Forex4you Technical Analysis 26 April 2013

EUR/USD: Bearish Short-Term Bias

The EUR/USD pair is trading sideways after recovered from a possible H&S top. This morning prices have risen within the range and re-touched the 50-day MA from where they will probably pull-back. The overall short-term trend remains bearish and a decisive break below the trend-line at 1.2995 would probably lead to a move down to 1.2890. To get bullish again I'd want to see a breach of the 1.3115 level although the 100-day MA at 1.3165 stands in the way of much upside after the break.

USD/JPY: Short-Term Recovery Possible

The USD/JPY has fallen to a minor trend-line and formed a hammer candlestick on the 4-hour chart, a Demark buy indicates a recovery rally is probable, to just below 100. The overall up-trend may be capped by the R3 monthly pivot at 100.78 which is unlikely to be breached during April. A move below the trend-line at 98.25 would signal a break and a probable move down to 97.65. If we reach the 95.79 lows then we may have a double top pattern. A break below the 95.79 neckline could then open up a move down to 92.50. This April rally could be an Elliot 5th wave of the whole move from September 2012, with the potential for a correction on the horizon.

Analysis By: Joaquin Monfort, Forex4you Analyst

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