Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Forex4you Technical Analysis 29/09/10

EUR/USD: Technical Analysis

Resistance at level 1.3540/20, mentioned earlier as the growth target couldn’t hold back the pair’s movement. The pair pulled back and currently resides at 1.3580/90. Nevertheless, indicators keep forming MACD divergence, which is seen as a signal to a possible large0scale correction. The bulls still have chances to continue their upward movement and raise the price to 1.3700/1.3680, wherefrom the price will start its falldown. Support level 1.3200/1.3160 breakout will indicate a reversal to the “bearish” moods.

EUR/JPY: Technical Analysis

The EUR/JPY pair is in a sideways move, consolidating before the next move higher. Initially it will probably fall a little further to the bottom of the range at 112.90, then possibly lower to 112.15 if the decline is severe. After that I see a rally taking prices back up to 115.00, which is the point and figure target from the August lows, or even 116.95 possibly where they will meet resistance from the R2 pivot.

GBP/USD: Technical Analysis

Resistance level 1.5920/10, mentioned earlier as the target with the following large-scale correction, prevents the price from further growth. Having tested level 1.5905/00, the trading is pulling back downwards, and it’s now being carried on in a narrow range. Such state of affairs might be the expected correction itself, but its realization should be large-scale in terms of time, rather then a price pullback. Indicators show the “bullish” activity slowdown, but they don’t give any signals for a reversal – this fact gives reasons to assume further sideways movement with the following reversal to growth. Level 1.5920/10 breakout will indicate a raise to the new local maximums at 1.5970/80. Support falldown below 1.5700 will be a signal for a medium-term mood change. Level 1.5740 breakout will indicate the weakening of the “bullish” (uptrend) potential.

USD/CAD: Technical Analysis

This pair has been forming a triangle on the daily chart since May. We may have now finished the final E leg and it is possible that an upside breakout could follow. The particularly low ADX at 11.89 is often a sign a rapid volatile move is about to happen. Notice also the ‘shake out’ move of the 22nd with a new low immediately followed by a ‘new’ high; this sort of thing often presages a change in trend. Watch for a break above the clustered MA’s at 1.0350 and then a speedy run up to resistance highs at 1.0685.

USD/JPY: Technical Analysis

The price breached support 84.00/10, 61.8 Fibonacci of the previous growth, and now level 83.50 holds back the “bears” from further movement. Indicators are turned downwards, so there’s a chance that the trading fall to the new minimums at 83.00-82.90. At the same time, there’s also a possibility for another BoJ intervention, so the situation is rather unclear and it would be a good idea to pospone trading for some period of time and see.

Analysis by: written by Joaquin Monfort
Forex4you analyst

Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.