Forex4you Technical Analysis 03 March 2011

EUR/USD: Technical Analysis

The EUR/USD is still rallying and it will probably go a little higher perhaps to the band of resistance at the 1.3910 level. However, there is evidence of a possible decline on the horizon too. The exchange rate has reached an important resistance line at 1.3860, the move up from the Jan lows looks complete, and there is a demark sell signal. If prices drop they will probably reach the 1.3750 area initially where there is support from former lows and the trendline of the move up from the Jan lows.

http://forex4you.ninjacdn.net/charts/EURUSD030311.png

GBP/USD: Technical Analysis

The "bulls" failed to hold above the key resistance at level 1.6300/20. The price is currently pulling back downwards. At the moment it resides at level 1.6260/70. Indicators suggest considering a possible reversal, which gives reasons to expect a large-scale pull back downwards. If the tested level is breached, the price may then test support at 1.6220/10 and then at 1.6140/50. If both barriers are breached, growth in this instrument will probably be over, at least for the nearest outlook. Until support 1.6260/70 is safe, there are still chances for growth to the new maximums at1.6450/80, mentioned in the previous analysis. Support 1.5910/00 breakout will indicate a reversal to the "bearish" trend.

http://www.forex4you.com/images/site/GBP030311_1.GIF

Analysis by: Joaquin Monfort
Forex4you analyst

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