Forex4you Technical Analysis 09/07/10

EUR/USD Technical Analysis

The price marked the new local maximum of 1.2720/25 and is now returning down, - under the level of 1.2700. The resistance line of the ascending channel (red lines) continues to restrain the “Bull” activity, fixing the closing prices below. However, the indicators remain in the warning of a reversal or a large-scale correction to the growth of the pair. Adjustment of the long-term descending trend line (blue line) moved the key resistance to the levels of 1.2790/1.2800. The break down of this barrier, as already mentioned, will give ground for the range test of 1.2800/1.2900. Nevertheless, the divergence on MACD calls for caution and keeps open the scenario mentioned in the last comment - the breakdown of the level 1.2620/30 will mark the probability of the early price fall and the next supports will be 1.2570 and 1.2510/00.

GBP/USD Technical Analysis

As expected, the price made a try to keep falling but has found support at the level of 1.5100 and returned up, continuing the range trade. The indicators keep showing a certain neutrality but with the priority for the “Bear” mood. Nevertheless, the situation should be considered unclear. The side way movement, which is being observed during the week, may end either with the Bullish or the Bear scenario. In this case, the signal for growth would be a breakdown of the resistance range 1.5340/20 and for the fall, - the break down of the support interval 1.5100/1.5080. With the success of the “Bulls” - the first target is located at the level of 1.5300/20 and if the power returns to the “Bears” - the trend line of the channel (blue line) will be broken down and the support level of 1.4980/60 will be tested in the relatively near future.

Analysis by: written by Joaquin Monfort
Forex4you analyst

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