Technical Analysis 20/01/10 of FXCBS

This is Technical analysis daily and provided by specialists and analysts from FXCBS

Wednesday Jan 20, 2010

Previous session overview

The euro dollar pair declined sharply recording a low of 1.41661 and a high of 1.42949, having the 16 nation's currency trading around 1.41992.

The pound dollar pair, it declined as well recording a low of 1.62744 and a high of 1.63705, having the royal currency trading around 1.62778.

Finally, the dollar yen pair is consolidating between 91.359 and 90.881 recording a low of 90.880 and a high of 91.359, while the pair is currently trading around 90.912.



Market Expectations

EUR/USD :
Euro against U.S dollar fell sharply at the beginning of the trading today, after it breakthrough the support point 1.42900 and closed four hours candle below it, we expect today more decline for the pair to the first target at 1.40500 then to the level 1.39650, with the possibility of some volatility in price before this decline to get rid its saturation in selling process, which That emerge from the Stochastic.

http://www.fxcbs.com/newsletter/images/EURUSD.gif

GBP/USD :
The pair sterling against the U.S. dollar also fell with the start of trading, approaching the central support level 1.63100, we expect this day more landing to the first target at the level 1.61650 then to the level 1.60450 , taking into our account the positive signals emerge from the stochastic indicator.

http://www.fxcbs.com/newsletter/images/GBPUSD.gif

USD/JPY :
The dollar versus yen managed to breach resistance for the descending short term channel, we see that the expected direction for today is a bullish correction, but followed by the overall bearish direction continuing. Not that if 90.500 is breach it will cancel out the possibility of an expected bullish correction.

http://www.fxcbs.com/newsletter/images/USDJPY.gif

Senior Analyst / Ali Hasan /FXCBS

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