The aussie has rebounded strongly today after falling to the 1.0250 level. It has just encountered resistance from the trend-line for the move down and there is a possibility that it could break higher given the strength of the bounce so far. If it decisively breaks above the trend-line it could push higher towards a cluster of resistance at 1.0410. The higher trend is turning bearish, however, and there is also the possibility of a recapitulation to support at the 1.0160 level.
GBP/USD: Possible Reversal
The GBP/USD has rebounded from the major support line at the lows and has reached resistance from the down-sloping trend-line at the current 1.5770 highs. If it breaks above the trend-line it will probably rally up to 1.5970. The inverted head and shoulders on the hourly chart has a neckline at 1.5805 and a similar target, and so a move above the neckline would be a strongly bullish sign. Alternatively, a decisive break below 1.5690 could lead to a move down to 1.5555 where the monthly pivot is situated.
EUR/USD: Consolidation in Downtrend
Eurodollar has fallen to a natural support and resistance level and it has started to form a sideways consolidation. There is a possibility it could be a flag and if so then the flag pole extrapolated down could give a target at 1.3240.The H&S top at the highs could also yield a target at a similar level. Alternatively, given the pair is now edging up, if it continues it could reach 1.3470 first and then possibly 1.3500 where the neckline is afterwards.
Analysis By: Forex4you Analyst - Joaquin Monfort.
Markets4you is a daily financial videocast published by Forex4you
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether currency trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Forex4you is the leading forex broker operates all over the globe. Forex4you provides online forex trading for retail clients with the help of electronic payment system.