Technical analysis on EU,GU and majors

[bhanu545]

The spot rate is presenlty testing the intermediate resistance of its medium term bearish channel at 1.5410 and seems to initiate a decline. However, a breakdown of these levels will release a potential enabling to reach its upper limit near 1.5490.

Technical indicators provide buyers signals and evolving in the oversell zone confirms that the resistance level is expected to be passed through. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expetced 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 1.5410 with the 1st targets seen at 1.5470 and at 1.5490 levels. In case the level 1.5390 is passed through, the prospect scenario will be cancelled.

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

[bhanu545]

The spot rate is presently testing the upper limit of its medium term bearish channel at 1.2540 and is about to decline. However, a break through of these levels will reveal significant potential initiating a violent bullish trend.

Technical indicators provide sellers signals but as the resistance remains unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong recent increase. 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 1.2540 with 1.2600 and 1.2620 seen as first targets. In case the level 1.2520 is passed through, the proposed scenario will be cancelled.

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

[bhanu545]

The GBP / USD pair has managed to ascend up to the 50 periods moving average around 1.5505, maybe waiting for the G7 managed to give relief to the sovereign debt crisis. Though at the end of the conference call it did not give clear signals that a solution has been found.

On a technical level we expect a correction towards the bullish channel of 4H; the level 1.5380 presents a good opportunity for buy-deals with targets seen at the 1.5700 level.

The momentum indicator is showing bearish signals, so the pair is expected to reverse.

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

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2520 and is likely to decline. However, a breakdown of these levels will reveal significant potential and initiate a violent bullish trend.

Technical indicators provide buyers signals but as long as resistance level is unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong recent increase. The situation is expected to stabilize soon.

Proceeding from previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2520 with the 1st objective seen at 1.2580 and 1.2600 levels. in case the level 1.2500 is passed through, the proposed scenario will be cancelled.

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

[bhanu545]

The Momentum indicator is entering the 100 area indicating a possible correcion. The agency Egan-Jones has downgraded the rating from the UK, to AA- from AA; the rating agency said the rating was reviewed due to a slowdown in GDP growth and the fact that recent data on balance payment is not too positive.
On the chart above we can see the level of 1.5640 and 1.5710 as a strong resistance level; a correction will probably take place at these levels. Therefore, we recommend selling at these resistance levels with objectives seen at the 1.5450 level. On the other hand, a breakdown of the 1.5710 level will be a signal for buy-deals with objectives seen at the 1.5900 level.

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

[bhanu545]

This morning the ECB left interest rates in the eurozone unchanged at 1%, as it was expected. This was taken optimistically and the euro managed to break the resistance 1.2583; presently it is trading above this level on the 4H charts. The pair is expected to rise towards 1.2635 and 1.2675 second weekly resistance. We recommend sell-deals at both levels with objectives seen at 1.2535 (Pivot Point). If the uptrend line is broken, it s recommended to sell up to 1.2400. Stop loss is to be placed above 1.2675.
We expect the formation of the second corrective wave. Then the uptrend will resume towards our medium-term target 1.3100

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

[bhanu545]

The British pound felt the impact of the words of Bernanke, the European crisis, and that splash of United States, Japan and the rest of Southeast Asia. This climate of uncertainty weakened the GBP/USD, which is now coming to the line of short-term uptrend.

In the 4 hour chart we notice that the price of GBP/USD is trading just above the uptrend line. The breakdown of this line will accelerate the fall to 1.5300 as the first objective.

On the other hand, if the pair closes above this level or above 1.5450 pivot weekly, we recommend buying with objectives to 1.5620, and above up to 1.58

The Momentum indicator is showing bearish signal.

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

[bhanu545]

The spot rate is currently testing the intermediate support of its mid-term bearish channel at 1.2510 suggesting a rebound. However, a break through this level will trigger a decline to a lower limit – 1.2260.

Technical indicators provide BUY signals supporting the assumption of a rebound. Bollinger bands have much tightened within recent days showing a decline in volatility and a strong movement.

According to the previous events, the market will provide a bullish opportunity at the level of 1.2510 with the 1st objective at 1.2570 and then at 1.2590. A break through 1.2490 will alter this scenario.

Performed by Albert Fitoussi, Analytical expert

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2680 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide sell-signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2680 with the 1st objective at 1.2740 and then at 1.2760. A break through 1.2660 will invalidate this scenario.

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

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5580 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide sell-signals and approaching overbuy zone supporting the assumption of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5580 with the 1st objective at 1.5640 and then at 1.5660. A break through 1.5560 will invalidate this scenario.

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