Forex4you Technical Analysis 22 Feb 2011

EUR/USD: Technical Analysis

The EUR/USD has rolled over and swiftly fallen to key support at the trendline from the 14th Feb lows. It may be there will be a correction from this level as it is also the 61.8% Fibonacci retracement of the previous rally. Counting the Elliot waves in the fall we are either still in 3 or perhaps have begun wave 4. This morning there was a bounce which could be a nascent wave 4, with a likely target of 1.3605. However, there is also a chance the exchange rate could fall again or go sideways. A fall would find support at 1.3530 and strong support lies at 1.3445.

http://forex4you.ninjacdn.net/charts/EURUSD220211a.png

GBP/USD: Technical analysis

Previous assumptions about further correction turned out to be correct - the price continued to decline and it's currently testing level 1.6140/50, mentioned previously as the target on the way to level 1.5890/80. MACD and R% indicators suggest a decline, albeit SS is still being overbought, which somewhat offsets expectations of the "bearish" trend. Nevertheless, if the tested level is breached, we'll be expecting the price to reach support level 1.5890/80. Reversal to growth will suggest target level test at 1.6330/00 – long-term trend line (green).

http://www.forex4you.com/images/site/GBP220211.GIF

Analysis by: Arkady Nagiev
Forex4you analyst

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