Forex4you Technical Analysis 11 May 2011

EUR/USD: Technical Analysis

The EUR/USD pair is still consolidating after plummeting to fresh lows on Monday. There is a possibility it could bounce back as far as the 1.4500s where here is an important level of support and resistance at 1.4520 and the 0.001x3 point and figure chart also has a target at 1.4590. The steepness of the move down, however, suggests the likelihod of a resumption of the downtrend eventually, whilst a break below the recent low at 1.4260 would be a particularly bearish signal.

http://www.forex4you.com/images/site/EUR110511.GIF

GBP/USD: Technical Analysis

Nothing has changed in this instrument - trading remained in a sideways range and the price is currently testing 1.6390/1.6400 resistance level again. Previous comments are still relevant - reversal to the uptrend channel (red lines) would be the first signal to expect growth in this pair to recommence. On the other hand, indicators now oscillate and don't say in favor of a downtrend anymore, which gives enough reasons to consider a possible trend line test around 1.6450 level. The "bearish" scenario and 1.6220/30 level test has all chances to take place as well.

http://www.forex4you.com/images/site/GBP110511.GIF

Analysis by: Joaquin Monfort
Forex4you analyst

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