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Forex4you Technical Analysis 09/12/10

EUR/USD: Technical Analysis

The price didn't make it to support 1.3150/40 and started its growth on trades from level 1.3170. But having failed to breach resistance 1.3320/30 it's pulling back at the moment, so the trading is carried out at levels 1.3200/10. Indicators suggest the "bearish" moods, which makes yesterday's scanario - support level 1.3150/40 test - quite a possibility. This level breakout will reveal the "bearish" potential will- a fast breakout will initiate minimums 1.2960/70 tests in the near future, a failure to breach this barrier will result in a sideways correction. Resistance breakout at 1.3320/30 will trigger a reversal to the "bullish" trend.

GBP/USD: Technical Analysis

Assumptions of a possible surprise factor in the pair - a pullback upwards to the recent local maximums at 1.5820/30 - turned out to be correct. After a rapid ascension and key resistance 1.5850/40 test the price is pulling back downwards and currently resides at 1.5770/80.  The second part of yesterday's scenario seem to be realized and the pair will recommence its decline to support levels 1.5500/1.5470. Nevertheless, to make it happen, the "bears" have to pass a lot of supports and one of them - level1.5780/70 - is being tested at the moment. Indicators give reasons to expect this level to be breached, so the price will descend to the next strong level - 1.5710/1.5690.  The next on the way are supports 1.5650, 1.5590, 1.5530. A signal for the "bullish" possible strength is the same – resistance 1.5840/50 breakout.

EUR/JPY: Technical Analysis

This pair reached highs in the 111.60s yesterday and has since fallen to resistance turned support at the top of the recent range at 110.60 and also the neckline of a sloping inverted H&S at the November 30 lows. It is quite probable that the exchange rate will revisit the 111.60 highs again. From an Elliot pattern perspective this pullback could be the wave 4 before wave 5 up. It might also be the pullback to the neckline of the inverted H&S with a move higher to 114.15 worth watching for.

Analysis by: written by Forex4you analyst

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