Forex4you Technical Analysis 23 March 2011

EUR/USD: Technical Analysis

Resistance 1.4250 level hindered growth, so the price now consolidates around level 1.4170/50. Indicators are turning down, suggesting to expect further decline. Yet, current pull back should be considered a correction within the up trend. Sideways movement in the range 1.4250 – 1.4130 is also quite a possibility, support level for this range may be moved lower, to 1.4060/50 level. A steeper decline will be considered as a signal to the change of sentiment in the market. Signals for reversal are the same - decline below 1.4010/00, and then level 1.3850/80 breakout - up trend line (blue lines). In case growth continues, the next strong resistance stands an 1.4300/1.4290 level, which matches with a long-term down trend line (red line).

GBP/USD: Technical Analysis

The price continued to grow, but only made it to 1.6400 level and then pulled back downwards, so now it resides at 1.6320/10. Indicators changed direction, suggesting further pull back down. If trading moves below the previously breached long-term down trend line (green line), we'll consider it as a sign of the weakening "bullish" potential. Until it happens, growth to 1.6450/60 or even to 1.6570/90 is still the highest possibility. 1.6140/50 – 1.6100 support range breakout would indicate a change of sentiment.

Analysis by: Arkady Nagiev
Forex4you analyst

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.