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Forex4you Technical Analysis 25 May 2011

EUR/USD: Technical Analysis
 
Previous growth was halted by a strong resistance around 1.4120/30 levels, so the trading pulled back downwards. The price now resides at 1.4070/80. Indicators are still turned up, but only in R% and MACD, SS looks neutral.  Therefore, we should probably expect further correction, thought "bearish" trend is now dominating. When correcting, the price is also likely to test 1.4200/20 resistance level - downtrend channel (red) line. At the same time, further decline may commence from the current levels already. 1.4000 level breakout would indicate that a downtrend recommenced with the next stop, expected at  1.3850/60 level.
 
 
GBP/USD: technical analysis
 
1.6170 resistance level, that had been holding back the price from growth, was breached, so the price is now approaching to 1.6200 level. Some indicators have already changed their direction and turned up. Significant 1.6220/25 resistance level, which matches with a downtrend (blue) line is now standing in the "bullish" way. Level 1.6220/10/30 was And even though the "bulls" might go as far as 1.6235 level and test it, a pullback is still likely to commence right afterwards. Fixation above 1.6235 level would indicate a more serious "bullish" potential.  Should the "bearish" trend recommence, targets will be anticipated at 1.6000/10 and then at 1.5940/30 levels.
 
 
Analysis by: Arkady Nagiev
             Forex4you analyst
 
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