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

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