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Forex4you Technical Analysis 27 January 2011

EUR/USD: Technical Analysis

This pair has risen to touch the underside of the old trend-line from the June lows. It has been unable to penetrate above however, and this morning a sharp sell-off brought  prices down to 1.3637 breaking the trend-line of the move from Jan 10 lows in the process. A recovery rally has brought prices back into the range in the 1.3680s. I think it is unlikely the move down is complete and a ‘C’ leg might unfold with a target of 1.3610 where the S2 daily pivot resides. Alternatively a continuation higher might reach the top of the range at 1.3725.

GBP/USD: Technical Analysis

Seems like the previous assumptions have been correct and the price is very likely to grow to 1.6270/60 in a medium-term. The price returned to the uptrend channel sector, which initiated the trend line correction (blue dashed line, blue line). At the moment, the price resides around levels 1.5930/35. Indicators seem to grow further, so the "bullish" trend to the above mentioned target levels is very likely to continue, although resistance 1.6060/70 breakout would be a more convincing signal for that. However, to breach this barrier, the "bulls" have grow above the range 1.5960-1.5930 first. On the other hand, if the price breaches and holds below support 1.5750/40, we'll be expecting the "bearish" trend to become dominating.

USD/JPY: Technical Analysis

Support level 82.00 held back the "bearish" attempts to decline. Besides that, thanks to the fundamental-political information on Japan's economy, the price jumped abruptly up and it currently resides at 82.70/80, passing levels  83.00/10. Indicators are changing their readings, indicating transition to "bullish", which gives reasons to consider current growth as a good signal for the reversal to the up trend and further growth to levels 84.00/83.90, mentioned in the previous analysis.

Analysis by: written by Forex4you analyst

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