By: Dale Todd
EUR/USD has dropped below important support at 1.3347, tipping the scales toward a continuation of the LT down-cycle, and a test of the low at 1.3266. A follow-through below that level would target 1.3123, where a completion of the LT down-cycle may occur. If the 1.3266 low is held, there is a chance of a double bottom for a large upward correction to around 1.3918.
USD/JPY in Corrective Mode
USD/JPY dropped to support at 93.56 yesterday, then rallied up to resistance at 94.28 before dropping back once again. This corrective activity is likely to be choppy, with more resistance found at 94.65, and support remaining at 93.56. A drop below that level expands the correction, with a target of 92.85 as next strong support. If a strong move above the high at 94.78 materializes, the next major target comes in at 96.35, with intermediate targets at 95.10 and 95.69.
