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Forex4you Technical Analysis 28/10/10

EUR/USD: Technical Analysis

The pair continued its downward movement, support 1.3780 was breached, but further descending ended just with level 1.3730/40. The "bulls" brought the price back above level 1.3780, so the trading is currently carried on at level 1.3830/40. Indicators show attempts to take the price back to the uptrend on a mid-term level. Level 1.3900/10 is likely to be tested in the nearest future. If this barrier is breached, we'll be expecting the price to test level 1.4000/40 for its strength. Yet, until it happened, we should probabgly consider one more scenario, which is a reversal downwards and a possible fall to level 1.3660and then to 1.3610/00.

GBP/USD: Technical Analysis

The exchange rate has rallied up to trend-line resistance drawn from the 15th October highs. If it decisively breaks through this then it will probably reach the 1.5900 highs and then perhaps 1.6000 after that. If it fails and pushes back down then it might be expected to find support at 1.5755 initially. Like EUR/USD there might be a diamond top on the 4-hour chart - beginning on the 27th of September and peaking on the 15th October, but this one is less text book in form. A decisive break down through the bottom of the diamond at the aforementioned support lows of 1.5755 would constitute a downside breakout with an eventual objective of 1.5230.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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