EUR/USD: Supported By Trend-Line
Eurodollar has now fallen to support from a trend-line and major pivots at around 1.2860. It is currently consolidating at this level. If it breaks down and closes below the trend-line then it will signal a bearish reversal with a downside target of 1.2450 - although the monthly pivot at 1.2580 is a closer more achievable target. Alternatively a strong move above the 1.2890 highs could signal a bounce with an upside target of 1.2965.
GBP/USD: Consolidating On Support
Cable has broken out of its channel and fallen heavily, although it still has further to go, with the eventual target for the breakout lying down at 1.5035. Currently it is consolidating on support from the monthly pivot at 1.5190. Whilst it may bounce from here temporarily it will probably roll-over eventually and reach the 1.50 target. If there is a bounce from the current level then it will probably stop at resistance from the 50-day MA at 1.5250, before perhaps resuming the down-trend, and a break above the 50-day would be pre-requisite to renewing bullish demand.
Analysis By: Joaquin Monfort, Forex4you Analyst
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