Forex4you Technical Analysis 10 July 2013

EUR/USD: correction in down-trend

Eurodollar fell on Tuesday and decisively breached the S1 monthly pivot. It has paused to consolidate this morning at the 1.2760 level which is an old low from April and is showing signs of bullishness which could lead to a bounce to as high as 1.2840 temporarily where there is resistance from the monthly pivot and a trend-line. However, the down-trend remains dominant and should eventually resume, taking the pair down towards the next target at around 1.2660, followed by the longer-term target at 1.2550, calculated from the break of the major July '12 trend-line.

USD/JPY: reaching trend-line support

The USD/JPY pair has broken down below the trend-line drawn from the mid-June lows and reached another major trend-line drawn from the September '12 lows at 100.00. If we get a decisive break below this line then it will be a very bearish signal and open the way down, first to 99.40 where the 50-day is situated, and then eventually 98.30. Current trend-line support could impede downside, however, and lead to a sideways move unfold along the trend-line, with range highs at 100.50. I would want to see a break below the 99.77 lows ideally for ultimate confirmation of a breakdown, or at least some momentum on the break.

Analysis By: Joaquin Monfort, Forex4you Analyst - เทรด Forex

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