Forex4you Technical Analysis 30 June 2011

EUR/USD: Technical Analysis

Forecasts confirmed and the pair continued its growth. The price breached 1.4430/40 resistance line, confirming the "bullish" strong potential. At the moment trading is being carried out at 1.4510/00 level. If the attempts to fix the price above 1.4500 line turn out successful, we'll be expecting another ascension with targets seen at 1.4600/20 and 1.4700 levels. Indicators are "bullish" as well, saying in favor of the above mentioned scenario. On the other hand, it's worth taking into account significant 1.4560/70 resistance, which is currently in the way - the level may become a reason for cardinal changes in the market and initiate a reversal. The indication for it would be decline below 1.4430/40 support line.

GBP/USD: Technical analysis

The price recommenced its growth and reached 1.6100/10 resistance line, mentioned earlier as a possible maximum level for the consolidation range. At the same time, this barrier on the way up, 1.6100/20/40 range (yellow segment) was also mentioned before as the key barrier that may initiate a transition to a medium-term uptrend. Indicators are also turned up, suggesting further growth. Therefore we expect the price to breach currently tested level and proceed to the first resistance at 1.6220/30 level or may be even rise to 1.6320. However, after support 1.6100 was breached, it turned into a strong resistance level, which can push the trades back on the "bearish" track. Decline below 1.6050/40 level would indicate a downward movement, initially towards 1.5940/20 support line.

Analysis by: Joaquin Monfort

                     Forex4you analyst
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