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Forex4you Technical Analysis 12/07/10

EUR/USD: Technical Analysis

  As formerly cautioned, the breach of the support at 1.2620/30 opened the way down, and the price is consolidating at 1.2570, which had been formerly mentioned as another support. The indicators evidently reversed down and speak well for the continuation of the sagging down to 1.2510/00, which was also noted before. However, there’s an intermediary, but powerful all the same support within the range of 1.2550/30 on this way. If this support is breached in the close time the price won’t stay at 1.2510/00 log most likely, but go down further, to 1.2460 and further till 1.2400 i.e., the target will be at the trend line of the upgrading channel (the red lines).

   The alternative scenario will be possible only when the trades come back above the resistance at 1.2620/30.

GBP/USD: Technical Analysis

All former forecasts in selection of the “bearish” scenario are fulfilled up to the moment, because the breach of the support range of 1.5100/1.5080 has let the decline go on. The “Bears” breached the trend line of the channel (the blue line) and checked the support at 1.4980/60. The price currently resides at 1.4990/95. The indicators’ values state for the continuation of the downgrading move, which has all chances being succeeded, by the way. The breach of the support at 1.4950/20 will determine the high probability of the price sagging into the range of 1.4820-1.4780 in near time.

   Meanwhile, the classic scenario is also high possible, as usual. In other words, when the price returns to the previously breached trend line to check up endurance of its recently changed state, in this context the turn of the support into resistance, the upturn till 1.5040/50 is possible. Both the comeback into the sector of the channel and fixation above 1.5080 will point to the comeback of the “bullish” predominance to the market.

USD/JPY: Technical Analysis

The pair has almost achieved the formerly mentioned target of 89.20, as it has marked 88.90/80. The trading rolled back down thereupon it had faced a resistance, and now it’s currently carried at 88.90/80. The indicators begin to demonstrate the weakening of the “bullish” potential. Nevertheless, it’s too early to speak about the reversal still yet. The price is able enough to go ahead raising and so reach 89.20 after all.

   On the contrary, the breach of the resistance at 89.20 will give a handle for forecasting the upturn lasting till the price sector of 90.00-90.50. The price decrease below that very support at 88.20 will announce the change of the short term upgrading trend.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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