Forex4you Technical Analysis 06/10/10
EUR/JPY: Technical Analysis
This pair has now reached highs in the 115s which also happens to be the point and figure target from the August lows. It seems likely that from here some sort of correction may develop or a consolidation range. I think the odds are slightly more in favour of a sell off - first to near-term support at 114.60 and then if stronger, to the lows in the 113.90s. The drop from here could be quite sharp given the persistently low ADX which often precedes a volatile move. If the uptrend continues, however, then a rally could reach the old highs at 115.35 initially before going higher to the R1 monthly pivot situated at 116.75.
EUR/USD: Technical Analysis
The “bearish” potential turned out to be stronger, than it had been expected, so they did manage to continue their trend. Resistance 1.3820 breakout indicates a possibility for further ascending to 1.3950/60, the price currently resides at 1.3870/60. The situation with the indicators hasn’t changed - indicators still prefer growth on the one hand, with MACD divergence indicating the opposite on the other. So, resistance level 1.3900/20, which is currently on the way is a real threat for the large-scale pullback downwards. Nevertheless, the above mentioned targets are still likely to be tested in the nearest time. Only support level 1.3660/10 breakout will indicate significant changes in the market.
GBP/USD: Technical Analysis
All attempts to breach level 1.5920 are yet unsuccessful, the price remains around this level, which means that there will be further attempts to a rise. Indicators prefer growth on the one hand and MACD divergence indicates the opposite on the other. Such a picture supports the assumptions of an upcoming large-scale correction, but also leaves a high possibility for testing a new local maximum in this pair. The assumptions of the previous comment are still relevant – level 1.5920 breakout will be followed by the raise to 1.5960/70, and even 1.6010/20. Support 1.5730/40 breakout (blue dashed line, additional uptrend channel line) will indicate that the “bearish” moods are ruling the market. Short-term pullback downwards to support range 1.5800/30 with the following reversal upwards is also a possibility. This type of movement is likely for a graphic model, called the “wedge”.
AUD/USD: Technical Analysis
This pair has rallied up to near the old ’09 highs. The correction earlier this week appears incomplete and it could go lower if this surprise rally rolls over. ADX was in the 60s and is still relatively high at 48.32, which seems to back up the suggestion this rally will falter given it indicates the probability of less, not more directional movement. It is quite possible the exchange rate may consolidate within a zone with the bottom at 0.9720 and the top at the recent 0.9780 highs. A stronger correction, however, might reach 0.9635. Eventually there will probably be another rally to perhaps the same level as the old highs at 0.9850, or slightly higher in the 0.99s given the next monthly pivot is situated there and the next point and figure target is at 0.9900 (the first target at 0.8800 having already been surpassed).
USD/JPY: Technical Analysis
Hopes that investors would be very cautious of BoJ interventions in case of level 83.00 breakout are not coming true. The price went down below this support and is now trying to fix at the current levels. Indicators are “bearish” again, so further downward movement is a high-possibility. Falldown below 82.85/80 will trigger the dollar’s sell off and in this happens, the historical minimum in this pair, level 79.75 will tested in the nearest future. At the same time, there is a psychological factor, which leaves anxieties of possible intervention at a high level, holding back the market. Support 82.85 is not likely to be breached that easily, so there’s a possibility of a pullback from this level.
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 has now reached highs in the 115s which also happens to be the point and figure target from the August lows. It seems likely that from here some sort of correction may develop or a consolidation range. I think the odds are slightly more in favour of a sell off - first to near-term support at 114.60 and then if stronger, to the lows in the 113.90s. The drop from here could be quite sharp given the persistently low ADX which often precedes a volatile move. If the uptrend continues, however, then a rally could reach the old highs at 115.35 initially before going higher to the R1 monthly pivot situated at 116.75.
EUR/USD: Technical Analysis
The “bearish” potential turned out to be stronger, than it had been expected, so they did manage to continue their trend. Resistance 1.3820 breakout indicates a possibility for further ascending to 1.3950/60, the price currently resides at 1.3870/60. The situation with the indicators hasn’t changed - indicators still prefer growth on the one hand, with MACD divergence indicating the opposite on the other. So, resistance level 1.3900/20, which is currently on the way is a real threat for the large-scale pullback downwards. Nevertheless, the above mentioned targets are still likely to be tested in the nearest time. Only support level 1.3660/10 breakout will indicate significant changes in the market.
GBP/USD: Technical Analysis
All attempts to breach level 1.5920 are yet unsuccessful, the price remains around this level, which means that there will be further attempts to a rise. Indicators prefer growth on the one hand and MACD divergence indicates the opposite on the other. Such a picture supports the assumptions of an upcoming large-scale correction, but also leaves a high possibility for testing a new local maximum in this pair. The assumptions of the previous comment are still relevant – level 1.5920 breakout will be followed by the raise to 1.5960/70, and even 1.6010/20. Support 1.5730/40 breakout (blue dashed line, additional uptrend channel line) will indicate that the “bearish” moods are ruling the market. Short-term pullback downwards to support range 1.5800/30 with the following reversal upwards is also a possibility. This type of movement is likely for a graphic model, called the “wedge”.
AUD/USD: Technical Analysis
This pair has rallied up to near the old ’09 highs. The correction earlier this week appears incomplete and it could go lower if this surprise rally rolls over. ADX was in the 60s and is still relatively high at 48.32, which seems to back up the suggestion this rally will falter given it indicates the probability of less, not more directional movement. It is quite possible the exchange rate may consolidate within a zone with the bottom at 0.9720 and the top at the recent 0.9780 highs. A stronger correction, however, might reach 0.9635. Eventually there will probably be another rally to perhaps the same level as the old highs at 0.9850, or slightly higher in the 0.99s given the next monthly pivot is situated there and the next point and figure target is at 0.9900 (the first target at 0.8800 having already been surpassed).
USD/JPY: Technical Analysis
Hopes that investors would be very cautious of BoJ interventions in case of level 83.00 breakout are not coming true. The price went down below this support and is now trying to fix at the current levels. Indicators are “bearish” again, so further downward movement is a high-possibility. Falldown below 82.85/80 will trigger the dollar’s sell off and in this happens, the historical minimum in this pair, level 79.75 will tested in the nearest future. At the same time, there is a psychological factor, which leaves anxieties of possible intervention at a high level, holding back the market. Support 82.85 is not likely to be breached that easily, so there’s a possibility of a pullback from this level.
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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