Forex4you Technical Analysis 04/10/10
EUR/USD: Technical Analysis
After having spent most of last week rallying the EUR/USD pair began falling this morning. The pair may continue to drop to support at 1.3650 initially. After that there could be a recovery rally. It is possible the market may zig-zag sideways for a while thereafter oscillating between the 1.38 highs and the 1.36 lows. This could be the start of a wave 4 correction of the rally from the August lows. Given wave 2 was quite deep we might expect this wave 4 to be relatively ‘shallow’. If the current bearish move strengthens, however, then it could come down to 1.3550. Eventually there is still probably another move up – wave 5 – before the whole leg up from August completes.
GBP/USD: Technical Analysis
The reversal in the state of events indicated, that the “bullish” potential significantly weakened, and resistance level 1.5850 turned out to be a strong barrier. The price is pulling back downwards, making attempts to breach uptrend channel line (blue lines). The trading is being carried on at 1.5750/60. Indicators are changing to the “bearish”. But to make the “bearish” trend dominating, support level 1.5730/40 should be breached – it’s now matching with the additional channel trend line (blue dashed line). Price fixation below is also necessary to indicate the strength of the “bearish” moods. If it happens, the price will most probably drop to 1.5700 at first, and then to 1.5620/00. Nevertheless, the trading is still within the uptrend channel and the “bullish” moods are dominating, so we should probably expect further growth of the price. Level 1.5920 breakout will initiate ascending to 1.5960/70 and even 1.6010/20.
EUR/JPY: Technical Analysis
This pair has fallen from the 115 highs reached at the end of last week. It is possible this could be the beginning of a significant correction - an Elliot wave 4 - of whole the move up from the August lows. Given the strength and depth of the move so far it is likely it will continue further, with an initial target at 112.90, or if lower to support at 111.30, where the monthly pivot is situated. The correction could last quite a while and go in a sideways direction before the uptrend resumes. Once it does, wave 5 should match or even surpass the 115.27 highs.
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.
After having spent most of last week rallying the EUR/USD pair began falling this morning. The pair may continue to drop to support at 1.3650 initially. After that there could be a recovery rally. It is possible the market may zig-zag sideways for a while thereafter oscillating between the 1.38 highs and the 1.36 lows. This could be the start of a wave 4 correction of the rally from the August lows. Given wave 2 was quite deep we might expect this wave 4 to be relatively ‘shallow’. If the current bearish move strengthens, however, then it could come down to 1.3550. Eventually there is still probably another move up – wave 5 – before the whole leg up from August completes.
GBP/USD: Technical Analysis
The reversal in the state of events indicated, that the “bullish” potential significantly weakened, and resistance level 1.5850 turned out to be a strong barrier. The price is pulling back downwards, making attempts to breach uptrend channel line (blue lines). The trading is being carried on at 1.5750/60. Indicators are changing to the “bearish”. But to make the “bearish” trend dominating, support level 1.5730/40 should be breached – it’s now matching with the additional channel trend line (blue dashed line). Price fixation below is also necessary to indicate the strength of the “bearish” moods. If it happens, the price will most probably drop to 1.5700 at first, and then to 1.5620/00. Nevertheless, the trading is still within the uptrend channel and the “bullish” moods are dominating, so we should probably expect further growth of the price. Level 1.5920 breakout will initiate ascending to 1.5960/70 and even 1.6010/20.
EUR/JPY: Technical Analysis
This pair has fallen from the 115 highs reached at the end of last week. It is possible this could be the beginning of a significant correction - an Elliot wave 4 - of whole the move up from the August lows. Given the strength and depth of the move so far it is likely it will continue further, with an initial target at 112.90, or if lower to support at 111.30, where the monthly pivot is situated. The correction could last quite a while and go in a sideways direction before the uptrend resumes. Once it does, wave 5 should match or even surpass the 115.27 highs.
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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