Forex4you Technical Analysis 20/10/10
EUR/USD: Technical Analysis
The price fell below 1.3830, indicating a reversal to a downtrend, like it had been anticipated earlier, tested and then breached support 1.3780, and then met a barrier for its descending at level 1.3690, which is above the previously mentioned support at level 1.3660. Indicators show the weakening of the “bearish” moods, which gives reasons to doubt the assumptions of further downward movement. The currently tested resistance is rather significant – if the “bulls” breach range 1.3830/50 and fix above, we’ll be expecting a change of the trend in the pair. A reversal to a downtrend with targets 1.3660 and 1.3610 is, nevertheless, seen more of a possibility. If the price climbs above 1.4040 and breaks resistance 1.4080, the bearish scenario will be cancelled.
GBP/USD: Technical Analysis
Strong support at level 1.5780, mentioned in the previous comment, has been breached, so the price is already testing level 1.5665, mentioned yesterday as the closest target. Indicators keep showing a downward movement, which mean a high possibility for a further descend. Seems like now we can set the target at lower supports – levels 1.5600/1.5590 and then 1.5560/50. At the same time there is also a chance that strong support 1.5665 can hold back the “bears” for quite a long period of time and even trigger a pullback upwards to 1.5780/70. Growth above 1.6040/50 will indicate the alternative scenario, when a downward pullback is over and a medium-term bullish trend recommences.
EUR/JPY: Technical Analysis
The pair has bounced from the 111.55 lows achieved last night. The bounce could go higher, reaching the upper channel and trend-line of the move down at approximately 112.60. This target also coincides neatly with the point at which the first leg off the lows would equal the second leg. Currently on the 1 minute chart there is an extended sideways rectangular consolidation with ceiling at 112.28 and floor at 112.14. Depending on the direction of the breakout from that the pair will either achieve the earlier upside target or fall back down to support at 111.80.
USD/CAD: Technical Analysis
The move up from the lows made on the 14th October has completed a text-book zig-zag pattern. The exchange rate has now fallen off the highs and is going down. It is likely it will fall further, with some backing and filling along the way, at least until the trend-line made from the lows of the consolidation zone formed since the beginning of May is reached, at around 1.2325. The 50% retracement of the rally may be another place where the fall finds support, at 1.01750.
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 price fell below 1.3830, indicating a reversal to a downtrend, like it had been anticipated earlier, tested and then breached support 1.3780, and then met a barrier for its descending at level 1.3690, which is above the previously mentioned support at level 1.3660. Indicators show the weakening of the “bearish” moods, which gives reasons to doubt the assumptions of further downward movement. The currently tested resistance is rather significant – if the “bulls” breach range 1.3830/50 and fix above, we’ll be expecting a change of the trend in the pair. A reversal to a downtrend with targets 1.3660 and 1.3610 is, nevertheless, seen more of a possibility. If the price climbs above 1.4040 and breaks resistance 1.4080, the bearish scenario will be cancelled.
GBP/USD: Technical Analysis
Strong support at level 1.5780, mentioned in the previous comment, has been breached, so the price is already testing level 1.5665, mentioned yesterday as the closest target. Indicators keep showing a downward movement, which mean a high possibility for a further descend. Seems like now we can set the target at lower supports – levels 1.5600/1.5590 and then 1.5560/50. At the same time there is also a chance that strong support 1.5665 can hold back the “bears” for quite a long period of time and even trigger a pullback upwards to 1.5780/70. Growth above 1.6040/50 will indicate the alternative scenario, when a downward pullback is over and a medium-term bullish trend recommences.
EUR/JPY: Technical Analysis
The pair has bounced from the 111.55 lows achieved last night. The bounce could go higher, reaching the upper channel and trend-line of the move down at approximately 112.60. This target also coincides neatly with the point at which the first leg off the lows would equal the second leg. Currently on the 1 minute chart there is an extended sideways rectangular consolidation with ceiling at 112.28 and floor at 112.14. Depending on the direction of the breakout from that the pair will either achieve the earlier upside target or fall back down to support at 111.80.
USD/CAD: Technical Analysis
The move up from the lows made on the 14th October has completed a text-book zig-zag pattern. The exchange rate has now fallen off the highs and is going down. It is likely it will fall further, with some backing and filling along the way, at least until the trend-line made from the lows of the consolidation zone formed since the beginning of May is reached, at around 1.2325. The 50% retracement of the rally may be another place where the fall finds support, at 1.01750.
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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