EUR/USD: Bearish Continuation
Eurodollar has now corrected back 76.4% of the whole counter-trend rally in June and looks poised to resume its descent and re-touch the major 1.2287 lows. Currently it is consolidating on the monthly S1 pivot but if it breaks lower than it could even target the lower channel line of 2012′s fall at 1.2180. It’s less likely, but if it recovers it could bounce back up towards the 1.2450 mark.
EUR/JPY: Trend-line Break
The EUR/JPY pair has temporarily broken down below the trend-line of the June rally. If it continues and breaks 98.30 that will offer further bearish confirmation, signalling a possible resumption of the broader down-trend. The next target lower is the pivot at 97.15 followed by the previous lows at 95.58. If the pair reverses and bounces higher than the first upside target would be at the monthly pivot and the underside of the trend-line at 99.40.
Analysis By: Forex4you Analyst - Joaquin Monfort.
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