Forex4you Technical Analysis 24 July 2013

EUR/USD: Continuing to rise

Eurodollar continues to rally higher after the recent break of the down-sloping trend-line from the June highs. It will probably continue up to an eventual target at 1.3405, although the R1 monthly pivot situated at 1.3300 constitutes a nearer target, since it is likely to provide strong resistance to any up-moves. There is also the potential for pull-back into support in the 1.3150 area, although the short-term up-trend would be expected to resume from there.

USD/JPY: Recovering after channel break

The USD/JPY pair is rising steadily in a channel. The move up from the June lows is probably a Elliot 5th wave which will probably eventually reach to the 101.55 highs at least, or even to resistance at 102.00 from the R1 monthly and the R2 weekly pivots. Recent weakness, however, led to a breakdown out of the underside of the channel. Price has returned back up to about the level of the lower channel line again where it is currently pressing. Given the up-trend is dominant I would expect a decisive move above 100.16 next, which would confirm a move back up within the channel to the upper border at 101.25. However, we cannot ignore the breakdown out of the channel and a relapse below 99.13 would probably continue to support at 97.90.

Analysis By: Joaquin Monfort, Forex4you Analyst

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