Forex4you Technical Analysis 21 Feb 2011

EUR/USD: Technical Analysis

Previous forecast turned out to be correct - the price reached support at level 1.3540/30, then reversed to growth and breached resistance level 1.3630/40. After that the price rose to resistance level 1.3720/20, mentioned in the previous forecasts as the target level. Indicators show the "bullish" trend. which gives more reasons to expect further growth. The next resistance level is very likely stand at level 1.3820/30, close to the breached up trend channel line. However resistance at 1.3720/10 may turn out to be strong and initiate a correction within the range 1.3720/10 – 1.3640/30. Decline below support level 1.3630/00 will indicate the weakness of the "bullish" trend and suggest to consider a reversal to the "bearish" trend as quite a possibility.

http://www.forex4you.com/images/site/EUR210211_1.GIF

GBP/USD: Technical analysis

Seems like strong resistance at a local maximum 1.6280/60, mentioned in the previous analysis, managed to hold back growth. Having tested level 1.6260. the price pulled back down, so it currently resides at levl 1.6220,30. Indicators are still turned up, albeit MACD divergence suggests to consider a possibility of a long-term stop for correction, or even for reversal, which may push the trades downwards, to support level 1.5890/80. The pull back will be even a higher possibility if the price fall below 1.6140/50. Until it happened, however, the price is very likely to reach target at level 1.6330/00, a trend line (green line) matching August and November 2009 maximums in the near future.

http://www.forex4you.com/images/site/GBP210211_1.GIF

Analysis by: Arkady Nagiev
Forex4you analyst

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