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Forex4you Technical Analysis 1 March 2011

Discussion in 'Forex Daily News & Outlook' started by forex4you, Mar 1, 2011.

  1. forex4you

    forex4you New Member

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    GBP/USD: technical analysis
    The price not only tested a long-term trend line (green line), but also breached it. The price resides within 1.6330/00, mentioned previously as the target range for frowth in this pair. Indicators are all "bullish", which gives reasons to expect the price to procced with the up trend and rise even above this range. Should the price manage to hold at these levels, next strong resistance in the way, level 1.6450/80, is likely to be tested. Taking into account significant resistance at 1.6300/30, which has proved its strength in autamn and winter 2010, further growth in this pair is questionable at the moment, since there is also the risk of a pull back. So, the price may begin to correct from the current levels. On the other hand, if the trades fall below 1.6140/50, we'll consider the "bearish" trend as dominating. Decline below level 1.5910/00 will indicate a reversal.

    [​IMG]

    GBP/USD: technical analysis
    The price not only tested a long-term trend line (green line), but also breached it. The price resides within 1.6330/00, mentioned previously as the target range for frowth in this pair. Indicators are all "bullish", which gives reasons to expect the price to procced with the up trend and rise even above this range. Should the price manage to hold at these levels, next strong resistance in the way, level 1.6450/80, is likely to be tested. Taking into account significant resistance at 1.6300/30, which has proved its strength in autamn and winter 2010, further growth in this pair is questionable at the moment, since there is also the risk of a pull back. So, the price may begin to correct from the current levels. On the other hand, if the trades fall below 1.6140/50, we'll consider the "bearish" trend as dominating. Decline below level 1.5910/00 will indicate a reversal.

    [​IMG]

    EUR/USD: technical analysis
    The EUR/USD pair continues to rise. There has been no sign yet of a change of trend so the waves may continue like this higher. Certainly the one we are in now should, given the MACD is still strong and there is no divergence with price, so we might expect it to reach its target at 1.3855 or even to go to 1.3860 or higher. After that it is possible the trend may start to break down and the exchange rate may fall.

    The move up from the January lows looks complete and the 67-day EUR/USD cycle has reached day 66 so a reversal may be imminent.

    [​IMG]

    Forex
    Analysis 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.
     
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