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EUR/USD: Long-Term P&F Target

A long-term target of 1.4100 has been fixed on the 50 pip box point & figure chart as illustrated below. This is quite a reliable chart for trading longer-term based on results from the last 12 years. Now to activate the target and trigger a trading opportunity the exchange rate would have to move up to 1.3250 in the current column. This would also trigger a triple top continuation pattern, a further bullish sign. The stop would be placed at the 1.2700 level. The trend is up based on the 45 degree trend-line which remains intact despite recent price action which came back to find support and then bounced at the April lows.

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USD/JPY: Possible Triangle Forming

The USD/JPY pair has formed a possible right-angled triangle on the daily chart. This indicates there will probably be an upside breakout, which will reach the triangle's target at 103.65. The weekly and monthly pivot clustered together at 100.70, however, could provide tough resistance to more upside, and a more cautious strategy could be to wait until that level had been breached. The bearish scenario, although less likely, would see price break down and confirm a breakdown by moving below the 97.00 lows, triggering a sell-off down to 92.90.

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Analysis By: Joaquin Monfort, Forex4you Analyst

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether currency trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

AUD/USD: Correcting Down-move

The current rally in the aussie which began on the 2nd of May is probably a correction which will run out of steam, most probably at 1.0345 where the 50-day MA and a down-sloping trend-line intersect. After that we could see the next leg lower take shape, falling down to 1.0195 initially but ultimately to the wider consolidation lows at 1.0150. Alternatively, a break above 1.0385 could be bullish and lead to double bottom triggering and a swift short-covering rally up to the upper border of the larger multi-month triangle at 1.0477.

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GBP/USD: Consolidating in Up-trend

Cable is consolidating in a range at the level of the 100-day MA and the weekly pivot. Overall the short-term up-trend remains intact, however, and will probably result in a break even higher eventually, with a decisive breakout above the range highs at 1.5605 leading to a probable move up to the monthly pivot situated at 1.5725. For a bearish reversal, I'd want to see a strong move below the 1.5495 range lows, leading down to a clustering of support at the 1.5360 level.

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EUR/USD: Bounce Underway

The EUR/USD pair has drifted higher overnight after falling to support at the 1.3050 level where a major trend-line is situated. It will now probably continue bouncing higher today, reaching back up to the 1.3160 resistance level. Alternatively, for a more bearish scenario to evolve, the pair would have to break down below the 1.3063 lows and the trend-line, targeting support from the 200-day MA at the 1.2955 level.

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Analysis By: Joaquin Monfort, Forex4you Analyst

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether currency trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

EUR/USD: Bearish signs, ECB on tap

Eurodollar has stalled in its up-trend and formed a bearish shooting-star candle on the daily chart. On the hourly chart there is a head and shoulders pattern with a neckline at 1.3145. If the pair breaks below the neckline it will probably move down towards the trend-line at 1.3085. Alternatively it is possible the up-trend could resume again, with a break above 1.3200 seeing the start of a recovery to the upside, although for more confirmation it would have to move above 1.3225, then targeting 1.3325. Today's ECB rate meeting could cause short-term volatility and dictate the future direction of the trend.

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USD/JPY: Consolidating in a Triangle

The USD/JPY pair has stopped falling and is currently consolidating in a triangle on the intra-day charts. It will probably eventually break down out of the triangle and continue lower. The only problem is the monthly pivot and support and resistance grouped at 96.66, which could resist further downside, however a decisive break below that level would probably lead to 95.80-90s reached near the neckline of the possible double top. A break of the neckline could then in turn lead to a further possible move lower into the territory of the 92s. Alternatively given the broader up-trend a break above 97.55 could give a potential upside target of 98.30.

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Analysis By: Joaquin Monfort, Forex4you Analyst - Forex Indo

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether forex trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.