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Forex4you Technical Analysis 02/12/10

EUR/USD: Technical Analysis

Assumptions about a possible correction in this instrument are likely to turn out correct - the price raised to level 1.3150/60, mentioned earlier as the consolidation range resistance and is currently making attempts to breach this resistance. Indicators suggest the "bullish" moods to be dominating in the market, which can be considered as a proof that further growth will be successful. In case the tested level is breached, the next to xome will be resistance 1.3190/1.3200, mentioned yesterday as a possible resistance for correction range. Level 1.3460/50 breakout suggest the "bearish" potential, though previuosly mentioned targets at 1.2920/00 remain relevant for the nearest future.

EUR/JPY: Technical Analysis

This pair has pushed up to slightly above the monthly pivot at 110.80. The 200 hour MA is providing overhead resistance at 111.20 as is the 38.2% Fibonacci line from the decline since the early October highs. In the short term I see a rollover from the current highs and a fall back down to the 110.50s as a distinct possibility. After that there may be a further rally if the pattern unfolding from the November 30 lows is a zigzag. If that is the case then we could see the C leg reaching the 112.40s.

GBP/USD: Technical Analysis

The price tested level 1.5650/40, which turned out to be quite a strong resistance. The price currently resides close to this barrier at level 1.5630, making attempts to breach it. Indicators are turned up, which clearly suggests the change of moods, as well as yesterday's fears that level 1.5650/40 won't be able to hold back the "bulls". If it happens, yesterday's scenario will be probably realised and the price will most likely rise to resistance 1.5760/50. Nevertheless, sideways movement in the range 1.5650 – 1.5520/30 with further decline to 1.5330/20 is still a high possibility. Resistance 1.5750/60 is critical for a down trend - if it's breached, the market moods will most likely significantly change.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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