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Forex4you Technical Analysis 16/12/10

EUR/USD: Technical Analysis

Support 1.3320/10 breakout suggested realization of further down trend scenario. The price plunged towards resistance level 1.3220/30, where it still consolidates. Indicators are turned down, giving more reasons to expect a decline, the trading is very likely to sink towards 1.3150/40. There is also a high possibility that a down trend expands to supports – 1.3050/60, 1.2980/70. At the same time, it's worth noting, that the support level, which is being tested at the moment has already proved its strength recently, so we recommend to consider sideways consolidation within 1.3300/10 – 1.3220 as well. Reversal above 1.3400/10 and attempts to breach resistance 1.3450/60 will indicate the "bullish" potential.

GBP/USD: Technical Analysis

Support 1.5310/00 breakout triggered the "bearish" scenario, like we'd expected in the prior analysis. The price continued to fall and stopped only at support 1.5530/20, mentioned yesterday. Supports 1.5650, 1.5590 managed to hold back a decline just for a short period of time. Having pulled back up, the trading is carried out at 1.5600/10. Indicators say in favor of down trend, suggesting minimum tests 1.5480/90 in the near future. To recommence the up trend, the "bulls" have to raise the price and fix it above 1.5710/20.

Analysis by: written by Forex4you analyst

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