Technical Analysis 22/01/10 of FXCBS

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

Friday Jan 22, 2010

Previous session overview

The euro dollar pair inclined slightly recording a high of 1.41574 and a low of 1.40663, having the union currency trading around 1.41442.

The pound dollar pair, it is consolidating between 1.62800 and 1.61660 recording a low of 1.61667 and a high of 1.62844, while the pair is currently trading around 1.62762.

Finally, the dollar weakened against the Japanese yen recording a low of 89.781and a high of 90.540, and it is currently trading around 90.343.


Market Expectations

EUR/USD :
The support level 1.40600 for the Euro against U.S dollar seamed a very strong stand, which lead the pair to increase in corrective movement, the positive signals which was shown through Stochastic helped the pair to raise, we expect today that this corrective will continuo to the level 1.42000, but we must note that if the pair penetration the mentioned support level our expectation will be deleted.

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

GBP/USD :
The pair sterling against the U.S. dollar rose to 1.62701 to gain enough determination to support the continuation of the landing, we expect today's downside trend for a couple to targeted levels of 1.60450, and this expectation needs to close four hours candle below 1.62850.

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

USD/JPY :
The dollar against yen built a base on 91.900 to start the awaited bearish wave yesterday, meanwhile, momentum indicators are showing oversold signs that are forcing the pair to fluctuate before resuming the expected bearish direction over an intraday basis. The primary target is around 87.750, keeping in mind that trades must remain intact below 90.921 to maintain chances of achieving the expected descend.

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

Senior Analyst / Ali Hasan /FXCBS

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