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Forex4you Technical Analysis 31 May 2011

May 31, 2011 8:10 AM ET
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 EUR/USD: Technical Analysis

After yesterday's pullback, the EUR/USD shot up today reaching the 1.44s. There is now considerable resistance overhead and the exchange rate will probably fall back down to support at 1.4370 before possibly making another move higher. The point and figure 0.001x3 chart gives a target of 1.4670 – but there is a support and resistance level at 1.4530 and the channel line at 1.4450 which provides a nearer term target.
GBP/USD: Technical Analysis
The price successfully breached level 1.6500/10, proceeded to 1.6540/50 and is now consolidating a bit higher, at level 1.6520/15. Indicators are mostly "bullish", but their readings seem to be weakening, which gives reasons to expect the price to halt its growth and commence a continuous large scale downward correction. The signals for reversal are the same - support 1.6450 breakout is deemed as the first signal for reversal to a down trend. Another serious sign for that would be 1.6400/10 support breakout, followed by fixation lower. As long as trading is carried out above 1.6450 level, we can still expect the price to ascend towards the breached uptrend channel (red) line around 1.6680/90 levels.
Analysis by: Arkady Nagiev
             Forex4you analyst
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