Forex4you Technical Analysis 30 April 2013

EUR/USD: Rising within a consolidation

Overall the EUR/USD pair is trading in a chaotic range in between 1.3180 and 1.2980. Within that sideways band, however, it seems to currently have an upside bias. A break above the 1.3120 highs would be key in confirming a continuation higher, with an upside target at 1.3160 where the 100-day MA is situated. Today has been a down day so far, however, and it is possible that there could be more downside temporarily, although it would probably be limited by support at the 1.3025 lows, from where a bounce might be expected to occur.

USD/JPY: Trend-line reached

The USD/JPY has reached an important trend-line and has broken lower temporarily, although a decisive break on higher-time-frames has not yet happened. The trend-line will probably hold and if we get a close back above 97.85 then it could signal rebound to 98.80. Alternatively, if we get a daily close below 97.85 then price will probably go down to a target of 95.70, and probably then lower. The 95.70 level could be the neckline of a double top pattern, which in turn could lead to larger loses and a deeper move down to the 92s.

Analysis By: Joaquin Monfort, Forex4you Analyst

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