Forex4you Technical Analysis 21 August 2013

AUD/USD: Meeting support

Resistance from the 50-day MA has pushed the aussie lower and it has reached support from an old trend-line and the S2 weekly pivot at the 0.9000. It will probably bounce from this substantial support level, possibly back up to 0.9100 initially, and if stronger then to the 0.9170s. The short-term bearish fall, however, is still intact and there are no major signs of reversal or bounce yet, although if today ends bullishly then there will be a hammer candlestick which will probably indicate more upside. A break above the 0.9048 highs would confirm a move up to 0.9100. Alternatively a decisive break below the 0.8998 lows would probably be a sign of bearish continuation down to, most probably to match the 0.8845 lows.

GBP/USD: Up-trend continues

Cable continues to rise and its up-trend remains intact. Last Thursday's break above the major trend-line boosted the bullish outlook and generated an eventual target of 1.6000. A more immediate target, however, would be the old highs and the R1 monthly pivot at around the 1.5760 mark. Although the up-trend dominates and will probable continue, there is the possibility of a pull-back to support at 1.5610, although this will probably be followed by a resumption of the up-trend afterwards.

EUR/USD: Pull-back in up-trend

The EUR/USD pair is pulling back, although yesterday's break above the major trend-line from 2011 means that the pull-back will probably only be temporary before the more dominant up-trend resumes, with an upside target at the R1 monthly pivot at 1.3508, and then possibly even up to 1.3950 eventually. A shallow pull-back would see the pair fall to just below where it is currently to 1.3365 and then resume its up-trend; a deeper correction could see it move all the way back to the trend-line it has just breached at 1.3300, before bouncing higher.

Analysis By: Joaquin Monfort, Forex4you Analyst

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