Forex4you Technical Analysis 06/12/10

EUR/USD: Technical Analysis

The price not only tested, but also breached level 1.3310/00, mentioned previously. Then the price met a strong resistance at 1.3420/10, which is a bit below level 1.3460/50, the key resistance on the way up. Having pulled back, the trading is currently carried on close to support 1.3310/00. Attempts to breach down trend channel line (red lines) failed, which suggests the "bearish" moods and a possible reversal to a down trend. Indicators suggest this reversal too, indicating further possible decline to 1.3200/1.3190 as a part of correction to the previous growth. A lower decline will give reasons to expect a reversal to the "bearish" trend - the price may then fall to the new local minimum, around level 1.2960/70. Level 1.3460/50 -1.3490 breakout is still considered a signal to more significant changes in the market.

http://www.forex4you.com/images/site/EUR061210.GIF

GBP/USD: Technical Analysis

The price reached resistance level 1.5750/60, mentioned earlier, and even went a bit higher, to 1.5780, but it didn't manage to fix there, so it puled back and now resides at 1.5700/10. Indicators are turning downwards, giving reasons to doubt of the "bullish" potential. If a decline proceeds to level 1.5650/60, it will be considered a correction to the recent growth. If the trading goes below 1.5650 with the following fixation, we'll be expecting possible supports levels 1.5580/90 and then 1.5520 tests. Until the price falls beow 1.5650/60, the scenario for growth is a higher possibility.

http://www.forex4you.com/images/site/GBP061210_1.GIF

EURJPY: Technical Analysis

The exchange rate for the EUR/JPY failed to break the neckline of the Head and Shoulders pattern on the hourly chart and instead rebounded off the 111.00 highs to below the range lows at 109.85, finding support at a slanting channel line connecting the lows within the range. Price has posted a reversal hammer candlestick on the 50min chart and although it is a little too early to say this might be an opportunity to enter a small long position with a tight stop in an attempt to ride the rally back up into the range. An initial objective for a rally would be the monthly pivot at 110.80 or even slightly higher than the recent highs in the 111.00s. From an Elliot perspective we may have just completed wave 4 and be rallying up in wave 5 of the wave which started at the 30th November lows.

http://forex4you.ninjacdn.net/charts/EURJPY061210a.png


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

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.