Forex4you Technical Analysis 24 June 2013

EUR/USD: 50, 100 and 200-day MA's supporting

Eurodollar has found support from the 50-day Moving Average at today's lows and it has rebounded. The support is so tough it will probably lead to a strong correction. Apart from the 50-day MA there is also the 100 and 200-day MA's at the same level. It is quite rare to find a situation where all three coincide. If price action shows a reversal, then a clean break above 1.3120 would add bullish confirmation and lead to a probable move up – first to resistance at 1.3160 and possibly higher. It would require a strong move below 1.3055 to decisively cut through the cluster of MA's, although there would not be far to go before reaching the monthly pivot at 1.3010, and then a major trend-line at 1.2995.

USD/JPY: Signs of Weakness in Recovery

The USD/JPY pair is still rising and it could still continue higher with an eventual target at the underside of the previous rising channel as well as other resistance at 99.25 . However, there are now signs of weakness creeping in on the daily chart, which is forming a possible shooting-star candlestick - although the day is not over so the pattern is not yet fixed, nevertheless if it does then it might be the beginning of a resumption of the down-trend. The current correction could be an Elliot 4th wave, and after it ends we could get wave 5 back down towards the recent lows at 93.78. There is support from trend-lines at 97.50 and 97.05; and a decisive break below 96.90 would probably lead to a move down to a target at 95.50 initially.

Analysis By: Joaquin Monfort, Forex4you Analyst

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.

Views: 20


You need to be a member of My Forex Space - Online Forex Trading Community to add comments!

Join My Forex Space - Online Forex Trading Community

Featured Brokers

© 2019   Created by Sam Wexler.   Powered by

Badges  |  Report an Issue  |  Terms of Service