Forex4you Technical Analysis 24 May 2013

EUR/USD: Bouncing Off Trend-Line

The EUR/USD exchange rate is still trading on the July '12 trend-line however it is rising bullishly at the moment. We have had a surge this morning which has taken it up to 1.2980 where a thick band of resistance, including the 50-day MA is situated. If it manages to break above 1.3000 then it is possible we could see a move higher to the 1.3170 highs. It's looking less likely the trend-line will break and we will get a bearish drive lower, but a move below 1.2795 would be required for a fall to the downside target at 1.2580.

USD/JPY: Falling Within Channel

The USD/JPY pair has fallen from the 103.73 highs, pulling back just shy of fulfilling the 104.00 target and whilst it is possible it could go higher again to 104.00 we may count the target reached, indicating a short-term top is in place. We will probably now see a move down within the channel to the lower border-line at 100.00. I break below that would initiate a stronger bearish correction perhaps to the trend-line at roughly 97.80.

Analysis By: Joaquin Monfort, Forex4you Analyst

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