EUR/USD: Technical Analysis

The euro is looking very bearish now and has fallen through a key level - the previous trough low at 1.3507. This means the rising sequence of peaks and troughs from the January 10 lows has given way to a series of lower peaks and troughs. The exchange rate is currently hovering on the neckline of the head & shoulders (H&S) pattern on the 4-hourly chart and a breach of that would be an even stronger bearish signal with a long term target of 1.3165. Initially there is support, however at 1.3440 and 1.3370 which may hold up the decline. Alternatively if the rate bounces off the neckline it could reach 1.3565 - but the tempo is definately downbeat.

GBP/USD: Technical analysis

The price breached support at level 1.6060 and it's currently making attempts to fix below. Level 1.6060, which has recently become a strong resistance, prevented the trades from rising up. So, the price resides at level 1.6015/20 at the moment. And although the "bearish" trend seems to be stronger, it's going to be a long way to the final "bearish" victory. Indicators are turned down, but the readings are not clear enough SS still can't manage to break through and enter the oversold zone, which means, that there is a risk of growth from the current levels to level 1.6330/20. The medium-term growth will come to an end only if the trades hold below the key support at level 1.5750.

USD/JPY: Technical analysis

Previous forecast, that resistance at level 83.55/60 may hold back the pair's growth and initiate a correction seems to be correct. This correction is likely to take place within the previously mentioned range 83.60/70 83.10/00. The price has just tested support at level 83.10/00 and it's currently pulling back upwards. The trading is carried out at 83.25/30. Indicators suggest to consider a possible reversal, which gives even more reasons to expect the trading to go back to level 83.60/50. In other words, we can follow the previous forecast and expect consolidation and further growth to level 84.00/10. At the same time, level 83.00/10 breakout will indicate the "bullish" weakness and a possibility of a bigger correction to support at level 82.80/70.

Analysis by: written by Forex4you analyst

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