EUR/USD: Consolidating under R1 monthly pivot
The EUR/USD pair has pulled back after reaching resistance from the R1 monthly pivot at 1.3300. It has fallen to support at around 1.3250 but is recovering and will probably eventually reach the major trend-line at 1.3405. Given the important central bank news out this week it may continue sideways as traders stand aside in the run up to the FOMC on Wednesday and the ECB meeting on Thursday which could provide catalysts for a breakout. A decisive break above 1.3300 would be required for a continuation higher. Despite the dominance of the up-trend short-term a break below the 1.3238 lows could signal a down-turn and probably lead to a move down to the 1.3160s initially.
USD/JPY: Pausing at support
The USD/JPY has fallen to support from the monthly pivot at 97.95 and an old trend-line. The outlook is bearish short-term and a decisive re-break of the 97.76 lows would probably lead to a move down to 96.88 where the major trend-line from the 2012 lows is located. Upside seems less likely, however, and would require a move cleanly above the support line at 98.35 – with, say a break above 98.58 to provide bullish confirmation, although the 50-day at 99.15 would quickly cap any gains.
Analysis By: Joaquin Monfort, Forex4you Analyst
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