Forex4you Technical Analysis 28 June 2013

EUR/USD:  Signs of Recovery

The EUR/USD is slowly channelling higher. A break above the next trend-line at 1.3065 would be a very bullish sign and could indicate the start of a reversal, however, the thick knot of Moving Averages consisting of the 50, 100 and 200-day MA's situated in-between 1.3070 and 1.3085 offer strong resistance. A break above these MA's at 1.3090 would open up a move higher to the upside target at 1.3175. There is a bullish harami marking the lows on the daily chart supporting a bullish view and potentially signalling a reversal. Today has been an up-day so far. However, resistance might hold a bit longer and we could initially see a move back down to the lower channel line at 1.3015, although it would require a decisive break below that to signal a deeper penetration to 1.2962.

USD/JPY: Touching 50-Day MA

The USD/JPY pair continues to rise. It has just broken up through a trend-line and will probably now reach the next target higher at 99.42, although the 50-day MA at 99.20 could interrupt the climb temporarily. Another bullish sign includes a possible large inverted H&S at the lows, the neckline of which is just below the current price, indicating it may have been breached, or is in the process of being broken. This pattern has a target at the 103 highs. Overall a clear break above the 50-day would be critical, marking a major resumption of the bullish trend back up to the 103 highs (the target for the inverted H&S). Alternatively, a break below 98.20 could mark a breakdown and possibly cancel out the inverted H&S, resulting in a move down to 97.15.

Analysis By: Joaquin Monfort, Forex4you Analyst

Disclaimer:
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.

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