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Forex4you Technical Analysis 03/08/10

EUR/USD: Technical Analysis

The market is following an uptrend line, and the price not only reached 1.3200 level, mentioned in the previous commentary, it went even further and the trading is now carried on at level 1.3230. Indicators restored their “bearish” way, MACD is rising, creating divergence, which brings this growth into a question. The price is likely to continue its growth and resistance level 1.3270 will be a big challenge for the ”bulls”. In case of a breakout an uptrend will stretch even further to the range 1.3350/80. A trend line breakout (red diagonal line) will signal of trend change and a change in the market moods.



GBP/USD: Technical Analysis

The “bullish” mood turned out to be even more aggressive: level 1.5830/20, which was expected to stop the growth, didn’t cope with the pressure, and the price is already testing level 1.5900/70. Indicators anticipate growth, strengthening by the MACD divergence disappearance. At the same level 1.5900/70 is a very strong resistance, so a growth stop became a probability. The price is also likely to start consolidation in a sideways range, limited by the levels 1.5970-1.5770/60. Resistance 1.5970 break will indicate a further upward movement towards the aim 1.6140/50. The trading is yet carried on above the support 1.5540. “Bullish” positions will be dominating. 



USD/JPY: Technical Analysis

Assumptions, that in case a resistance 86.95/87.00 breakout fails, the price will return to its downward movement and have greater chances to fall down to the new minimums, came true. Now the trading is testing level 85.90, which had been mentioned as the first aim yesterday. Indicators returned to a downward trend, which gives all reasons to expect a descent to 85.30/50. The market is expecting BoJ interventions, so even if the price comes down to the above mentioned minimums, it will be a momentary descent, and the price will rise above 85.90 again.



Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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