Technical analysis on EU,GU and majors

[bhanu545]

The EUR/USD pair is about to reach 1.32. It is necessary to consider the speech of ECB president Mario Draghi announced the monetary policy of the state on Thursday. This may be decisive for the future of the Euro.

In technical terms the euro is trading far below the downtrend line, but according to Momentum indicators and Range provides the bearish signals and a possible imminent correcion. On the other hand if the euro would break the downtrend line and the negotiation of today closed above the 1.3280 level. This fact points that the euro continued its upward trend to 1.3370; therefore selling is recommended at 1.3240 level.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is getting closer to the lower limit of its medium term bullish channel at 1.6190 making a rebound possible. However, a puncture of this level will release good potential and initiate a bearish channel.

Technical indicators give buy-signals supporting the assumption of a retracement soon. Bollinger bands have greatly tightened in recent days showing a slow down of the volatility and the imminence of a violent movement.

According to previous events the market will give a bullish opportunity at the level of 1.6190 with the 1st objective at 1.6250 and then at 1.6270. A break through 1.6170 will alter this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The Euro - U.S. dollar pair falls sharply during the European trading session on Wednesday because of the unemployment data in Germany. Yesterday the pair was trading in the negative area. Thus we saw a bearish correction.
If we look at the chart we can see that the pair has broken its uptrend line and in the short term it is likely to continue the downward trend. In the medium term it is now near a weekly support level and can give a correction upwards.
Therefore, we recommend selling on the Pullback to its uptrend line that has been broken with the targets to 1.3042.
Trend indicators show a deeper fall in the long term.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The British pound was trading slightly lower, although it had a very strong support at 1.6170. This level had been acting as a strong resistance for a few months, which now became a strong support.
Therefore, if there were a pullback to the maximum - 1.6280 – it will be recommend to sell at that level or if the pair breaks a strong support - 1.6170 - and closes below that level, we recommend selling in both cases with the objectives at 1.6003.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The euro - U.S. dollar pair is under pressure below the weekly support, although it is likely to be oversold and to bounce towards the first weekly support line of 1.3150, or maybe to 1.3200 (PPV). At these levels we recommend to sell with the target at 1.3045.
Momentum indicators and Range are showing bearish signals.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is presently testing the intermediate resistance of its medium term bullish channel at 1.3180 and is likely to decline. However, a breakdown of these levels will release significant potential enabling to reach its upper limit in point 1.3290.
Technical indicators do not provide clear signals but s long as the resistance is not broken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expected to stabilize soon.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.3180 with the 1st targets seen at 1.3240 and 1.3260 levels. Incase the level1.3160 is broken through, the proposed scenario will be cancelled.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The British pound was traded at 1.6185 against the dollar, tending slightly bearish an the daily chart near the strong support 1.6170; the breakdown of this level could change the course of crossing the American session. On the other hand, a return to the recorded high could be a clear opportunity to sell in the correction. We believe that the upward trend of the pound will not last for long time.

The indicators show an overbought market. The correction is expected to continue till the beginning of the next week.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

Wave marking analysis:
On Friday during the Asian and European sessions the EUR/USD pair completed the wave 2 (or B), resumed the descending movement and by the end of the day had been fixed near the point 1.3080. Such drop of 100 pips from the daily high looks rather strong, so the downside movement is likely to reach the level of figure 30. At the same time it is necessary to mention that in case this movement develops as a correction in relation to the part of the trend of April 15 and May 1, the price can pass though this strong support level again.



Targets for resumption of the descending part of the trend within the wave 3 in C in 3 or C:
1.3064 – 61.8% of Fibonacci
1.2996 – 100.0% of Fibonacci

Targets for the wave 4 in 3 or C:
1.3087 – 23.6% of Fibonacci
1.3145 – 38.2% of Fibonacci

General conclusions and trading recommendations:
The Friday’s descent points at the continuation of the development of the wave 3 or C. The targets for the current downward movement are seen at 1.3064 and 1.2996 which is equal to 61.8% and 100.0% of Fibonacci. On the smaller level we can observe the wave 3 or C; the wave 2 or B has been completed. The location of the MACD near the zero level indicates that the pair has an opportunity to decline with 1.3000 seen as possible target.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is presently testing the intermediate resistance of its medium term bearish channel at 1.6140 and is expected to decline. However, a break through these levels will release good potential enabling to reach its upper near 1.6190.

Technical indicators do not provide clear signals but as long as the resistance level is unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong recent decline. the situation is expected to stabilize in the nearest future.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.6140 with firts targets seen at 1.6190 and 1.6220. In case the level 1.6120 is passed though, the proposed scenario will be cancelled.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.3080 and seems to initiate a decline. However, a breakdown of these levels will reveal siginicant potential enabling to reach its upper limit in the point 1.3270.

Technical indicators do not provide clear signals but as long as the resistance is unbroken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong recent decline these. The situation is expected to stabilize soon.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.3080 with the 1st objectives seen at 1.3140 and 1.3160 levels. In case the level 1.3060 is passed through, the prospect scenario will be cancelled.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012