Forex4you Technical Analysis 23/07/10

EUR/USD: technical analysis

Prices have rallied up after yesterday’s decline. They are in the process of breaking out of the trend channel drawn down from Tuesday’s highs. They may consolidate shortly before a further rally. The level of resistance at 1.2880 could be a reasonable target for the advance.

GBP/USD: technical analysis

Prices for this pair have reached the upper line of the channel down since the highs last Thursday. Right now they have encountered considerable resistance from the R1 monthly pivot and the 50% retracement from the ’09 bull market. It is possible prices may fall back into the channel reaching perhaps 1.5200 or the 50 Day MA at 1.5165, but the strength of the move up this morning suggests this rally has further to go. If an upside breakout occurs prices could approach the old highs at around 1.5425.

USD/JPY: technical analysis

After it tested the upper resistance level 87.35/50T and trading moved down to support level 86.30, the price is now consolidating around a relatively wide range. As mentioned in the previous analysis, in case of the next downfall the price is likely to reach a new minimum at 86.00/85.90, because of a continuing downtrend. Indicators don’t contradict these assumptions. At the same time MACD divergence warns of a big pullback upwards or even reverse. It can obviously happen after it tests of new minimums.

Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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