Forex4you Technical Analysis 28/07/10
GBP/USD: Technical Analysis
The basic assumption, that the growth rate would project around 1.5500, came true. As a part of alternative scenario, which provides a more average picture and allows some divergence, it’s also helpful to retrace the breach of current downtrend.
As of the end of July, the pair is trading at the threshold of important resistance 1.5500. In case the price fails to fix at this level, it will create a negative around 1.4960-1.4830. My advice would be to consider swing trading for catching a downward movement to hold positions from a week to a monthly period. Active earnings cushion and short stops are necessary.
Alternative: fixation above 1.5500 for more than 2 days will open 1.5800.
EUR/USD: Technical Analysis
The rise from the 22nd July looks nearly complete and there is a double top on the hourly chart. This gives a target for the probable decline of as low as 1.2850. It is highly unlikely prices will go above the R3 monthly pivot at 1.3116, for the rest of July (the rest of this week) as statistical evidence shows the R3 is breached in only 2% of months. In addition the dollar index has reached its 50% retracement point giving further indications of possible dollar bullishness on the horizon.
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.
The basic assumption, that the growth rate would project around 1.5500, came true. As a part of alternative scenario, which provides a more average picture and allows some divergence, it’s also helpful to retrace the breach of current downtrend.
As of the end of July, the pair is trading at the threshold of important resistance 1.5500. In case the price fails to fix at this level, it will create a negative around 1.4960-1.4830. My advice would be to consider swing trading for catching a downward movement to hold positions from a week to a monthly period. Active earnings cushion and short stops are necessary.
Alternative: fixation above 1.5500 for more than 2 days will open 1.5800.
EUR/USD: Technical Analysis
The rise from the 22nd July looks nearly complete and there is a double top on the hourly chart. This gives a target for the probable decline of as low as 1.2850. It is highly unlikely prices will go above the R3 monthly pivot at 1.3116, for the rest of July (the rest of this week) as statistical evidence shows the R3 is breached in only 2% of months. In addition the dollar index has reached its 50% retracement point giving further indications of possible dollar bullishness on the horizon.
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.
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