EUR/USD: Nearing Major Support Level
The EUR/USD currency pair broke down and out of its ascending channel and has fallen strongly after the FOMC meeting yesterday. It has now almost reached support at 1.3225 from a combination of the monthly and weekly pivots. If will probably reach this level and bounce or at the very least consolidate. An old trend-line will probably provide resistance at around 1.3275 so the most probable scenario in the short-term is that we will get a sideways move developing between these two support and resistance lines.
The USD/JPY pair has risen strongly and broken through a down-sloping trend-line. It will probably carry on higher to the next level of resistance at about 98.90 which is the underside of the rising channel and the 50% Fibonacci retracement level. From there it will be tested and will probably consolidate or fall. Currently there are no signs of weakness in the up-trend which is still moving higher and a break above 98.28 would confirm a continuation to the upside, however, a pull-back to support at 97.05 is also a possibility.
Analysis By: Joaquin Monfort, Forex4you Analyst
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