EUR/USD: Still consolidating at trend-line
The short-term up-trend remains intact and will probably continue, although there is s strong possibility of a temporary pull-back first. The current consolidation is at the level of the trend-line originating in 2011 and touching the January highs and this is providing substantial resistance. There is a possibility that we may get a move down as the consolidation unfolds, with a break below 1.3310 giving confirmation of pull-back to 1.3240. An upside break is eventually likely, however, and will take the pair clear of the trend-line and much higher. Confirmation would come from a break above the key 1.3380 highs (or more conservatively the 1.3416 highs). This will be a very bullish sign and lead to a move to 1.3508 where the R1 monthly pivot is situated, and eventually probably 1.3950.
The USD/JPY pair is broadly in a down-sloping channel and it will probably continue lower. It is making lower lows at moment and has just fallen from resistance made up of the 50-day MA at 98.35. It will probably continue sliding down with an eventual target at the major trend-line at 96.50. There it will probably encounter substantial support and possibly bounce.
Analysis By: Joaquin Monfort, Forex4you Analyst
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether forex trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.