Thread: Forex4you Technical Analysis 12 January 2011

EUR/USD: Technical Analysis

The price breached the sideway correction range 1.2980/90 and it currently resides at level 1.3030/40. Indicators are turning upwards, suggesting to expect further growth. Although there is a strong resistance on the "bullish" way - level 1.3060/80, that is strong enough to stop growth and bring the price back to a down trend. Nevertheless, if the barrier is breached, level 1.3150 will be tested - if it's breached too, we'll be expecting a reversal to the "bullish" trend in a mid-term. Reversal down, below support 1.2990 will be a signal to the beginning of the "bearish" trend with the next fall to 1.2795 and then to 1.2700/10.



EUR/JPY: Technical Analysis

The bounce off Monday’s lows was slightly stronger than I anticipated. It looks like a nearly completed Elliot wave 4. Once it ends the main trend down should resume temporarily. An initial downside target might be the line of support and resistance at 107.50. If the move is strong then it could move lower to the area of the old lows at 106.75. As mentioned before a larger wave cycle is probably in the process of finishing so there may be some unexpected buying pressure and caution should be exercised in shorting the pair. After wave 5 bottoms the exchange rate should rally quite strongly.



GBP/USD: Technical Analysis

Strong resistance range 1.5560-1.5530 was breached, indicating the "bullish" sentiment, so the price continued to rise, reaching level 1.5670/80. Currently the trading is carried out at 1.5640/30. Indicators turned up, suggesting further "bullish" trend. At the same time, level 1.5680/60 is considered to be a strong barrier, able to trigger a sell off in the pair. Nevertheless, if this resistance range is yet breached, level 1.5840/50 should be tested in the near future. Reversal down, below 1.5560-1.5530 will be signal to a soon local minimum test at 1.5340/30.


Analysis by: Forex4you.com written by Forex4you analyst

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Thanks for this analysis!