EUR/USD: Technical Analysis
Eurodollar broke out of its multi-month right-angled triangle recently and looks vulnerable to further breakdown having failed to rebound off Monday’s lows. It seems to be moving down again now and if there is a break of the hammer lows at 1.2954 that could lead to an acceleration of the move lower, with support at 1.2818 targeted from both a monthly and a weekly pivot. A recovery on the other hand would most likely see the exchange rate struggle higher to fill the gap at 1.3080.
AUD/USD: Bounce Possible
The aussie has reached a key level where it has achieved the target from the breakout of the April consolidation and it may stop moving lower and consolidate a while. It has also reached support from an old trend-line from the July’11 highs. A bounce from here would probably target resistance at 1.0110 first and then previous lows at the 1.0220. There is also the possibility the original April pattern was a flag yielding a deeper target at 0.9845, with support from the weekly pivot at 0.9972 along the way.
GBP/USD: Break Lower
The GBP/USD has made a more definitive break lower and the bear move down has cleared the final barrier of support from the monthly pivot at 1.6110. It will probably now continue down to support from the trend-line at 1.6000 and then even perhaps the clustering of pivot levels and MA’s at around 1.5945.
Analysis By: Forex4you Analyst Joaquin Monfort.
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