Forex4you Technical Analysis 24 Feb 2011

EUR/USD: Technical Analysis

EUR/USD quite bearish short term as the exchange rate is currently bumping up against resistance from the upper channel line of the recent move. Wave patterns also point to the conclusion of an Elliot wave at or near the current highs. There is a bearish Demark setup on the 4-hour chart. Prices are likely to fall and when they do 1.3700 might support initially although substantial support doesn’t kick in until you reach 1.3620 where the trendline from the lows of the 10th January is. A push higher targets resistance at the old highs at 1.3860.

http://forex4you.ninjacdn.net/charts/EURUSD240211.png

GBP/USD: Technical analysis

The strength of resistance at 1.6260/70 triggered a sideways consolidation, as expected previously. The price remained within the range 1.6270- 1.6140/50. Trading is currently carried out at 1.6170/80. Indicators suggest further sideways movement within the range. Target level 1.6330/00 test is still a possibility. At the same time, MACD divergence indicates that a large-scale pullback is about to commence. The first signal for that will be received when the trades hold below support level 1.6140/30, which means that revised uptrend line (red line) will be breached as well.

http://www.forex4you.com/images/site/GBP240211.GIF

Analysis by: Arkady Nagiev
Forex4you analyst

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