Forex4you Technical Analysis 18 Feb 2011

EUR/USD: Technical Analysis

The exchange rate rose as anticipated and touched the upper channel line of the move up and the trendline down off the February 2nd highs at 1.3625. This was a crucial point of resistance which led to a minor reversal in trend. Currently it is falling quite fast although it may pause before falling further. The trendline of the correction at 1.3500 provides a probable target, whilst a stronger move might even reach the clusters of support at 1.3440.

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GBP/USD: Technical analysis

Previously forecast growth in this pair continues. The price rose to 1.6220/10. Indicators are turned up, suggesting further growth. The target is the same - level 1.6330/00 – a trend (green) line, which links August and November 2009 maximums. However, it's worth noting, that strong resistance stands in the way around local maximum at level 1.6280/60. If the "bears" fail to hold back growth here, the price may test previously mentioned target level today. A reversal to a down trend will recommence in case level 1.5990/80 is breached.

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Analysis by: Forex4you.com written by Forex4you analyst

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