Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Forex4you Technical Analysis 29/11/10

EUR/USD: Technical Analysis

The movements in this instrument proved the assumptions of the previous analysis - the price continued to decline and the "bears" almost reached the target level 1.3160, mentioned earlier and received support at 1.3180. Having pulled back upwards, the trading is carried on at level 1.3240/50. Indicators don't suggest the "bearish" trend to be dominating, though the assumptions of levels 1.3160 and 1.3110\00 tests are still relevant. The outlook for the nearest future suggests a sideways correction within the range 1.3250 – 1.3280/60. Reversal upwards will meet strong resistance at 1.3450/40.

USD/JPY: Technical Analysis

The "bullish" attempts to fix the trading above resistance 83.50/60 ended sucessfully, so the price continued its growth, but only up to resistance  84.00/10, mentioned earlier. We currently observe attempts to breach this barrier on the way up and the trading is carried on around levels 84.00/05.  Indicators begin to show a decline, which gives reasons to expect a longer consolidation on the current levels, and MACD divergence is a good proof that these assumptions are correct. There is a chance that the sideways range will stretch to support 83.60/50. Nevertheless, it's the "bullish" moods, that seem to be dominating in the market. If the currently tested barrier is breached, the price will grow further, to resistance 84.60/80. Reversal down and a fall below 83.60/50 will indicate a soon end of the "bullish trend".

EUR/JPY: technical analysis

The exchange rate appears to be consolidating in a triangle pattern. The D wave  down is probably unfolding now with a slight possibility of some movement lower to perhaps the triangle border at 110.70 before completion and then an upswing in wave E back up to the triangle highs at 111.70. A more decisive break down earlier could take the exchange rate to between the minimum objective for the triangle at 109.50 and a tight support grouping at 109.00.

Analysis by: written by Joaquin Monfort
Forex4you analyst

Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.