Forex4you Technical Analysis 05 April 2013

AUD/USD: Double Top

After recent weakness led to a tentative break below the neckline of a double top at the 1.0380 level there is a chance we might see a move lower now to the target for the pattern at 1.0270. The picture looks bearish but a move back below the 1.0354 lows would give added downside confirmation. Upside is capped by major resistance form the multi-month triangle border at 1.0465 as well as the former highs and other support and resistance levels. A move above 1.0430 would be needed for bulls to take any interest at all, and even then follow-through remains limited, and a strong bullish breach of 1.0500 would be required to even consider the possibility of a breakout scenario.

EUR/USD: Resistance Level Breached

Eurodollar tore higher following the ECB rate meeting. It broke above the 200-day MA and the monthly pivot which had been capping activity at the 1.2880-90 level. It has now stalled and is drifting lower and will probably find support at 1.2880-90 again before probably resuming its up-trend. Another leg higher could reach 1.3050 eventually, with the monthly pivot nearby adding further weight to the target. Alternatively a decisive break below 1.2800 would be required to initiate a resumption of the broader down-trend.

GBP/USD: Hitting Key Resistance

The GBP/USD pair has rallied up to major resistance at the 1.5250 level. A decisive break above the this level – or slightly above in the 1.5260s - would constitute a strong bullish sign and lead to a probable move higher, first to 1.5360 and then 1.5410. There is a bullish bias in the short-term and to get stronger bearish confirmation price-action would have to break below the key 1.5100 level, with a move from there down to 1.4930 then possible.

Analysis By: Joaquin Monfort, Forex4you Analyst

Disclaimer:
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 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.