EUR/USD: Technical Analysis
The pair yesterday's decline turned out to be a correction within the up trend. The price recommenced its growth, so the trading is currently carried out at level 1.3420/30, very close to the local maximum. Indicators turned abruptly up, suggesting to expect further growth. Nevertheless, resistance levels are strong, so reversal to support 1.3240/50, i.e further sideways correction, is also a possibility. Range 1.3500-1.3450 breakout with the following fixation above will indicate a strong "bullish" potential, which has all chance to initiate growth to 1.3780/1.3800. Support 1.3080/60 breakout may trigger a reversal to the "bearish" trend.
GBP/USD: Technical Analysis
Assumptions of the previous analysis came true - strong resistance range at level 1.5950/30 didn't manage to reverse the trend, it had been easily breached, opening the way to a new barrier at level 1.6050/60, where the trading still resides. Indicators are turned up, which makes yesterday's scenario quite a possibility - the price is very likely to rise to 1.6270/60, although to make it happen the price should first fix above 1.6060/60. Reversal below to 1.5950/40 will stop the growth, initiating another correction within the range with support at level 1.5930/00. Falldown below level 1.5650/80, which is also a key support, will be a signal to the reversal to a down trend.
EUR/JPY: Technical Analysis
This pair fell yesterday but found support overnight and then began rallying again as anticipated. The rally is probably an Elliot wave 5 of the whole move up which began at the January 10 lows. Most wave 5’s of this size surpass the high of wave 3 and travel on average 20 or so points higher, giving a target of 111.18. But the R1 monthly pivot at nearby 111.29 would also be expected to provide resistance to the rally, so it is possible the rally will stall at somewhere in between these two levels, perhaps 111.25 before falling again in a correction.
Analysis by: Forex4you.com written by Forex4you analyst
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18-01-2011, 12:48 PM #1
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Forex4you Technical Analysis 18 January 2011
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