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Forex4you Technical Analysis 10/11/10

EUR/USD: Technical Analysis

Strong resistance 1.3960/70, mentioned in the previous comment, triggered a pullback downwards, which brought the price to lower than expected supports.  After level 1.3730/40 the price bounced upwards and currently resides at 1.3790/80. In case the price falls below 1.3860/40, the "bearish" moods will strengthen, which is already seen on the indicators, that suggest sich a possibility. Yesterday's assumptions that support 1.3660/40 is likely to be tested are still relevant. Nevertheless, reversal higher 1.3860, i.e fixation above consolidation range support (blue line), will indicate a reversal to the "bullish trend".

GBP/USD: Technical Analysis

This pair has fallen from the 4th November highs. Yesterday it dropped over 150 points but has now stabilized and entered into a sideways consolidation zone. This could be a triangle whose final thrust might take the exchange rate to1.5930 at first, where the monthly pivot is and then perhaps even to 1.5900 where the exchange rate would meet the trend-line up from the May lows. An upside breakout before then might be expected to reach trend-line resistance at 1.6050.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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