Forex4you Technical Analysis 3rd Feb 2011

EUR/USD: Technical Analysis

This pair has fallen back down to support from the major trendline from the June ‘10 lows, as anticipated. From here it could launch another rally with a target just short of the recent highs at 1.3850. Alternatively there is a possibility of a break down – possibly even a collapse. If so then the next substantial support grouping at 1.3650 could be expected to at least stall any bear moves.

http://forex4you.ninjacdn.net/charts/EURUSD030211.png

GBP/USD: Technical analysis

The price reached its target at level 1.6260/70, where it currently resides. However, the indicators are still being "bullish", suggesting to expect further growth. The market may be tempted to test the trend line(green line) at level 1.6330, which links two maximums from August and November 2009. However, strong resistance stands in the way at leve1.6270/60, which gives reasons to anticipate the next pull back from this particular level. If, when declining, the price falls below 1.6060, it’ll give more grounds to expect another decline to 1.5750. At the same time, even if this forecast proves to be correct, further "bullish" trend in a medium-term will still be a possibility. Growth will then be over, when the price holds below 1.5750.

http://www.forex4you.com/images/site/GBP030211.GIF

EUR/JPY: Technical analysis

EUR/JPY is in a wedge-like ending diagonal pattern which looks almost complete. I count 5 waves within its borders so it could be about to break. Any move down would be expected to reach support at 111.75 initially, from the 200 day MA, and then perhaps at 111.25 from the major trendline off the November ’10 highs. There is also still a possibility of a final wave higher to the upper border of the wedge at 113.10 and even an upside breakout with resistance at 114.15 as a price target.

http://forex4you.ninjacdn.net/charts/EURJPY030211.png

Analysis by: Forex4you.com written by Forex4you analyst

Disclaimer:
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.