Forex4you Technical Analysis 19/10/10
EUR/USD: Technical Analysis
Assumptions that the “bears» would reach support level 1.3780/50 didn’t realize, because level 1.3830 didn’t let the pair pass further. As a result of an upward pullback the trading went to level 1.4000 and has recently descended a bit to 1.3930/40. Indicators’ readings are rather unclear, but seems like they are more likely to show further downward movement. The bearish attempt to fix below the breached uptrend channel line (blue line) gives more evidence to the assumption of a price fall. Nevertheless, the situation should be considered unclear for now, so now action should be taken. There’s still a chance that there will be attempts to return to the uptrend channel. The fall below 1.3830 will indicate further descending to 1.3780 and then levels 1.3660, 1.3610. If the price grows above 1.4040, this scenario will be cancelled. We’ll get the final confirmation when resistance 1.4080 is breached.
GBP/USD: Technical Analysis
The exchange rate has rolled over from the 15th October highs and fallen initially to support at 1.5840 before correcting a little and then falling further to the current lows in the 1.5790s. The move down is strong and looks like it will continue. If it is a zig-zag then the second leg will probably equal the first, yielding a target of 1.5644. This is also close to the monthly pivot at 1.5650 and the point where price might meet the trend-line of the whole move up from the June lows at around the 1.5650s. This should provide an important support shelf if price gets down that far. For a nearer term objective, however, use the line of old lows at 1.5725.
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.
Assumptions that the “bears» would reach support level 1.3780/50 didn’t realize, because level 1.3830 didn’t let the pair pass further. As a result of an upward pullback the trading went to level 1.4000 and has recently descended a bit to 1.3930/40. Indicators’ readings are rather unclear, but seems like they are more likely to show further downward movement. The bearish attempt to fix below the breached uptrend channel line (blue line) gives more evidence to the assumption of a price fall. Nevertheless, the situation should be considered unclear for now, so now action should be taken. There’s still a chance that there will be attempts to return to the uptrend channel. The fall below 1.3830 will indicate further descending to 1.3780 and then levels 1.3660, 1.3610. If the price grows above 1.4040, this scenario will be cancelled. We’ll get the final confirmation when resistance 1.4080 is breached.
GBP/USD: Technical Analysis
The exchange rate has rolled over from the 15th October highs and fallen initially to support at 1.5840 before correcting a little and then falling further to the current lows in the 1.5790s. The move down is strong and looks like it will continue. If it is a zig-zag then the second leg will probably equal the first, yielding a target of 1.5644. This is also close to the monthly pivot at 1.5650 and the point where price might meet the trend-line of the whole move up from the June lows at around the 1.5650s. This should provide an important support shelf if price gets down that far. For a nearer term objective, however, use the line of old lows at 1.5725.
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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