Forex4you Technical Analysis 09 June 2011

EUR/USD: Technical Analysis

The price fell to level 1.4560/70, met a strong support there and pulled back to 1.4630/40 level. Indicators have turned down, but it's worth considering that SS is currently being overbought, which gives reasons to be cautious in this instrument and not to make final conclusions in favor of the bearish trend. Moreover, the price still resides within the uptrend (red lines) channel, so the "bulls" still have their leading positions in the market. In this regard, the price has all chances to reach target at level 1.4860/70 or even reverse from a strong resistance at 1.4790/70. The first signal for reversal would be 1.4560 support breakout - the level is now very strong, since it matches with the uptrend (red) line.  Should the price decline and hold below 1.4460/30 support level, it'd be the final indication for a medium-term bearish trend.

GBP/USD: Technical Analysis

Previous forecasts, anticipating further bullish development should have been correct. The price recommenced its growth after a decline and is currently making another attempt to breach 1.6450/60 resistance line, where trading is now being carried out. Indicators have slightly changed their readings and now seem to be more in favor of growth, but they are still rather neutral, which makes the situation rather unclear. If the price breaches and holds above 1.6450/60 level, it will indicate the 'bullish' victory and suggest further growth to 1.6680/90 level. Support 1.6320 breakout, on the other hand, will change market sentiment to "bearish" and we'll be expecting trades to fall down to 1.6230/40 and then to 1.6100/10 level.  Today's BoE interest rate decision gives reasons to be cautious, since it may push the trades either way.

Analysis by: Arkady Nagiev    

                    Forex4you analyst

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