Forex Technical Analysis on Majors

Stoyan Mihaylov from www.deltastock.com at 11/05/09

Current level-1.4818

EUR/USD is in a broad consolidation, after bottoming at 1.2331 (Oct.28,2008). Technical indicators are neutral, and trading is situated above the 50- and 200-Day SMA, currently projected at 1.4134 and 1.3523.
  
With the break above 1.4850 resistance, the downtrend from 1.5063 was confirmed to be completed, so there is no current trend on the 2 and 4 h. charts. Nevertheless, the bottom at 1.4623 was a test of the 50-day SMA on the daily chart and the fact, that this test failed is a signal, that the major uptrend is intact and new highs are to be expected. Intraday bias is slightly negative for 1.4777 and we expect current corrective slide from 1.4910 to be limited above that zone before next leg upwards to 1.5063. Crucial on the downside is 1.4735.

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Current level - 90.33

A short-term bottom has been set at 87.12 and a large consolidation is unfolding since. Trading is situated below the 50- and 200-day SMA, currently projected at 94.86 and 94.84.

Our target at 91.30 was precisely hit and the pair reversed, breaking below 90.56 crucial support. The overall bias here is extremely negative for 89.82, en route to 88.83 with a risk-limit above 90.56.

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Current level- 1.6501

The pair is in a downtrend after peaking at 1.7042. Trading is situated above the 50- and 200-day SMA, currently projected at 1.6454 and 1.5258.
   
Yesterday's uptrend broke through 1.6530 dynamic resistance and peaked few pips below 1.6604 high. Current intraday bias is negative, aiming at 1.6438 and a break there will target 1.6250 main support zone. We are rather neutral here, due to the trendless dynamics in the 1.6250-6605 zone. A break above 1.6604 will confirm a bullish set-up on the pair, towards 1.6752 and beyond.