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Forex4you Technical Analysis 20/08/10

EUR/USD: Technical Analysis

A reversal in the pair doesn’t suggest any significant changes on today’s session either. Sideways rage consolidation is likely to continue. We can only expect levels 1.2870/90 and 1.2730/20 testing for strength, which are currently define the range. Previous comments are in force – a rise above 1.2870 and level 1.3010/20 testing are not enough to change the market moods. It will only be a possibility if the price fixes above resistance 1.3090-1.3110. When it’s breached, the price will most likely rise to the new local maximums - 1.3380/1.3400. The price fall below 1.2730/00 will be a signal to the “bearish” scenario, initiating support levels 1.2620/30 and 1.2540 tests in the nearest time.

USD/CHF: Technical Analysis

This pair is in an incomplete wave down which began on the 12th August and looks very much like a double zig-zag. According to channelling and Fibonacci extensions from the most likely scenario is for a roll over to occur at a little above the current position at 1.0370 and for a steep decline to follow which should at the least reach 1.0235.

USD/JPY: Technical Analysis

Level 85.00 was significant for the last session, being a key support. Attempt to break this support ended with a fast pullback upwards. This event has a political implication – possible BoJ interventions in case of a price fixation below 85.00 leave investors very cautious. Such moods will probably be dominating on the current session either, the price will remain above 85.00, moving sideways. Indicators are neutral, proving the assumption above. Such state of things give the “bulls” all chances to strengthen. Fixation above 85.40/50 can initiate a rise to 85.90/86.00.

AUD/USD: Technical Analysis

The trading in this pair remained in a rather wide range, limited by levels 0.9040/80 – 0.8850/60. Having tested level 0.9080, the price went back downwards and now resides around support 0.8880/90. Indicators prefer a further descent and support 08850/60 breakout, which had stopped the “bears” at the beginning of the week, will be the signal to medium-term downtrend. A successful breakout will open the way to level 0.8780/70 and 0.8650 afterwards. If the breakout fails and the price pulls back upwards, resistance 0.9040/0.9080 test is more likely to happen.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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