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Forex4you Technical Analysis 22/11/10

EUR/USD: Technical Analysis

The exchange rate moves higher as this Elliot wave 4 correction of the fall from November 5th continues unfolding. It rose up to the 1.3785s in the overnight session but since then has rolled over. It is possibly completing a zig-zag down now in which wave C may be equal to A - if not longer. If we count A as coming down from this morning’s highs to bottom at 1.3725, then C should end around 1.3687, which is exactly the same point as the open gap also at 1.3687. In this scenario the exchange rate could fall to fill the open gap with a target in the 1.3680s, after that, there is likely to be a rally back up to the 1.3785 highs if not slightly higher, again as the next wave up within 4 completes. There is also a chance the gap will not fill, however, and the rate will rally up sooner.

EUR/JPY: Technical Analysis

This pair has gapped up to just under the trend-line linking the peaks at October 1st and November 4th. It appears to have rolled over into a correction down which is probably a 3 wave zigzag. We seem to have had 2 waves – A and B already with C still to follow. C may well reach down to 114.30 which is also the bottom of the open gap on the chart before pushing higher. The final objective could be slightly above the recent highs at 115.00.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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