EUR/USD: Consolidating, Downside Bias
This pair has moved sideways this morning so far giving no indication of future direction. Currently there is resistance above price at 1.2920 from the 50 and 100-hour MA's and strong support at 1.2815 from weekly and monthly pivots. The pair has drifted out of the down-sloping channel but there is no upside impetus. A break above 1.2995 would signal a move up to 1.3060, filling the gap; downside is limited by 1.2815. Overall the picture remains bearish, however, with an unmet target at 1.2600, calculated from the first break of trend-line.
USD/JPY: Strong Support Reached
The trend today is to the downside. The pair has broken below the major support and resistance line at 94.55 and has just bounced from stronger support from a long-term trend-line and the monthly pivot. There is substantial support in lower 94s and a daily close below the trend-line at 94.15 would be required to mark a break of trend, but that would open up a downside target of 92.00. Alternatively a decisive breach of the support-turned-resistance level at 94.55 would be required to mark a trend-change higher targeting 96.20.
Analysis By: Joaquin Monfort, Forex4you Analyst
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