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Forex4you Technical Analysis 24/11/10

EUR/USD: Technical Analysis

The bears proved to be dominating, so the price declined not only to target level 1.3380/90, it went even lower, to 1.3280/90. We currently observe a slight pullback upwards and the trading is carried on at 1.3350/60.  Nevertheless, the indicators don't seem to change their direction and reverse upwards, so the bearish trend will most likely continue. The current pullback upwards, by the way, may be considered as the beginning of a sideways correction in the range 1.3400 – 1.3280, since level 1.3280 had proved to be strong both as resistance and support. As for reversal to growth, ascending above 1.3490/1.3500 will probably make the bearish trend questionable, but not more than that. The bears presently have the leading positions in the market, so the price will most likely continue to decline, after the sideways correction is over.

EUR/JPY: Technical Analysis

There is the possibility we are witnessing a bounce off the 110.30 lows with a possible upside target at the 111.45 level where there is a resistance line and the 50 day MA, although a possible pullback to 110.55 might occur before the rally really gets going. Further gains after that might target the 112.20 level where price will meet the trend-line from the September lows. More downside could reach the monthly pivot at 108.95.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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