EUR/USD Continues Down-Cycle

By: Dale Todd

EUR/USD Continues Down-Cycle

EUR/USD has broken down overnight and nearly reached the LT 4^th channel target for the flat black cycle at 1.3333, bypassing the 4^th channel extension target for the LT angled cycle (dark purple). It is likely we will find support here, as there is also a MT down-cycle (brown) whose 2^nd channel extension target comes in right at the 1.3333 target as well. The 4^th channel target for the LT down-cycle (black) is at 1.3123. Resistance is in the 1.3462 area.




USD/JPY Breaks out of Consolidation

USD/JPY has broken out to the upside overnight, rallying past our 91.07 target for the angled purple cycle as well as the upper boundary of the MT flat cycle’s 1^st channel (light green). We are approaching the 3^rd channel extension target for the angled purple cycle at 91.42, and there is a ST cycle that finds its 4^th channel target at 91.48 (gray), so that is an possible area of resistance. The next area of classic chart resistance is 92.14 on the daily chart.

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