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Forex4you Technical Analysis 03/12/10

EUR/USD: Technical Analysis

Indications are that the countertrend rally or Elliot wave 4 in EUR/USD is probably nearing an end.  Within the rally we appear to be in a sideways consolidation currently, like a triangle and the next move depends on the direction of the breakout from that range. It is possible that it could start falling very soon but there is a good probability there will be a final thrust higher with a target in the 1.3280s, where there is also additional resistance from the underside of the trend-line from the June lows, a support and resistance level and the 38.2% Fibonacci line of the bearish decline. From there the 5th wave decline may well begin but any move down would have an initial support target at 1.3100 followed by just below the 1.29 lows.



AUD/USD: Technical Analysis

A reversal and the change of moods in the pair suggests that the "head and shoulders" pattern is not over yet. Level 0.9710/15 breakout gave new reasons to assume that. The trading is currently carried on at level 0.9810/00. Indicators are turned up indicating further possible growth. Resistance range 0.9870-0.9840 is most likely to become the target for the growth, wherefrom either a pullback or even a reversal is very likely to take place. In case of a reversal, by the way, we;ll be still expecting "head and shoulders" pattern to continue its formation. If this resistance is breached, the "bulls" will have all chances to recommence their trend with further new maximums tests in the nearest future. A downtrend scenario will be canceled in case the price breaches resistance 0.9970 and fixes above this level.




Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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