Forex4you Technical Analysis 21 March 2013

EUR/USD: Sideways Market

The euro rebounded off its lows during Wednesday's session and found its way above the upper line of the down-sloping channel. This morning, however, it has started to fall once again and has now reached the upper channel line again where it is consolidating temporarily on the support offered. Given the bearish start to the day it is possible there could be a continuation lower, with a break of 1.2865 back into the channel, giving bearish confirmation and a possible move down to the monthly pivot at 1.2815. Alternatively, given the overall sideways market profile it could also use current support for a rebound back up to the key 1.2980-90 highs.

GBP/USD: Possible Bullish Reversal

The GBP/USD pair has rallied strongly after positive Retail Sales data. It is currently breaking-out of its down-sloping trend-line and also showing an inverted head and shoulders reversal pattern at the lows, a combination which is very bullish. If we get a daily close above 1.5180 then there is strong possibility of a breakout move up to the inverted H&S target at 1.5490 where the 50-day MA is also situated. Alternatively for confirmation of a resumption of the down-trend a move below 1.5025 would be required, which would then target the 1.4831 lows.

Analysis By: Joaquin Monfort, Forex4you Analyst.

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