Forex4you Technical Analysis 23 August 2013

AUD/USD: Bounce unfolding

The aussie has bounced from support from an old trend-line and the S2 weekly pivot at around 0.8990 level. There will probably be a recovery from this level and a break above the 0.9042 highs would signal further upside to the next target at 0.9160, which is where the 50-day MA is situated. Of course there is the possibility of more downside first although overall I'm cautiously bullish, nevertheless if there was a break below the recent 0.8930 lows this would give bearish confirmation of a continuation to the former lows at 0.8846.

EUR/USD: Up-trend weakening

The overlapping waves at the highs are a sign of weakness and there will probably be a move lower down to the 1.3297 lows. A move below that level would be a very bearish sign and probably lead to a fall to around 1.3240. The other likely possibility is that the pair could simply continue sideways at the current support level. It is less likely the up-trend will resume right now (although it could do eventually), however, a break above the 1.3400 highs would confirm such a resumption with the next target at the R1 monthly pivot at 1.3508.

GBP/USD: Recovery underway

After stalling and pulling-back to the 1.5590 level Cable has started rising again. There is a strong possibility that this could mark a resumption of the dominant up-trend. A break above the current breakout highs at 1.5637 would provide strong confirmation that the trend higher was under-way again, with the next target higher probably situated at the R1 monthly pivot at 1.5768. The less likely alternative is that the correction has further to fall, although a move below the 1.5562 lows would be required to confirm such a breakdown, with the 200-day MA probably cutting short any substantial bearish moves early at 1.5514.

Analysis By: Joaquin Monfort, Forex4you Analyst - Forex Demo

Disclaimer:
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.

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