Forex4you Technical Analysis 23/09/10

EUR/USD: Technical Analysis

Resistance level 1.3390/1.3400 didn’t let the “bulls” continue their growth, so we currently observe a pullback downwards with the price at 1.3340/50. Assumptions about possible consolidation around levels 1.3390 – 1.3250/60, mentioned in the previous comment, seem to be correct. Indicators show a possible reverse downwards, which gives even more grounds for such scenario, so that correction, that we currently observe, may extend and reach support level 1.3250/60. Expectations of an uptrend with target 1.3520/40 are still in force in case the trading fixes above 1.3400. Support 1.3200/1.3180 breakout will indicate the weakening of an uptrend potential.

GBP/USD: Technical Analysis

This pair is probably in the process of topping out. Whilst it is possible prices may go a little higher, perhaps to resistance from pivot at 1.5750 a substantial correction is probably near at hand. The move up which started at the September 7th lows has met the minimum requirements for a completed market cycle. Whilst it would be prudent to wait for price to confirm or for a sell signal from the overbought RSI and Stochastics it is highly probable that the pair will fall soon. The correction could go as far back as the 21st September lows, at 1.5530 where there is a natural line of support and the bottom of the Ichimoku cloud.

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.

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