Forex4you Technical Analysis 03 May 2013

AUD/USD: Correcting Down-move

The current rally in the aussie which began on the 2nd of May is probably a correction which will run out of steam, most probably at 1.0345 where the 50-day MA and a down-sloping trend-line intersect. After that we could see the next leg lower take shape, falling down to 1.0195 initially but ultimately to the wider consolidation lows at 1.0150. Alternatively, a break above 1.0385 could be bullish and lead to double bottom triggering and a swift short-covering rally up to the upper border of the larger multi-month triangle at 1.0477.

GBP/USD: Consolidating in Up-trend

Cable is consolidating in a range at the level of the 100-day MA and the weekly pivot. Overall the short-term up-trend remains intact, however, and will probably result in a break even higher eventually, with a decisive breakout above the range highs at 1.5605 leading to a probable move up to the monthly pivot situated at 1.5725. For a bearish reversal, I'd want to see a strong move below the 1.5495 range lows, leading down to a clustering of support at the 1.5360 level.

EUR/USD: Bounce Underway

The EUR/USD pair has drifted higher overnight after falling to support at the 1.3050 level where a major trend-line is situated. It will now probably continue bouncing higher today, reaching back up to the 1.3160 resistance level. Alternatively, for a more bearish scenario to evolve, the pair would have to break down below the 1.3063 lows and the trend-line, targeting support from the 200-day MA at the 1.2955 level.

Analysis By: Joaquin Monfort, Forex4you Analyst

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