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Forex4you Technical Analysis 28 February 2011

Discussion in 'Forex Daily News & Outlook' started by forex4you, Feb 28, 2011.

  1. forex4you

    forex4you New Member

    Jul 13, 2010
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    GBP/USD: technical analysis
    The price failed to reach support level 1.5990/80, mentioned previously as the first target. Level 1.6030/20 stopped a decline and triggered a reversal to growth. At the moment trading is carried out at 1.6190/1.6200. Indicators turned up, although SS remains in a down trend, suggesting a weak bullish potential. However, there is still a possibility that the price rises to the local maximums at 1.6270 and even tests a long-term trend line (green line) around 1.6290/1.6300. Decline below level 1.6140/50 will bring back the bearish trend. Fall down below 1.5910/00 should be considered as a signal for reversal with a possibility for a medium-term decline.


    EUR/USD: technical analysis

    The pair declined a bit lower than expected. Strong support was found at level 1.3720/10, then growth recommenced, so the trading is currently carried out at level 1.3820/25. Indicators are "bullish" again, which gives reasons to expect further growth. Ascension to level 1.3900/10 has become even more of a possibility, albeit the final signal for this event will be received if the trades hold above 1.3850. Until this resistance level is breached, the price will be most likely correcting sideways, within the range 1.3850- 1.3720/10. Should the price fall below support 1.3720/10, the "bearish" trend may become dominating.


    EUR/USD: technical analysis
    The EUR/USD has rallied from the 1.3750 lows reached on Friday and is now nearing the old 1.3837 highs. It has just reached the upper channel line of the move off the 14th Feb lows and here it may fall back, perhaps to 1.3785, in a diminutive 4th wave. Once complete wave (V) of 5 should begin and take us above last week’s highs to perhaps 1.3855, which is just under key resistance at 1.3860. The 67-day cycle on EUR/USD which has an 85% success rate at marking major changes in trend is in its 65th day, so an important reversal may be on the horizon too.


    Analysis by: Joaquin Monfort
    Forex4you analyst

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