Forex4you Technical Analysis 05/10/10
EUR/USD: Technical Analysis
The correction reached even lower supports, the price went below level 1.3710. Level 1.3660/10, previously mentioned as the key support on the way downwards, withstood the “bearish” pressure, and the price returned to growth, testing level 1.3630/40. The trading is currently carried on at 1.3780/90. Indicators prefer growth, though MACD divergence, on the contrary, makes us doubt of a possible growth to the new maximums. Sideways consolidation is therefore more likely to continue. The fall of the trading below support range 1.3660/10 is seen as a signal to a massive downward consolidation range extension. In this case, the correction will probably stretch to level 1.3240/20. Resistance 1.3820 breakout with fixation above will be a sign, that the “bulls” are getting closer to level 1.3950/60.
USD/JPY: Technical Analysis
Support level 83.10/00 is rather strong, so it successfully withstands the “bearish” attempts to bring the trading down to the lower levels. Fears of a possible BoJ intervention also influence the market. Indicators suggest growth in the pair. Level 83.90/84.00 is currently seen as the key resistance, which breakout would mean that the “bulls” have all chances to resume their trend to bring the price back to 85.80/90. The fall below 83.00 is unlikely, because this support has a strong “psychological” effect. In other words, the investors are anxious, that the BoJ will start buying the yen again, in case this level is breached.
GBP/USD: Technical Analysis
The whole move up from the May lows looks rather mature and there is a strong possibility now that a correction lies on the horizon. On the 4-hour chart you will see the volatile highs and lows forming a rare diamond top pattern. If prices fall below 1.5749 then that would trigger the breakout from the diamond with a target of 1.5500, although for something ‘closer to home’ opt for the monthly pivot at 1.5650. If prices break above the recent highs at 1.5920 then the pattern will have failed and prices may run up rapidly to the next level of resistance at 1.5988 where the R1 pivot rests.
AUD/USD: Technical Analysis
The correction started when price tested level 0.9740/50, which is below previously mentioned resistance level 0.9765, so the price currently resides at 0.9590/70. Uptrend channel line breakout (red lines) gives reasons to expect further deep correction with consolidation range support at level 0.9460. Indicators suggest the fall of the price, which proves the later assumptions about further downward movement. If this movement is active enough and support level 0.9340 is breached, we’ll get the first signal to a possible medium-term trend’s reversal in this pair.
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 correction reached even lower supports, the price went below level 1.3710. Level 1.3660/10, previously mentioned as the key support on the way downwards, withstood the “bearish” pressure, and the price returned to growth, testing level 1.3630/40. The trading is currently carried on at 1.3780/90. Indicators prefer growth, though MACD divergence, on the contrary, makes us doubt of a possible growth to the new maximums. Sideways consolidation is therefore more likely to continue. The fall of the trading below support range 1.3660/10 is seen as a signal to a massive downward consolidation range extension. In this case, the correction will probably stretch to level 1.3240/20. Resistance 1.3820 breakout with fixation above will be a sign, that the “bulls” are getting closer to level 1.3950/60.
USD/JPY: Technical Analysis
Support level 83.10/00 is rather strong, so it successfully withstands the “bearish” attempts to bring the trading down to the lower levels. Fears of a possible BoJ intervention also influence the market. Indicators suggest growth in the pair. Level 83.90/84.00 is currently seen as the key resistance, which breakout would mean that the “bulls” have all chances to resume their trend to bring the price back to 85.80/90. The fall below 83.00 is unlikely, because this support has a strong “psychological” effect. In other words, the investors are anxious, that the BoJ will start buying the yen again, in case this level is breached.
GBP/USD: Technical Analysis
The whole move up from the May lows looks rather mature and there is a strong possibility now that a correction lies on the horizon. On the 4-hour chart you will see the volatile highs and lows forming a rare diamond top pattern. If prices fall below 1.5749 then that would trigger the breakout from the diamond with a target of 1.5500, although for something ‘closer to home’ opt for the monthly pivot at 1.5650. If prices break above the recent highs at 1.5920 then the pattern will have failed and prices may run up rapidly to the next level of resistance at 1.5988 where the R1 pivot rests.
AUD/USD: Technical Analysis
The correction started when price tested level 0.9740/50, which is below previously mentioned resistance level 0.9765, so the price currently resides at 0.9590/70. Uptrend channel line breakout (red lines) gives reasons to expect further deep correction with consolidation range support at level 0.9460. Indicators suggest the fall of the price, which proves the later assumptions about further downward movement. If this movement is active enough and support level 0.9340 is breached, we’ll get the first signal to a possible medium-term trend’s reversal in this pair.
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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