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Forex4you technical Analysis 30/08/10

EUR/USD: Technical Analysis

As long as the 1.2674 lows hold then prices should continue higher reaching 1.2920 eventually, if not 1.2950. At that level they will encounter a cluster of resistance from the 50% Fibonacci retracement, the broken trend-line of the move up from the June lows and they will probably reverse and resume their downtrend.

GBP/USD: Technical Analysis

Attempt to break support 1.5470 and commence the “bearish” scenario failed. The level was breached, but the price pulled back to consolidation range 1.5550 – 1.5470, where it still resides. Indicators are uncertain and don’t show any particular direction. Expectations, mentioned in the previous comments are still relevant – key resistance level 1.5550 breakout and fixation above will suggest the growth. But only level 1.5670/80 breakout will give a final signal to the “bullish” moods and anticipate levels 1.5790/1.5800 tests in the nearest time. The “bearish” trend will be prevailing if the price falls below 1.5470. In this case we’ll be expecting support level 1.5340/30 test. Support 1.5500/1.5490 breakout will be an early indicator of a downtrend.

USD/JPY: Technical Analysis

The “bulls” breached resistance 85.10- 84.90 and even tested 85.80/90, but they didn’t manage to fix there, so the price is currently pulling back downwards and the trading is held at level 84.70/75. Indicators reversed to a downward movement, which suggests further price fall. On the other hand, there is support 84.40/50 on the way, which can become a pivot point. At the same time, complicated yen’s financial and political situation suggests a possible range trading, limited by levels 84.40/84.90 – 85.00/10, with a high risk of  support range descending to 84.00/83.90. As for the middle-term outlook, the “bullish” mood is most likely to be dominating.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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