Monthly EURUSD analysis

March has started strongly for EURUSD with bulls managing to recapture key short-term resistance levels and stopping the sequence of lower lows and lower highs. With February having a bullish reversal hammer candlestick pattern we are optimistic for EURUSD as long as price is above 1.1030.

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Green line - long-term resistance trend line

EURUSD made a new low in February but the month ended near its highs. March is very strong as price has broken the latest high and combined with the fact that price is exiting a downward sloping wedge pattern we are optimistic for the rest of the month. The resistance trend line is at 1.1880. I believe over the next couple of months the chances of touching this trend line are high. Key support and trend change level is the monthly lows and previous resistance at 1.1030-1.10. As long as we trade above this level bulls are in control of the trend.

The material has been provided by InstaForex Company - www.instaforex.com

Monthly USDJPY analysis

USDJPY like the rest of the fx pairs has started March with weakening dollar. Price is well below February lows and is challenging important long-term support levels after being rejected at long-term resistance.

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Green lines - resistance trend lines

Yellow rectangle - long-term horizontal support

USDJPY is most probably still in a correction phase relative to the big upward move that started back in 2011 and topped in 2015. Price retraced 50% of the move and bounced strongly to 118. Since then we see a choppy overlapping structure with a downward bias as price is unable to move above the green trend lines. Price is making lower highs and lower lows. But the lower lows have stopped three times in the 104.50 zone. This is the 4th time we test this support and I believe the chances of breaking below are now higher than any other time. This will most probably push price back towards the 50% retracement level and I believe it is more probable to test also the 61.8% which is the most important Fibonacci level.

The material has been provided by InstaForex Company - www.instaforex.com