Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Forex4you Technical Analysis 30 June 2011

 EUR/USD: Technical Analysis

 
Forecasts confirmed and the pair continued its growth. The price breached 1.4430/40 resistance line, confirming the "bullish" strong potential. At the moment trading is being carried out at 1.4510/00 level. If the attempts to fix the price above 1.4500 line turn out successful, we'll be expecting another ascension with targets seen at 1.4600/20 and 1.4700 levels. Indicators are "bullish" as well, saying in favor of the above mentioned scenario. On the other hand, it's worth taking into account significant 1.4560/70 resistance, which is currently in the way - the level may become a reason for cardinal changes in the market and initiate a reversal. The indication for it would be decline below 1.4430/40 support line.
 
 
GBP/USD: Technical analysis
 
The price recommenced its growth and reached 1.6100/10 resistance line, mentioned earlier as a possible maximum level for the consolidation range. At the same time, this barrier on the way up, 1.6100/20/40 range (yellow segment) was also mentioned before as the key barrier that may initiate a transition to a medium-term uptrend. Indicators are also turned up, suggesting further growth. Therefore we expect the price to breach currently tested level and proceed to the first resistance at 1.6220/30 level or may be even rise to 1.6320. However, after support 1.6100 was breached, it turned into a strong resistance level, which can push the trades back on the "bearish" track. Decline below 1.6050/40 level would indicate a downward movement, initially towards 1.5940/20 support line.
 
 
Analysis by: Joaquin Monfort
              Forex4you analyst
 
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.