Forex4you Technical Analysis 09 Feb 2011

EUR/USD: Technical Analysis

The corrective rally which began on the 7th Feb is slowing down. After touching the 1.3680 highs and the 50% Fibonacci retracement of the preceding move the rate has fallen and is now going sideways. It will probably fall further and if it passes below the previous trough low at 1.3611 that will be a strong bearish signal as the rising sequence of peaks and troughs will have been broken and replaced by a falling sequence instead. Alternatively, if the rate rallies above 1.3685, that could be a bullish sign and might open the way to retesting the 1.40 highs and the monthly pivot.

http://forex4you.ninjacdn.net/charts/EURUSD090211.png

GBP/USD: Technical analysis

The price breached the trend line of the upper channel (blue lines) and it's currently testing an auxiliary line (blue dashed-line), which matches with the key support level 1.6060. Indicators turned even more "bearish", which gives reasons to expect a decline. However, until the price holds below 1.6060, the "bulls" still have good chances to recommence their trend with the target at 1.6330/20, mentioned in the previous forecast. Decline below level 1.6060 will be the indication of a stronger "bearish" sentiment. Fixation below level 1.5750 will be a sign that medium-term growth is over.

http://www.forex4you.com/images/site/GBP090211_1.GIF

USD/JPY: Technical analysis

The "bulls" failed to breach support level 82.50/60 at first. Then, after a short correction, they made another attempt to test and breach this level, and it turned out to be successful. At the moment they are trying to hold above this level. The price is testing corrected trend line (blue dashed-line) of a downtrend channel at level 82.60. Previous forecast that the up trend has a big potential are proving to be correct. Indicators are "bullish", suggesting to expect the next resistance test at level 83.00/10 very soon. Ascension to level 84.00/10 is a possibility, albeit there are strong resistance levels on the way, so it's worth being wary and consider a sideways consolidation scenario.

http://www.forex4you.com/images/site/JPY090211.GIF

Analysis by: Forex4you.com written by Forex4you analyst

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