Forex4you Technical Analysis 25/10/10
EUR/USD: Technical Analysis
The move up which began on the 20th has probably reached an end and this morning’s correction could continue a little lower. It is quite possible it will reach support at 1.4000 at the least. There is even a chance it will continue going down even lower, reaching the 1.37 lows if it is still a part of the consolidation which began on the 10th and has lead to a more or less sideways market since. If, on the other hand, the rally which began on the 20th is part of a larger move up then the exchange rate will probably turn on the 1.4000 lows and resume the march higher.
GBP/USD: Technical Analysis
The price is trapped between the two strong levels, mentioned in the previous comment - levels 1.5780 and 1.5665. The first doesn’t let the price grow, the second prevents it from further descending. Indicators are unclear –MACD divergence suggests growth on the one hand, SS and R% downward direction indicate possible descending on the other. So the situation is vague, and it now depends on the price itself - support level 1.5665/50 breakout opens the way to levels 1.5600 and 1.5520/10/00. Growth above 1.5780/90 together with the price fixation, suggests levels 1 .5920 and 1.6000 to be the next.
USD/JPY: Technical Analysis
Attempt to breach the channel trend line downwards (green lines) and fix above failed. The price continued to descend and is currently testing support level 80.50. Expectations of a possible stop at level 80.70 failed and the market obviously confirms the assumptions of the previous comment that a new historic minimum at 79.75 is likely to be tested very soon. Indicators say in favor of this event, though MACD divergence suggests the upcoming completion of a downtrend. So, we should be aware of a sudden pullback upwards right after level 79.70/50 is tested. It’s also worth paying attention to support 80.10/80.00, wherefrom a quick bounce upwards is also a possibility.
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.
The move up which began on the 20th has probably reached an end and this morning’s correction could continue a little lower. It is quite possible it will reach support at 1.4000 at the least. There is even a chance it will continue going down even lower, reaching the 1.37 lows if it is still a part of the consolidation which began on the 10th and has lead to a more or less sideways market since. If, on the other hand, the rally which began on the 20th is part of a larger move up then the exchange rate will probably turn on the 1.4000 lows and resume the march higher.
GBP/USD: Technical Analysis
The price is trapped between the two strong levels, mentioned in the previous comment - levels 1.5780 and 1.5665. The first doesn’t let the price grow, the second prevents it from further descending. Indicators are unclear –MACD divergence suggests growth on the one hand, SS and R% downward direction indicate possible descending on the other. So the situation is vague, and it now depends on the price itself - support level 1.5665/50 breakout opens the way to levels 1.5600 and 1.5520/10/00. Growth above 1.5780/90 together with the price fixation, suggests levels 1 .5920 and 1.6000 to be the next.
USD/JPY: Technical Analysis
Attempt to breach the channel trend line downwards (green lines) and fix above failed. The price continued to descend and is currently testing support level 80.50. Expectations of a possible stop at level 80.70 failed and the market obviously confirms the assumptions of the previous comment that a new historic minimum at 79.75 is likely to be tested very soon. Indicators say in favor of this event, though MACD divergence suggests the upcoming completion of a downtrend. So, we should be aware of a sudden pullback upwards right after level 79.70/50 is tested. It’s also worth paying attention to support 80.10/80.00, wherefrom a quick bounce upwards is also a possibility.
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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