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Forex4you Technical Analysis 16 April 2013

EUR/USD: Consolidating - Drifting Lower

Eurodollar continues to consolidate and drift lower. It has rebounded back up from the range lows today and now faces resistance from the 50-day MA at 1.3095. It is possible the pair could be forming a bullish flag which could trigger a rally after breaking above the 50-day and range highs at 1.3125, leading to a move up to 1.3445. It is also possible the consolidation is a topping pattern at the end of an Elliot wave 4, and a decisive break below 1.3020 could lead to a fall down (in a wave 5) to 1.2945, and then 1.2745.

USD/JPY: Rebounding

The USD/JPY has sold-off to support from a support-and-resistance level and the trend-line in the lower 96s. From here it has bounced back up to a consolidation zone and the level of the weekly pivot at 97.75. There's no sign of weakness in the rebound yet and it will probably continue higher to 98.15, or possibly even 98.75 cluster of pivots. A break below 97.48 would probably signal a breakout of the channel and lead to a move down to 97.00 initially and then possibly even the 96.60 support level.

Analysis By: Joaquin Monfort, Forex4you Analyst - Forex Indonesia

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