Forex4you Technical Analysis 11 January 2011
EUR/USD: Technical Analysis
The EUR/USD pair bottomed and bounced back up to highs of 1.2990 yesterday but has started falling again this morning, after encountering resistance from an old trend-line from the November highs. The MACD is showing that yesterday’s correction could be an Elliot wave 4 of the wave down from the 4th January highs – with the wave 5th still to come. This wave could target 1.2850 initially, and then support at the 1.2750 level from the monthly pivot and the 61.8% Fibonacci level.
EUR/JPY: Technical Analysis
This pair has rebounded from the lows reached yesterday in what is probably an Elliot wave 4th wave of the decline from the 4th January highs. The next move will probably be a wave 5 down, targeting just below the recent lows at 106.60 perhaps. However the fall could be stunted by some larger cyclical buying pressure. This is because a larger wave down which began in October ’10 is finishing and a correction is on the cards. Therefore caution should be exercised in adopting any short positions. After the wave 5 down bottoms, there may be a fairly strong counter-trend move back up – perhaps to the 108.50 resistance mark.
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 EUR/USD pair bottomed and bounced back up to highs of 1.2990 yesterday but has started falling again this morning, after encountering resistance from an old trend-line from the November highs. The MACD is showing that yesterday’s correction could be an Elliot wave 4 of the wave down from the 4th January highs – with the wave 5th still to come. This wave could target 1.2850 initially, and then support at the 1.2750 level from the monthly pivot and the 61.8% Fibonacci level.
EUR/JPY: Technical Analysis
This pair has rebounded from the lows reached yesterday in what is probably an Elliot wave 4th wave of the decline from the 4th January highs. The next move will probably be a wave 5 down, targeting just below the recent lows at 106.60 perhaps. However the fall could be stunted by some larger cyclical buying pressure. This is because a larger wave down which began in October ’10 is finishing and a correction is on the cards. Therefore caution should be exercised in adopting any short positions. After the wave 5 down bottoms, there may be a fairly strong counter-trend move back up – perhaps to the 108.50 resistance mark.
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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