Forex4you Technical Analysis 08/10/10
EUR/USD: Technical Analysis
This pair made highs of 1.4028 yesterday before rolling over; the whole day a doji candlestick. As I mentioned before the 1.4000 level is key because it is where the ‘A’ leg of the rise from the June lows will equal the ‘C’ leg and this is the most common relationship on completion. It is also the level of the R1 monthly pivot thus compounding the resistance there. We would expect that there would be some sort of correction from here. On the hourly chart the small move down off the highs looks incomplete and it is probable it will bring the exchange rate to between 1.3850 and 1.3830 where it will hit support from the recently broken channel line of the whole June rally. A continuation up however, would be likely to match the 1.4028 highs.
USD/CHF: Technical Analysis
USD/CHF has entered unchartered territory and we have made new all-time-lows. But then yesterday posted a bullish key reversal candle! So now there is a possibility of some upside. Initially 0.9750 is a good target as it is where the exchange rate will encounter resistance from the old trend-line drawn from the June highs and from the previous consolidation phase. If there is more downside I would initially expect it to reach 0.9550 and then perhaps go all the way down to the 93.50s where there are a bunch of targets and support levels. These include the target where the two prongs of the massive decline from 1.1600 would be of roughly equal length; the S2 monthly pivot resides and where the exchange rate would encounter support from a channel line linking the ’95 and ’08 lows.
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.
This pair made highs of 1.4028 yesterday before rolling over; the whole day a doji candlestick. As I mentioned before the 1.4000 level is key because it is where the ‘A’ leg of the rise from the June lows will equal the ‘C’ leg and this is the most common relationship on completion. It is also the level of the R1 monthly pivot thus compounding the resistance there. We would expect that there would be some sort of correction from here. On the hourly chart the small move down off the highs looks incomplete and it is probable it will bring the exchange rate to between 1.3850 and 1.3830 where it will hit support from the recently broken channel line of the whole June rally. A continuation up however, would be likely to match the 1.4028 highs.
USD/CHF: Technical Analysis
USD/CHF has entered unchartered territory and we have made new all-time-lows. But then yesterday posted a bullish key reversal candle! So now there is a possibility of some upside. Initially 0.9750 is a good target as it is where the exchange rate will encounter resistance from the old trend-line drawn from the June highs and from the previous consolidation phase. If there is more downside I would initially expect it to reach 0.9550 and then perhaps go all the way down to the 93.50s where there are a bunch of targets and support levels. These include the target where the two prongs of the massive decline from 1.1600 would be of roughly equal length; the S2 monthly pivot resides and where the exchange rate would encounter support from a channel line linking the ’95 and ’08 lows.
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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