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Forex4you Technical Analysis 08/12/10

EUR/USD: Technical Analysis

Assumptions that risistance 1.3410/00 was strong enough to withstand the "bullish" attacks turned out to be correct. The price didn't manage to pass this barrier, so it currently resides at 1.3190/80. Indicators suddently changed their readings in favor of a downward movement, which gives reasons to expect further possible decline. The current fall will probably reach support 1.3150/40, which breakout would indicate the "bearish" potential. If the barrier is easily breached, we'll be expecting new minimums to be tested at 1.2960/70 in the nearest future. A return above 1.3320/30 suggests a reversal to the "bullish" trend.

GBP/USD: Technical Analysis

The price got close to the key resistance 1.5850/40, but then pulled from level 1.5820 and reversed to decline. Having tested level 1.5670/60, the trading is pulling back up and is currently carried on at levels 1.5700/10. Seems like the assumptions of the previous analysis, that a fall below support 1.5710/00 would give reasons to expect a reversal to growth for a medium-term, are starting to be realised. Indicators reversed down, which gives even more reasons to expect this reversal. Support level 1.5650 breakout will be one more signal for that.  It's worth taking into account that support 1.5650/40 is rather strong, which makes a big pullback upwards to the last local maximum 1.5820/30 with further reversal to decline quite a possibility.  Resistance level 1.5840/50 breakout will indicate the "bullish victory".

EUR/JPY: Technical Analysis

This pair rallied up to the top of the range and the monthly pivot at 110.80. It is currently pushing against these resistance highs and indications remain quite bullish. There appears to be a triangle unfolding sideways at these same highs which may be breaking out at the moment and it could thrust up to perhaps 111.55 or thereabouts. There is also a slanting inverted head and shoulders pattern on the 4-hour chart which is breaking its neckline currently and could reach a target of 114.15. However, a move back down to the bottom of the triangle at 110.65 is also possible before any further action.

Analysis by: written by Forex4you analyst

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