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Forex4you Technical Analysis 24 February 2011

Discussion in 'Forex Daily News & Outlook' started by forex4you, Feb 24, 2011.

  1. forex4you

    forex4you New Member

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    EUR/USD: technical analysis
    EUR/USD quite bearish short term as the exchange rate is currently bumping up against resistance from the upper channel line of the recent move. Wave patterns also point to the conclusion of an Elliot wave at or near the current highs. There is a bearish Demark setup on the 4-hour chart. Prices are likely to fall and when they do 1.3700 might support initially although substantial support doesn’t kick in until you reach 1.3620 where the trendline from the lows of the 10th January is. A push higher targets resistance at the old highs at 1.3860.

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    GBP/USD: technical analysis
    The strength of resistance at 1.6260/70 triggered a sideways consolidation, as expected previously. The price remained within the range 1.6270- 1.6140/50. Trading is currently carried out at 1.6170/80. Indicators suggest further sideways movement within the range. Target level 1.6330/00 test is still a possibility. At the same time, MACD divergence indicates that a large-scale pullback is about to commence. The first signal for that will be received when the trades hold below support level 1.6140/30, which means that revised uptrend line (red line) will be breached as well.

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    EUR/USD: technical analysis
    The price breached resistance level 1.3720/10, opening the gates to the local maximum at 1.3850, mentioned in the previous analysis. However, the price failed to pass through resistance at 1.3780/85, so it pulled back to level 1.3720/10, which now turned out to be a strong support. The trading has recently retraced upwards, so the price resides at level 1.3760/70 at the moment. Indicators are turned up, giving reasons to consider previous forecast to come true, so level 1.3850 and then 1.3900/10 will be probably tested soon. Reversal to the "bearish" trend is unlikely, although this alternative scenario may become more relevant when the trading tests resistance 1.3850.

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    Forex | Currency Trading
    Forex4you

    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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