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Forex4you Technical Analysis 22 February 2011

Discussion in 'Forex Daily News & Outlook' started by forex4you, Feb 22, 2011.

  1. forex4you

    forex4you New Member

    Jul 13, 2010
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    EUR/USD: technical analysis
    The EUR/USD has rolled over and swiftly fallen to key support at the trendline from the 14th Feb lows. It may be there will be a correction from this level as it is also the 61.8% Fibonacci retracement of the previous rally. Counting the Elliot waves in the fall we are either still in 3 or perhaps have begun wave 4. This morning there was a bounce which could be a nascent wave 4, with a likely target of 1.3605. However, there is also a chance the exchange rate could fall again or go sideways. A fall would find support at 1.3530 and strong support lies at 1.3445.

    GBP/USD: technical analysis
    Previous assumptions about further correction turned out to be correct - the price continued to decline and it's currently testing level 1.6140/50, mentioned previously as the target on the way to level 1.5890/80. MACD and R% indicators suggest a decline, albeit SS is still being overbought, which somewhat offsets expectations of the "bearish" trend. Nevertheless, if the tested level is breached, we'll be expecting the price to reach support level 1.5890/80. Reversal to growth will suggest target level test at 1.6330/00 – long-term trend line (green).

    EUR/USD: technical analysis
    Resistance level 1.3720/10 turned out to be strong as expected and triggered a big pull back downwards. Trading is currently carried out at 1.3540/50. Decline below support level 1.3630/00, mentioned previously, indicates the weakness of the up trend and suggests to consider a reversal to the "bearish" trend. Indicators are turning downwards, which gives even more reasons to expect further decline in this pair. However, the final signal for the bearish trend will be decline below level 1.3450/60, which can be rather challenging strong support in the way - level 1.3500. Nevertheless, even with the current projection the "bulls" still have good chances to regain strength and bring the price back to the up trend.

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