Forex4you Technical Analysis 22/12/10

Discussion in 'Trading' started by forex4you.my, Dec 23, 2010.

  1. GBP/USD: technical analysis

    A fall below 1.5480 promoted the "bearish" movements in the market and the price continued to decline, reaching level 1.5420/30, though it currently resides at 1.5440. Target 1.5410/00 hasn't been reached yet, but there are reasons to expect it anyway, regarding the present situation. Indicators suggest the "bearish" trend, MACD, on the other hand, is forming "bullish" divergence. So it's worth considering a large-scale pullback upwards as well. Growth above resistance 1.5530/20 will be a signal to the pullback.


    EUR/JPY: technical analysis

    Yesterday the exchange rate dropped to support at the 109.50 lows as predicted. The bounce from there was short-lived and this morning we had falling prices once again which have reached 109.70 so far and will probably find support at 109.50 again. From there, there could be another bounce, perhaps to 110.00, which could complete the E wave of a triangle (which began at the lows of the 20th ). If so then ultimately we could see much lower prices after the triangle breakout, reaching perhaps down to the old lows at 108.40. Alternatively there may be a break to the upside targeting the 110.80 highs at the monthly pivot again.


    EUR/USD: technical analysis

    The "bears" were lucky yesterday and almost tested level 1.3050/60, reaching 1.3070. Then, a pullback followed, bringing the trading back to level 1.3150, which has become a strong resistance. The price is currently rebounding downwards and consolidating at 1.3130/20. Indicators are turned down, though R% registered the surge of growth. With no significant changes made, previous assumptions are still relevant - support 1.3050/60 is likely to be tested or even breached in the near future, which suggests risks for further decline to 1.2970/80. At the same time growth to 1.3230 or even to 1.3300/10 is a possibility, though it may commence from the current levels as well.


    EUR/USD: technical analysis

    The EUR/USD pair fell to support just below the 200 Day MA at 1.3075 yesterday evening and then bounced as expected. It is still rallying and could be expected to reach 1.3200 perhaps where the exchange rate will touch the upper channel line of the move down since the 17th. After that there is a possibility of another reasonably strong sell off, back down to the recent lows at 1.3075 perhaps.


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