AUD/USD: Downside Probable
The aussie has re-touched the underside of an old trend-line and is consolidating in a price pattern. It will probably be resisted and break to the downside. Rates will probably fall to the 50-day MA at 1.0362. Alternatively the consolidation may play out longer with a move back up to the top of the range highs at 1.0420 possible.
EUR/USD: Pushing Higher
Eurodollar is consolidating after yesterday's break above the inverted H&S's neckline. It will probably move up to 1.2875 resistance now – or full-fill the H&S's target at 1.2918. The lack of follow-through it a bit disconcerting so prepare for sudden weakness taking bulls by surprise, and an opportunity to go short below 1.2715 as it will probably lead to a quick run down to 1.2635.
USD/JPY: Looking Over-Extended
The USD/JPY pair is looking quite over-extended and will probably fall. MACD and RSI are overbought on all time-frames and there are other signs of exhaustion including a break out of the channel and a triangle preceding the final rally. Whilst a final push up to 81.90 is a possibility there will probably eventually be retrace at first to support at 80.58 and then maybe 80.00.
Analysis By: Forex4you Analyst - Joaquin Monfort.
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