AUD/USD: Double Top
After recent weakness led to a tentative break below the neckline of a double top at the 1.0380 level there is a chance we might see a move lower now to the target for the pattern at 1.0270. The picture looks bearish but a move back below the 1.0354 lows would give added downside confirmation. Upside is capped by major resistance form the multi-month triangle border at 1.0465 as well as the former highs and other support and resistance levels. A move above 1.0430 would be needed for bulls to take any interest at all, and even then follow-through remains limited, and a strong bullish breach of 1.0500 would be required to even consider the possibility of a breakout scenario.
EUR/USD: Resistance Level Breached
Eurodollar tore higher following the ECB rate meeting. It broke above the 200-day MA and the monthly pivot which had been capping activity at the 1.2880-90 level. It has now stalled and is drifting lower and will probably find support at 1.2880-90 again before probably resuming its up-trend. Another leg higher could reach 1.3050 eventually, with the monthly pivot nearby adding further weight to the target. Alternatively a decisive break below 1.2800 would be required to initiate a resumption of the broader down-trend.
GBP/USD: Hitting Key Resistance
The GBP/USD pair has rallied up to major resistance at the 1.5250 level. A decisive break above the this level - or slightly above in the 1.5260s - would constitute a strong bullish sign and lead to a probable move higher, first to 1.5360 and then 1.5410. There is a bullish bias in the short-term and to get stronger bearish confirmation price-action would have to break below the key 1.5100 level, with a move from there down to 1.4930 then possible.
Analysis By: Joaquin Monfort, Forex4you Analyst
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