Forex4you Technical Analysis 28 March 2013

EUR/USD: Continuation Down

Eurodollar is falling again and has broken down below the 1.2780 level confirming a renewal of the down-trend. This means it is likely to fall to a new downside target at 1.2650 measured from the pennant formed earlier, although 1.2675 provides an nearer target. Alternatively, if there is a rebound then one would expect upside caped by the 200-day MA at 1.2865, with a break above that required to confirm a bullish recovery, at first targeting resistance at 1.2925.

USD/JPY: Break of Trend-Line

The USD/JPY pair has broken down below the trend-line and key lows at around 94.15 and if we get a daily close beneath this level it could signal a break of a major trend-line and a much deeper correction back down to the 91.00 area lows. Alternatively, for there to be a strong recovery then price would have to move back above the trend-line and breach the recent 94.90 – lets say 95.00 swing highs, with a recovery then anticipated up to 96.65 highs afterwards, but much depends on today's close.

Analysis By: Joaquin Monfort, Forex4you Analyst

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