AUD/USD: Reaching major support
The aussie's short-term down-trend has reasserted itself. The latest move lower, however, lacks momentum. Nevertheless it could slide lower to perhaps 0.8880, with a break below 0.8930 providing confirmation. Further downside will be impeded, however, by support from an old trend-line at the 0.8930 lows, which will be difficult to break below, and it is very possible the pair could bounce from this trend-line and begin to rise again. There is an eventual bullish target at 0.9440 but resistance from the border line of a sort of wedge pattern at 0.9175 provides a closer objective. Price is still subdued and a rise above the 0.9000 would provide useful confirmation of more upside.
EUR/USD: Consolidation range extends
The EUR/USD remains in a consolidation range above a major trend-line. The fact it has held so long above the trend-line is a sign that it will probably continue higher and full-fill its upside target, initially by reaching 1.3508 and then eventually probably 1.3950. A re-break above the 1.3409 highs could provide confirmation of such a move. It is possible, however, that the pair could break back down and a move below the 1.3298 spike lows could signal a reversal of the short-term trend to bearish with a target at around 1.3165.
GBP/USD: 200-day MA supporting
The GBP/USD pair has fallen to support from the 200-day MA at 1.5514. It is possible it could bounce from here and start to move higher again. There is also support from the R1 monthly pivot not far below at 1.5483. The overall short-term up-trend is still intact and the recent break above the major trend-line was a bullish sign and further supports the possibility of a resumption of the up-trend. A rise above 1.5636 highs would provide confirmation of such a move, targeting the 1.5716 highs and then eventually probably the long-term up-side target at 1.6000. More down-side is capped - not just by the monthly pivot at 1.5483 - but by the just-broken trend-line at 1.5463.
Analysis By: Joaquin Monfort, Forex4you Analyst
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