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Forex4you Technical Analysis 18/10/10

EUR/USD: Technical Analysis

The assumptions of the last comment, that resistance level 1.4150/60 is be a decisive factor in the present situation confirm. The “bulls” didn’t manage to breach this barrier, so the price fell and the trading is carried on at levels 1.3840/30. Indicators are changing their readings and showing further descent. The price is likely to reach target levels 1.3780/50 very soon. If the present level is breached, these assumptions will be even a higher possibility and support levels 1.3660 and 1.3610 will be the next targets on the way.

EUR/JPY: Technical Analysis

The exchange rate has rolled over from its highs at 114.70 and has started quite a strong wave down which I would expect to continue lower. The Average True Range is also low and this is often the case before strong bearish moves. The initial wave down has now reached support at the trend-line of the whole rally up from the August lows. This is quite a strong level of support and from here I see the pair rising again in a correction. The rise has already begun and initially I see it reaching resistance at an old down-sloping trend-line at 113.30. Then there is a possibility it could rally further up to 113.80. Alternatively it could begin a new wave down from 113.30. Whenever it starts moving down again the next target will probably be the monthly pivot at 111.29.

GBP/USD: Technical Analysis

The bulls didn’t manage to breach resistance level 1.6100/05, so the price currently resides at level 1.5860, much lower then the previous support level 1.5970/80. Indicators prefer the “bearish” moods, but whether this scenario takes place or not depends on the currently tested level, which matches with the uptrend lines (blue lines). If it’s breached, the next target would be strong support at level 1.5780, and then 1.5660/70. Reversal upwards, above 1.5970/50 will indicate the cancellation of a downtrend and a reversal to growth, at first to level 1.6100 again.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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