EUR/USD: Break Higher
Eurodollar has pulled back after yesterday's short-lived rally and has found support at the upper line of the wedge again, from where it has just rebounded. It looks like it will probably renew its rally towards its next target at 1.3050 – although there is also resistance at 1.2950 which could temporarily impede progress. In the end, a decisive break above the 1.2967 would provide strong confirmation. Alternatively, a bear move below 1.2875 would lead to a probable move lower to the monthly pivot at 1.2840.
EUR/JPY: Technical Analysis
EUR/JPY has broken back above the trend-line for the rally from the late July lows. If it holds and rallies then it will probably meet resistance from former highs at 101.60 at first. If it breaks above that it could rise all the way back up to channel highs at 103.15. A move above the 101.20 could give upside confirmation. So far the rally is tenuous, however, and might still falter, with a break below the support level at 100.50 could open the way to re-visit of the 99.63 lows.
GBP/USD: Channeling Down
The GBP/USD is channelling down. It has moved down to the monthly pivot at 1.6095 and it is possible there may be a bounce from here back up to 1.6145, although a break above 1.6186 would be required to encourage more bulls to join the party. A break below 1.6070 could open the sluice gates to rapid falls as it would start to look like a downside range break as well as a break below the major trend-line holding up the lows. Such a move could target the 1.5950 support level in the end.
Analysis By: Forex4you Analyst - Joaquin Monfort.
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