Forex4you's Blog – August 2012 Archive (5)

EUR/USD: Technical Analysis

The EUR/USD pair is meandering without much direction at the moment. The deadening volume may be put down to a substantial portion of the market standing aside in anticipation of Jackson Hole. Nevertheless, the pair is still in an upward short-term trend, albeit within a larger downward longer-term trend, and it will probably continue since there are no signs of reversal. The next upside target would be at the upper channel line at 1.2635…

EUR/USD: Technical Analysis

Eurodollar has pulled back after a sharp rally. It will probably resume its move higher and re-test the upper channel line at 1.2615. The bigger picture, however, indicates the formation of what is probably a fulcrum pattern on the 4-hour chart and this is a bearish reversal sign. A break below the bottom of the pattern at 1.2465 would be strong confirmation of more downside with the lower channel line at 1.2400 providing an initial…

EUR/USD: Technical Analysis

Earlier forecasts, expecting that retracement below 1.2360/50 level would indicate bigger possibility of resuming downtrend, confirmed. The price plummeted and is now testing 1.2270 level, which is the first barrier, protecting 1.2270-1.2230 support range, mentioned earlier as the key barrier on the way down. Indicators are bearish, suggesting further decline and giving reasons to expect the above mentioned support to be breached. If it…

EUR/USD: Technical Analysis

Overall the outlook has turned bearish for eurodollar now that the pair has broken down below the 1.2300 level and back into its channel. My preference is for a continuation down to trend-line support at 1.2215 particularly if the 1.2360 lows are broken. Signs of short-term strength, however, could act as a spoiler, with a double-bottom on the hourly chart and a break above 1.2305 triggering a rally up to 1.2345 – possibly taking bears by…

EUR/USD: Technical Analysis

Eurodollar is still stuck plum in the centre of a range. Currently it is falling and looks set to re-test yesterday's 1.2325 lows and probably even reach support at 1.2305. A bearish topping pattern has also formed. As stated before a break below 1.2300 would be a very bearish sign and open the way to 1.2210; whilst a breach above 1.2386 could see a short-covering recovery to the range highs at 1.2445.…