Forex4you Technical Analysis 09 April 2013

AUD/USD: Poised for Bullish Breakout

The double top on the aussie failed to reach its downside target and instead there has been a strong recovery to the recent highs at 1.0495. There may be a broadening formation pattern unfolding on the 4-hour chart with upside potential. A decisive break above 1.0500 could see a move up to 1.0650 although the monthly pivot at 1.0565 is also likely to offer strong resistance. A move above the 1.0600 level could signal a breakout from the larger multi-month triangle pattern and generate a very bullish target at the 1.10 all-time-highs or probably even the 61.8% extension at 1.1600. Alternatively if the current highs hold we could see a move back down within the pattern to 1.0350.

GBP/USD: Expanding Triangle / Formation

The GBP/USD pair continues to climb. It has broken out of an expanding triangle, signalling a probable move higher, to an eventual target at 1.5470, however, the monthly pivot as well as the 50-day MA at the current highs are capping gains, and this could make further upside more difficult. We would have to see a break above 1.5365 ideally for bullish confirmation, and it is possibly the pair may simply continue sideways for a while. Support at 1.5235 is preventing more downside, but a break below that could see a resumption of the down-trend to the 1.5115 level.

EUR/USD: Monthly Pivot Resisting

The EUR/USD pair has moved out of its range. It is consolidating at its current level where the monthly pivot is providing resistance. A decisive break above the 1.3067 highs would be required for a continuation of the rally higher, with the 50-day at 1.3150 providing the next target up and 1.3220 another eventual possible target. Downside is limited by support at 1.2950-60, which if broken could lead to a move down to the 200-day MA at 1.2880.

Analysis By: Joaquin Monfort

Forex4you Analyst

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