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Forex4you Technical Analysis 27/07/10

EUR/GBP: Technical Analysis

This pair may be in the process of tracing out an intermediate Elliot flat pattern. We are probably nearing the end of minor wave B which began on the 20th July. Initially there may be some more downside as B ends but once it has completed, wave C up should last several weeks and reach the 0.8450s possibly even 0.85s. An initial target might be resistance at 0.8340. With volatility readings reaching low extremes on ATR and ADX it is likely that whichever direction prices go in, the move will be explosive.

EUR/USD: Technical Analysis

The wave down from the 6th August highs has probably finished and we are in the process of correcting the whole of that move. This rally will probable continue up to the 50% retracement level of the move at 1.2960 but initially there may be resistance at 1.2840.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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