EUR/USD: Technical Analysis

The EUR/USD fell to 1.4260 lows yesterday but has since begun consolidating in a range. The emphasis is still bearish and the larger 0.005x3 chart has met its upside targets indicating possible exhaustion. Shorter term, however, there are no clear vertical downside targets on the 0.001x3 chart, although a horizontal count yields a bearish target of 1.4170. The smallest box size chart, the 0.0005x3 conversely has an upside target of 1.4450. It may be that some upside will be followed by another down move to the 1.41s although the conflicting signals make it difficult to forecast.

EUR/JPY: Technical Analysis

The EUR/JPY pair has fallen and rebounded quite strongly. There are now bullish counts from off the lows established on the 0.1x3 and 0.05x3 charts, although they have yet to be activated. A break above current highs at 116.20 would be required for activation with 119.00 and 118.25 targeted thereafter. The downside targets have already been met, with 114.70 reached exactly on the 0.05x3. There is a bullish emphasis longer term with the 0.5x3 chart showing an unmet target at 126.50. Resistance at 117.50 may also come into play and should be used as an initial target for any advance. Overall bullish rebound potential awaiting confirmation.

Analysis by: Joaquin Monfort
Forex4you analyst

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