EUR/USD in Consolidation Mode

By: Dale Todd

For EUR/USD, the rally above 1.3621 negated our ST down-cycle (orange), and would either allow continuation of the MT up-cycle (blue), or expand the 1^st channel of the ST down-cycle. An alternate for the ST down-cycle is shown (gold) that angles somewhat severely, and would have a 2^nd channel target at around 1.3480. Support is at 1.3570 and 1.3545. A rally above 1.3691 continues the MT up-cycle (blue) with a 2^nd channel target at 1.3899.




USD/JPY Continues Sideways Trade
USD/JPY is moving up towards the upper boundary of the 1^st channel at 93.77. We may get slightly above that to expand the 1^st channel of the MT down-cycle (black), or move all the way back up to resistance at 94.41 before continuing the corrective down-cycle. Currently, the targets for the down-cycle are at 91.92 and 91.53. A rally above 94.41 is an early indication that the corrective down-cycle is complete, and a resumption of the LT up-cycle.