Forex4you Technical Analysis 20 May 2013

[Forex4you]

EUR/USD: Trend-Line Broken

Eurodollar has broken down and closed below the major trend-line from the July '12 lows, which is a bearish indication. This morning there has been a recovery to 1.2860 but it is unlikely to go much higher as upside is capped by the underside of the trend-line just breached and a thick grouping of pivots and moving averages at 1.2870. The trend-line break suggests there will probably be a stronger move lower, with an eventual target all the way down at 1.2455 although the monthly pivot situated at 1.2580 supplies a nearer, more achievable objective.

USD/JPY: Channeling Higher

The USD/JPY pair is steadily rising in an upward-slanting channel. The target from the triangle breakout lies at 104.00 and forms a probable eventual target. There has been some weakness recently, however, and the pair could continue selling off a little more until it reaches the lower border of the channel at 102.30. At that level, however, it would probably resume the up-trend, rebounding back higher and reaching the top of the channel at 103.50 initially, before the eventual target at 104.00.

Analysis By: Joaquin Monfort, Forex4you Analyst

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