Forex4you Technical Analysis 21 March 2011

EUR/USD: Technical Analysis

Previous forecast, saying that price may continue its growth and test 1.4130/1.4170 levels turned out to be correct. Touching 1.4180/70 level, the price began to pull back downwards. At the moment, trading is carried out around levels 1.4150/55. Indicators say in favor of growth, albeit the readings are not all unanimous, which gives reasons to consider a possible pull back, that may grow into quite a long-term sideways movement within 1.4080/70 – 1.4180/70 range. Decline below 1.4010/00 may indicate that a pullback is very likely to become a reversal. Final signal for a medium-term "bearish" trend would be support 1.3850 and up trend line (blue lines) breakout with the following fixation below. Until the price breaches the above mentioned support levels, the "bullish" trend should be considered "dominating". In case growth continues, level 1.4250/60 is considered to be the next target.


GBP/USD: Technical Analysis

Growth, forecasted in this pair, turned out to be correct. The price ascended, and it currently resides at level 1.6230/40. Indicators say in favor of the up trend. The "bulls" are likely to finally reach the targets, mentioned in the previous analysis - levels 1.6280/1.6300, but only in case they manage to overcome a significant barrier – a long-term trend line (green line), which links August and November 2009 maximums. This resistance level has already proved itself as a strong barrier, and it can prove it this time as well. Decline below support 1.6150 will give reasons t doubt of the "bullish" potential. Decline below 1.5990/80 support level with the following fixation below will indicate the beginning of medium-term "bearish" trend.

Analysis by: Joaquin Monfort
Forex4you analyst

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