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Forex4you Technical Analysis 11/11/10

EUR/USD: Technical Analysis

The pair prefers a downwards movement, like it had been expected. The price descended to support  1.3660/40, but for a short period of time, and then returned upwards, so it's now consolidating around levels 1.3730/50. The consolidsation channel support has been breached but it now turns out to be a strong risistance, which which prevents the trading from moving upwards.  Indicators don't suggest any particular direction, which makes the situation unclear. At the same time, SS is stuck in the oversold zone and R%'s reversal to this zone indicates  the "bearish" potential to bring the trading down to 1.3650 and even to 1.3570. The alternative scenario remains the same - reversal above 1.3860 wil trigger the "bullish" trend.

GBP/USD: Technical Analysis

Growth above 1.6080/90 indicates the strengthening of the "bullish" trend. Nevertheless, to prove their dominating positions the "bulls" have to bring the price back above the breached uptrend channel line (blue dashed line) and fix above resistance 1.6200. Until it happens, the "bears" have all chances to prove their strengh too. Indicators don't give any outlok for now, which sugests a possible sideways movement. Growth above 1.6200 will be a signal to the next level 1.6300 test, a fall below 1.6040 will trigger a reversal to the "bearish" trend.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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