Forex4you Technical Analysis

[forex4you]

Forex4you Technical Analysis 28 January 2011

EUR/USD: Technical Analysis

Little changed in the structure, the price is consolidating in a sideways range, although it did manage to test a new local maximum at level 1.3755, which gives more reasons to expect the "bulls" to continue their trend and even reach target 1.3780/1.3800. Indicators show, that the "bullish" potential is weakening, suggesting a large-scale pullback downwards, as soon as the above mentioned level is tested. A decline below support level 1.3440/00 will be the first sign for the "bearish" trend. A serious signal to the change of moods would be support 1.3540/00 breakout. If resistance 1.3780/1.3800 is breached and the price holds above, we'll be expecting a stop at level 1.3860/50.

GBP/USD: Technical Analysis

Recent forecast that the "bulls" may not be able to rise above the range 1.5960-1.5930 turned out to be correct. The price failed to hold above this barrier, so it pulled back lower. The price met support at the uptrend channel line (blue lines) and it's currently consolidating at 1.5880/90. Indicators are turned up, so the "bullish" trend is likely to continue. Besides, the "bearish" attempts to breach the uptrend channel line fail, which makes further up trend even more of a possibility. To be sure, that growth to 1.6270/60 will take place, resistance 1.6060/70 should be breached first. But to make it happen, the price has to rise above 1.5960-1.5930. If the price breaches and holds below support 1.5750/40, we'll be expecting a down trend to commence.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 31 January 2011

EUR/USD: Technical Analysis

This pair fell quite heavily after touching the major trend line of the June rally last week. In Elliot wave terms the fall is probably a 4th wave of the larger wave up from the lows reached on the 17th Jan. This suggests that when it has completed, wave 5 will rally back up again to either the 1.3760 highs or higher to around 1.3800. Before then, however, there is good possibility that this move down will continue a little, to either match or even fall below the recent 1.3569 lows, targeting the 1.3550s eventually.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 1st Feb 2011

EUR/USD: Technical Analysis

The "bullish" trend became dominating and the price rose to 1.3700. It's currently making attempts to hold at these levels. Such turn of events has been mentioned previously as a signal to the "bullish" trend, so there reasons to expect growth to targets above resistance level 1.3780/1.3800. Indicators are turning up, suggesting that that the "bulls" will eventually succeed. Growth to 1.3900/1.3990 is quite a possibility, although it's worth taking into account the strength of resistance at level 1.3800/1.3780.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 2nd Feb 2011

EUR/USD: Technical Analysis

Previous forecast turned out to be correct - the trades raised above 1.3800 and the price currently resides at 1.3830/40. Indicators are turned up, suggesting to expect further up trend. However, MACD divergence and strong resistance, that stands at 1.3900/10, give reasons to consider a serious pullback from 1.3900 in the near future. A pullback from higher resistance levels is also a possibility, but not higher than 1.3990. A plunge below 1.3500/30 will be the first serious signal to cardinal changes in the market.

GBP/USD: Technical analysis

Resistance 1.6150/60 held back growth just for some time and then the price went up. It's currently consolidating at 1.6200/10. The "bulls" keep their leading positions in the market and previously mentioned target at level 1.6260 is very close. Indicators are "bullish", which gives reasons to expect this level to be tested even today. However, the trading picture says in favor of a medium-term growth, and ascension from level 1.6260 should be considered as a correction, probably to the price range around 1.6040/50. Decline below support 1.5980/90 will be a signal to a possible reversal in the pair.

USD/JPY: Technical analysis

Previous forecast that level 81.30 might initiate a price stop seems to have benn correct. The price hasn't breached this support, so it's currently consolidating at level 81.40/30. Indicators prefer "the bearish" trend, giving reasons to expect another fresh local minimum tests at 80.90/95. However, it will be a possibility only in case tested support is breached. If the "bears" fail to breach it in the near future, the price will most likely pullback to resistance at 82.00/81.90 . Growth above level 82.40/20 will indicate the change of sentiment.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 3rd Feb 2011

EUR/USD: Technical Analysis

This pair has fallen back down to support from the major trendline from the June ‘10 lows, as anticipated. From here it could launch another rally with a target just short of the recent highs at 1.3850. Alternatively there is a possibility of a break down – possibly even a collapse. If so then the next substantial support grouping at 1.3650 could be expected to at least stall any bear moves.

GBP/USD: Technical analysis

The price reached its target at level 1.6260/70, where it currently resides. However, the indicators are still being "bullish", suggesting to expect further growth. The market may be tempted to test the trend line(green line) at level 1.6330, which links two maximums from August and November 2009. However, strong resistance stands in the way at leve1.6270/60, which gives reasons to anticipate the next pull back from this particular level. If, when declining, the price falls below 1.6060, it’ll give more grounds to expect another decline to 1.5750. At the same time, even if this forecast proves to be correct, further "bullish" trend in a medium-term will still be a possibility. Growth will then be over, when the price holds below 1.5750.

EUR/JPY: Technical analysis

EUR/JPY is in a wedge-like ending diagonal pattern which looks almost complete. I count 5 waves within its borders so it could be about to break. Any move down would be expected to reach support at 111.75 initially, from the 200 day MA, and then perhaps at 111.25 from the major trendline off the November ’10 highs. There is also still a possibility of a final wave higher to the upper border of the wedge at 113.10 and even an upside breakout with resistance at 114.15 as a price target.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 4 Feb 2011

EUR/USD: Technical Analysis

EUR/USD fell steeply yesterday, breaking through the trendline from the Jan lows until it reached a low of 1.3608. From there it has consolidated – probably in an Elliot wave 4 - and it may correct a little further before the downtrend resumes. Longer term wave patterns suggest the possibility of a major bear move evolving and momentum has given a sell signal. The direction of the move out of the consolidation range will dictate the price action to follow – if up wave 4 may have further to go to perhaps as high as 1.3735 – if lower then probably to 1.3555 initially and then the 1.34s.

Analysis by: Forex4you.com written by 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.

 

[mrjohn]

The market will continue to decline

 

[forex4you]

Forex4you Technical Analysis 07 Feb 2011

EUR/USD: Technical Analysis

The forecast turned out to be correct, so decline continued. The price met support around level 1.3530/00 and it's currently pulling back upwards. The trading is carried out at 1.3600/10. Indicators are "bearish", they are turned down, which gives reasons to anticipate further decline. However, a strong cluster of supports stands in the way at level 1.3530/00 and lower, being a serious challenge for the "bears". Therefore, range trading within 1.3700-1.3530 is most likely in the near future. However, the outlook remains the same – if the trades fall below 1.3500 we'll be expecting serious changes in the market and then, if the trading holds below support 1.3450/60, the "bearish" trend will become dominating. Reversal upwards, above level 1.3780 would indicate a reversal to the up trend with the first stop at 1.3900/10.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 08 Feb 2011

EUR/USD: Technical Analysis

Level 1.3530/00 proved to be a strong support - the price failed to breach this barrier again and pulled back upwards. Trading is currently carried out at 1.3610\20. Indicators are changing their reading, although it's clearly seen only in R%, so it's too early to make any final conclusions - the situation is uncertain. Range trading within 1.3700-1.3530 may continue. Decline below 1.3500, i.e corrected up trend channel line (blue lines) breakout indicate the change of sentiment in the market. If the price holds below support at level 1.3450/60, the "bearish" trend will be considered dominating. Reversal up, above level 1.3780 suggests reversal to growth with the next stop at level 1.3900/10.

GBP/USD: Technical analysis

A reversal in the pair didn't bring any significant changes to the structure and the price had been consolidating within narrow ranges for quite a long time. It didn't breach any strong support/resistance levels, mentioned previously as the target ones, so the prior forecast applies - trend (green) line, that links August and November 2009 maximums, is likely to be tested at level 1.6330/20 in the near future. Decline below 1.6060 will be the first signal to the change of moods in the market. Fixation above 1.5750 will indicate that the growth is over. It's worth noting, by the way, that the price is currently making attempts to breach the up trend channel line (blue lines) and indicators are turning more to "bearish", which means that a downtrend scenario may eventually win.

EUR/JPY: Technical analysis

This pair has reached the top of the down-sloping channel drawn from the January highs at 112.20 and rolled over, striking lower today. It is possible the corrective rally is over and we may be beginning a new Elliot wave down which could reach at least to the lower channel line at approximately 110.30; although the monthly pivot at 111.05 may also impede its descent.

Analysis by: Forex4you.com written by 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.

 

[forex4you]

Forex4you Technical Analysis 09 Feb 2011

EUR/USD: Technical Analysis

The corrective rally which began on the 7th Feb is slowing down. After touching the 1.3680 highs and the 50% Fibonacci retracement of the preceding move the rate has fallen and is now going sideways. It will probably fall further and if it passes below the previous trough low at 1.3611 that will be a strong bearish signal as the rising sequence of peaks and troughs will have been broken and replaced by a falling sequence instead. Alternatively, if the rate rallies above 1.3685, that could be a bullish sign and might open the way to retesting the 1.40 highs and the monthly pivot.

GBP/USD: Technical analysis

The price breached the trend line of the upper channel (blue lines) and it's currently testing an auxiliary line (blue dashed-line), which matches with the key support level 1.6060. Indicators turned even more "bearish", which gives reasons to expect a decline. However, until the price holds below 1.6060, the "bulls" still have good chances to recommence their trend with the target at 1.6330/20, mentioned in the previous forecast. Decline below level 1.6060 will be the indication of a stronger "bearish" sentiment. Fixation below level 1.5750 will be a sign that medium-term growth is over.

USD/JPY: Technical analysis

The "bulls" failed to breach support level 82.50/60 at first. Then, after a short correction, they made another attempt to test and breach this level, and it turned out to be successful. At the moment they are trying to hold above this level. The price is testing corrected trend line (blue dashed-line) of a downtrend channel at level 82.60. Previous forecast that the up trend has a big potential are proving to be correct. Indicators are "bullish", suggesting to expect the next resistance test at level 83.00/10 very soon. Ascension to level 84.00/10 is a possibility, albeit there are strong resistance levels on the way, so it's worth being wary and consider a sideways consolidation scenario.

Analysis by: Forex4you.com written by 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.