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Forex4you Technical Analysis - 13/12/10

EUR/USD: Technical Analysis

The "bears" didn't manage to breach support 1.3150/40, like it had been previously assumed, so, the sideways movement continued. The trading is currently carried out at 1.3210/20. Indicators are "bearish", thanks to SS, though both R% and MACD suggest further consolidation within the range 1.3310 – 1.3150/40 as a higher possibility. Support 1.3150/40 breakout will most likely initiate new minimums test at 1.2960/70, with a possible stop near support 1.3050/60.  A reversal to the bullish scenario will take place in case resistance 1.3320/30 is breached.

GBP/USD: Technical Analysis

Assumptions about the range trading between 1.5840 – 1.5720/10, mentioned in the previous analysis proved o be true. Having tested level 1.5840/50, the price returned downwards; it currently resides very close to the support of this range, trading at level 1.5730/20. Indicators are turned downwards. Earlier forecast is still relevant  - if the upper border of this range - level 1.5840 - is breached, we'll be expecting critical changes in the market moods to the "bullish". Falldown below 1.5710 will open the way to the new minimums, though levels 1.5650, 1.5590, 1.5530 are going to be rather challenging for the "bears".  For now, further "bearish" trend is considered a higher possibility.

EUR/JPY: Technical Analysis

This pair bounced off resistance-turned-support at 110.50 towards the end of last week and has been rising steadily since. It is approaching the recent highs at the 111.60 mark and it ought to get as far as them, if not slightly higher. This is perhaps an Elliot wave 5 of the move up from the December 7 lows and once finished it should complete the impulse. Right now it looks like it is falling a little, but this is probably only a correction – back to 111.20 perhaps - before a final thrust higher to 111.70 or thereabouts.

Analysis by: written by Forex4you analyst

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