AUD/USD: Possible reversal pattern
The aussie is consolidating in a basing pattern. It has technically broken above the descending trend-line, which has generated an up-target of 0.9445, however, it has not followed through very strongly after the break. Nevertheless it will probably eventually rise, hitting the monthly pivot situated at 0.9345 first followed by the 50-day MA at 0.9421. The pattern at the lows could be an inverted head and shoulders and a decisive break above the neckline at 0.9285 would indicate a rally to a target at 0.9590. Alternatively a break below the right shoulder at around 0.9220 might make the outlook more bearish, and lead to a revisiting of the 0.8997 lows.
EUR/USD: Break confirmed
Yesterday's bullish close confirmed the break of the down-sloping trend-line from the June highs. After the break the pair is now expected to rise to an eventual target at 1.3405, although the R1 monthly pivot situated at 1.3300 is expected to provide substantial resistance as well. Looking at the action on the hourly chart, and we see a more bearish picture: there is a double top pattern forming up against the R1 weekly pivot at 1.3205, and if price falls below 1.3175 it could signal what will probably be a pull-back to perhaps 1.3150 and support from the upper border of the triangle. From there, however, the up-trend will probably resume and move higher again, up to resistance at 1.3300.
GBP/USD: Monthly pivot met
Cable has rallied up fast and reached highs of 1.5883, which is not far below its eventual target generated from the break of the trend-line at 1.5435. The up-trend is still intact and it will probably continue up to 1.5435. There are bearish short-term indications, however, such as the substantial resistance from the monthly pivot just above price at 1.5377, another is the bearish double-top pattern on the hourly chart. It will probably pull-back to the trend-line at 1.5330 and then either recover of break below, with the latter probably leading to a move down to the 50-day MA at 1.5275.
Analysis By: Joaquin Monfort, Forex4you Analyst
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