Forex4you Technical Analysis 23/08/10

EUR/USD: Technical Analysis

Support 1.2730 was breached and the price fixed below, which can be considered as an evidence for the “bearish” scenario to start. Having tested levels 1.2680/90, the trading is currently carried on at 1.2700/10. Indicators are more inclined to a “bearish trend”, making a further downward movement a high-possibility. Supports 1.2620/30 and 1.2540 are likely to be tested soon. A rise and fixation above 1.2820 are seen as the early signs to reversal upwards, resistance 1.2870/1.2900 will be the final signal for it.

GBP/USD: Technical Analysis

Despite persistent attempts for level 1.5470 breakout, the support withstood the “bearish” attacks and initiated a pullback upwards to 1.5570/80, where the price still resides. Level 1.5570/80 is matching with an uptrend channel line (blue lines), which was breached yesterday. The level is now being tested as a resistance. If the price doesn’t go back to the channel sector and resumes its downward movement, it should be considered as a signal to a sell off. Downtrend scenario will be dominating and the first serious stop