Technical analysis on EU,GU and majors

[bhanu545]

During yesterday’s trading the GBP/USD currency pair confirmed our concerns over possible resumption of dynamic downside movement. At the same time, this decline became avalanche after the release of the FOMC announcement, and the 5th wave in the estimated 3rd is probably prolonged. If so, targets of the whole downtrend initiated August 19 can be moved to the 53 figure level. 

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The euro – United States dollar pair, there is a very high probability for the start of a corrective move upwards in the direction of price levels in the region of 1.3740.
A small recovery in the markets will enable the euro – United States dollar pair to move back the important resistance level in the region of 1.4000. This is will also be the test level for the pair with regard to its ability to continue onwards and begin a new upwards trend.


Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate has bounced on the lower limit of its medium term bearish channel in 1.5320 and approach to the intermediate resistance of this one in 1.5470. A break of these levels would allow it to reach the upper limit of its channel to 1.5640.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.5470 with a 1st objective of 1.5580, then 1.5640. A break in 1.5440 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate is currently testing the intermediate support of its medium term bearish channel in 1.3390 suggesting a rebound. However a break of these levels would entail a return to the lower limit of its channel to 1.3320.

According to previous events, the market indicates a bullish opportunity on the levels of 1.3390 with a 1st objective of 1.3490, then 1.3530. A break in 1.3360 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

Slow movement of the GBP/USD to the upside can be interpreted as the end of downside trend section within the 3rd wave, in the 5th. If so, after the end of this movement in favour of the British currency the price might make an attempt to test the 53 figure level again. At the same time it is quite possible that this testing will initiate the beginning of a continuous upside correction.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The pair euro-dollar managed to lose about 1000 points since the outbreak of the current crisis, four months ago. From a technical perspective, the pair currently operates above the 1.3560 weekly pivot. In the short term there are good chances the start of an upward corrective movement towards the 1.3800 price level. and even more to the 1.4150 resistance level.
This is also the test point for the pair in their ability to move forward and begin a new uptrend. Be alert to a close below 1.3500 would negate our pespectiva bullish about the pair.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

In general as expected, during yesterday’s trading the GBP/USD currency pair continued to develop its upside correction. Thus we can suppose that the price is forming the inner wave structure of the 4th wave of the whole downside trend initiated August 19. At the same time, because of the extreme prolongation in the 3rd wave the future 5th will probably become shortened by trying to test the 53 figure level.
Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The EUR/USD currency pair is trading with a slight rise this week after it could not break the support level at 1.3427.
Earlier in a weekly graph the EUR/USD formed Dark Cloud Cover candlestick combination indicating downside movement confirmed further.
This combination shows that the pair dropped sharply after an attempt to advance to the resistance level 1.4700, which means that the bears started to increase their influence.
Further decline is supported by the RSI indicator demonstrating a rollback from the overbought level 70.0.
Break of the support level 1.3969 will denote that this point of view is correct. In this case we should expect a decline to the support level 1.3427 where the Fibonacci correction level 50.0 is also located. Its break will target the pair to 1.2869.
It is worth mentioning that stop loss should be placed slightly above the resistance level 1.4700 as its break will target the pair to 1.4900.

Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate approaches to the lower limit of its medium-term bullish channel in 1.5600 suggesting a rebound. However a break of these levels would release a large potential of drop and initiate a new trend.

According to previous events, the market indicates a bullish opportunity on the levels of 1.5600 with a 1st objective of 1.5700, then 1.5720. A break in 1.5570 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rates approach to the upper limit of its medium term bearish channel in 1.3690 suggesting a decline. However a break of these levels would free up significant potential and initiate a new trend.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3690 with a 1st objective of 1.3800, then 1.3840. A break in 1.3660 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011