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Forex4you Technical Analysis 26/11/10

EUR/USD: Technical Analysis

EUR/USD has pushed down through an important trend-line drawn from the June lows. If the break is confirmed by a further decisive move then the exchange rate might fall to the 200 day MA at 1.3135 initially and then perhaps to 1.2930 eventually. There has also been a break below the cloud on the Ichimoku chart this morning and if the descent since the 5th November highs is a zigzag then the downside target for the C leg is also in the 1.29s. Given the substantial downside already today, however, there may be a pullback to around 1.3250 first before any further falls.

EUR/JPY: Technical Analysis

Since bottoming a few days ago the euro-yen has made something of a drunkard’s walk across the chart: first veering up to the 111.90s first and then suddenly back down to the 110.90s where it is around about now. I think it will probably continue falling as the wave down from the highs made of the 22nd is missing a 5th wave, which could be unfolding right now. If it is of average length then it should slightly surpass the lows at 110.30 to perhaps bottom at 110.00 – although there is support at 110.50 too so it could end there.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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