EUR/USD: Trend-Line Still Supporting
The EUR/USD exchange rate is trading slightly above the July '12 trend-line. The thick band of resistance at 1.2980 including the 50-day MA is preventing further upside. A decisive break above 1.3000 would be necessary to trigger a stronger move higher to the 1.3170 highs. It's looking less likely the trend-line will break and we will get a bearish drive lower, but a move below 1.2795 would open up a downside target of 1.2580. Today is a holiday in the U.S and U.K so market volumes and volatility are likely to remain low.
GBP/USD: Bouncing Within a Down-Trend
The GBP/USD pair has fallen bearishly to a target from its channel breakdown and support at the recent lows. Now it has bounced and broken above a down-sloping trend-line, generating an upside target at 1.5290, which is also in the region of the support line of the box-congestion zone on the weekly chart. The monthly pivot at 1.5190 could also resist further upside. After the bounce has finished the strong down-trend is expected to resume eventually until it reaches the 1.4825 level at the recent lows and then possibly eventually the target down for the box breakout at 1.4225.
Analysis By: Joaquin Monfort, Forex4you Analyst - เทรด Forex
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