sudden extended rally and missing 5th.
There is overhead resistance currently from an upper channel line drawn down from the middle of December and there may be a rebound down to 108.75 initially and then lower if here is a break down through the trend-line up from the 10th January lows. The monthly pivot is at 109.45 not far above the current level so any further upside may stall there.
GBP/USD: Technical Analysis
The price breached level 1.5680/60 and continued to rise, bringing forward the expectations of level 1.5840/50 test, mentioned in the prior analysis. The price rose to 1.5780, meeting a strong resistance there, so it currently consolidates at level 1.5740/30. Indicators are turned up, suggesting further growth to 1.5840/50. At the same time, the price has recently entered the range, full of strong resistance/support levels, which may give us reasons to expect quite a long-term consolidation within this narrow range. To correct their positions, the "bears" have to drag the price below level 1.5660/50 and fix there. In this case we'll be expecting a revesal to the "bearish trend".
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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