Forex4you Technical Analysis 09/11/10

EUR/USD: Technical Analysis

The exchange rate has been falling and it may carry on until it reaches a substantial layer of support around 1.3800. Nearby 1.3806 is also the objective of yesterday’s flag pattern, so further downside may well halt there. We have also had a complete 5 Elliot wave impulse pattern down, which began at the 1.4085 highs achieved yesterday morning. There is a chance, therefore of a correction off this wave, which may occur now or at the 1.3800 support levels. This could carry the exchange rate back up to resistance at 1.3885, or perhaps higher.


http://forex4you.ninjacdn.net/charts/EURUSD091110.png

GBP/USD: Technical Analysis

The exchange rate has fallen from the 1.62 highs made on the 4th of November. It has formed a complete impulse pattern down with 5 waves and this could be the point where there is a correction. Initial targets might be the trend-line down from the highs of the 4th at 1.6150 and then the 50% retracement of the move down at 1.6180. Further downside could lead to 1.6041 initially, where price might intersect the trend-line up for the October rally. The monthly pivot at 1.5931 could also provide support.

http://forex4you.ninjacdn.net/charts/GBPUSD091110.png


Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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