By: Dale Todd
The EUR/USD completed the ST down-cycle yesterday at 1.3595, and is now being pulled down by the longer-term cycles. The LT black cycle has a 3rd channel target at 1.3484, and the LT angled purple cycle has a 4th channel target at 1.3404.
LT Fibonacci retracements also need to be considered, and the 61.8% level comes in at 1.3473. Resistance should be found at 1.3585 and 1.3595.
USD/JPY Remains in Channel
USD/JPY continues to chop sideways-to-up, remaining in our 3rd channel extension. We have traded slightly above Fibonacci resistance at 90.23, but have no other strong resistance before 91.27.
Support is at 89.59, and 3rd channel extension support is at 89.46. The 4th channel target on the downside comes in at 88.24. We need to watch for a breakout one way or the other, and for now, the odds favor a downside break.