EUR/USD: Technical Analysis

The exchange rate is still moving down as part of the move which began at yesterday’s highs. It is currently trying to break through the trend-line drawn up from the lows made on the 20th. A decisive break lower would be expected to reach support at 1.3900 and then perhaps even to 1.3850. A move higher might be expected to reach the upper channel line at 1.4000.

Looking at the 4 hour chart it is possible to draw a diamond top pattern on the activity since the 7th October. The downside objective if the current move down makes a decisive break would be 1.3235. A move above the trend-line sloping down off the peaks at around 1.4065 however would negate the diamond reversal and might lead to a strong upside rally instead.




GBP/USD: Technical Analysis

The exchange rate is rallying up very strongly from the 1.5650 lows. It will probably continue until it reaches resistance at the 1.5950 highs from an old trend-line up from the September lows. It may even peak at the level of the R1 monthly pivot at 1.5990.




Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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