Forex4you Technical Analysis 04 April 2013

EUR/USD: Consolidating Before Key News

Eurodollar is trading in a narrow range before the ECB rate-meeting later this morning. A bearish flag pattern may have formed with the potential for a break lower reaching a downside target initially at support at 1.2660 and then possibly eventually 1.2505. Upside is less likely and is capped by the 200-day MA and the monthly pivot in the 1.2880-90 area, and a decisive break above 1.2915 required to confirm a reversal in the short-term trend and a potential upside target of 1.3030.

USD/JPY: Up-Trend Resumes

The USD/JPY pair has rebounded strongly climbing over 300 points in a few hours after the BOJ rate-meeting confirmed more stimulus. The renewal of the up-trend will probably take the pair even to the former 96.70 highs although currently it has stalled at an old trend-line where it may pause to consolidate before moving higher. A decisive move above the prior 96.70 highs would then be required to confirm a breakout, bringing 100 into focus as the next upside target.

Analysis By: Joaquin Monfort,

Forex4you Analyst

Belajar Forex

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