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Forex4you Technical Analysis 02/11/10

EUR/USD: Technical Analysis

Support 1.3940/20 was breached, but the price only descended to level 1.3860, which became a starting point for the growth reversal. The trading is currently carried on at level 1.3980, thus returning to yesterday's maximums. Indicators are "bullish" again, suggesting further possible growth. At the same time there is a strong resistance at level 1.4000/10 on the way, which has all chances to bring the price back downwards. In case this barrier is breached, level 1.4040/50 will be the next to be tested, growth to higher levels is not likely in the nearest future. Reversal downwards and a all below 1.3940/20 suggests level 1.3860 testing.

GBP/USD: Technical Analysis

Assumptions that the trading would be carried on in a narrow sideways range, mentioned in the previous comment, came true. The price remains within the range 1.6100-1.6030 and is currently testing its support again. Indicators suggest a breakout of this barrier, so we should expect the price to go downwards to the next support, most likely to level 1.6000 and then to 1.5970. If level 1.5970/1.5950 is breached, the market will have to reconsider the scenario, which suggests growth, because there will be risks for another fall in the instrument to level 1.5860 and may be level 1.5665. A reversal to growth is a possibility if there are problems with resistance 1.6040/50, and if it's breached - 1.6210/20.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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