Wednesday January 27, 2010 - 16:37:24 GMT
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Daily Technical Update GBP/USD in Short-term Range; EUR/USD Continues Decline
Daily Technical Update
January 27, 2010
(GBP/USD) Adjustment to Ranging Mode was Correct
- 4H and 1H: The latest adjustment for GBP/USD was
to turn the short-term outlook from bearish to ranging. The EUR/USD had
a stronger bearish indication through yesterdayâ€™s price action. (Refer
to Daily Technical Update 1.26.2010 GBP/USD, 1.26.2010 EUR/USD).
- The range is roughly between 1.6100 and 1.6270. The marketâ€™s very
weak second attempt to retest 1.610 should have cautioned against even
the conservative bearish outlook to 1.6050.
- The market is now at 78.6% retracement. There is still a chance for another swing up towards the 1.6270 resistance.
(EUR/USD) Projecting Bearish Continuation
- 4H and 1H: The EUR/USD price action is suggesting
a more bearish mode than the GBP/USD. There might be some pause in the
US session at it tests short-term support at 1.4030.
- The 4H stochastic is showing continuation of bearish momentum as it
turns back into the oversold zone. A swing projection of this scale
goes to 1.37.
- 1H: However, the price action has not been very
strong after the break of upsloping trendline. Perhaps this is due to
the bullish forces at 1.4030. A break below 1.40 will provide strong
confirmation of bearish continuation to the 1.37/38 projection.
- Daily: The daily chart reminds of the higher
degree swing projection which goes to 1.37 as well. This is 50%
retracement zone and should provide some support.
- Similar to the 4H stochastic reading, the Daily also shows bearish continuation momentum.
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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