EUR/USD: Meeting Resistance
Eurodollar has reached resistance from a down-sloping trend-line. There will probably be a pull-back from here, down to support at perhaps the 1.2945 level, and if the 1.2920 hammer lows are broken than that would provide added bearish confirmation and probably see the down-swing accelerate. Alternatively a breakout higher – perhaps above the 1.3030 level - could see an uninterrupted run all the way up to the previous highs at 1.3145.
USD/JPY: Short-term Correction
The USD/JPY has just hit resistance from the monthly and weekly pivots and it will probably fall back down into the 79.80 support region; with a break below 79.69 required to generate a bearish reversal. Longer-term, however, things look more bullish after the down-sloping trend-line from 2007 was broken. Strong continuation patterns on both the daily and the weekly charts target 80.50. A retest of the 84.23 highs is not out of the question, although a break above 80.20 would add confirmation, with a more modest initial target set at 81.15.
GBP/USD: Wave 5
The GBP/USD pair has risen and broken above the 1.6050 and now also the major trend-line at 1.6095 to be trading at around 1.6120. It may well pull-back to 1.6095 temporarily but then it will probably rebound. I see this as confirmation that wave 4 has completed and we are in a wave 5 back up, which will probably re-touch the highs at 1.6275.
Analysis By: Forex4you Analyst - Joaquin Monfort.
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