Forex4you Technical Analysis 23 April 2013

AUD/USD: Continuing Towards Range Lows

The aussie is falling in the short-term and it will probably continue weakening until it reaches the weekly and monthly pivots at 1.0185 and then the recent lows at 1.0115. Longer-term, price action is oscillating within a large box range between highs of 1.0595 and lows of roughly 1.0150, at the upper edge of a multi-month triangle. A break below the 1.0115 level would indicate a strong bearish bias and probable move down to the edge of the triangle at 0.9850. I would want to see a break above the 1.0365 however before getting bullish again and targeting the range highs.

EUR/USD: Breaking Neckline

The pair is trending down again today and we are approaching the neckline at 1.3007 of the sort of head-and-shoulders pattern which has been forming at the highs. A decisive break below 1.3000 would help provide confirmation of a break of the neckline. The initial target down would be to the 200-day MA situated at 1.2922, although eventually price will probably reach the H&S target at 1.2850, which is also at a major up-trend-line. A bullish reversal is looking highly unlikely and would have to break above 1.3075 to gain traction, then targeting 1.3185 to the upside.

GBP/USD: Supported By Channel Lows

The GBP/USD pair has been rising in a channel for for over a month now and it will probably continue. Recently it weakened and fell back to support from the lower channel line where it could probably recover and begin a new move higher. If this happens it would probably reach the upper channel line at 1.5530. Alternatively, a complete breakdown out of the channel would be signalled by a move below 1.5170, which would give a downside target of 1.4900.

Analysis By: Joaquin Monfort, Forex4you Analyst

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