Forex4you Technical Analysis 11 March 2011

EUR/USD: technical analysis

We are witnessing a break of the major trendline from the January lows which has been providing support at 1.3800 so there is a strong possibility wave 4 still has further to go perhaps to 1.3740, which is a the key Fibonacci 50% retracement level or the pivot at 1.3700. A break above 1.3860 would be required to give a stronger signal that wave 5 was underway. Meanwhile the move lower continues.

GBP/USD: technical analysis

Decline below 1.6150/40 suggested the "bearish" trend as more probable. The price continued to decline and breached the next support at level 1.6100, which had been previosly anticipated as the key support for the "bearish" trend. Trading is currently carried out at 1.6030/20. Indicators are turned down, which may be considered as a sign of reversal, that eventually took place, and further decline. The next support stands at level 1.5980/90 and it has all chances to hold back a decline. However, sideways consolidation may begin from the currently tested level 1.6030 as well. Should the price rise above resistance 1.6150/40, reversal to growth will be a possibility.

Attachment 1415

EUR/USD: technical analysis

Previous forecasts seem to have been correct and support level 1.3780 turns out to be a strong barrier to hold back a decline. The price tested level 1.3775 and pulled back upwards. At the moment it resides at level 1.3830/40. Indicators are turned down, although the readings seem to be weakening, suggesting a sideways correction within the range 1.3850 – 1.37780/75. Level 1.3850 breakout with the following fixation above will indicate the "bearish" weakness and give reasons to consider reversal to growth. However, downward movement is more likely at the moment. When the anticipated consolidation is over, the price is likely to decline to the previously mentioned target at level 1.3740/20. The are also chances to see a down trend extending to even lower levels.

Attachment 1414

Analysis by: Joaquin Monfort
Forex4you analyst

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