Forex4you Technical Analysis 05 August 2011

EUR/USD: Technical Analysis

The euro-dollar could bounce after finding support from an old trend-line from the May highs. Both momentum indicators are over-sold but there are no other major reversal signs yet. A small double-bottom on the 10 minute chart on the S2 daily pivot may start the counter trend rally, with the first upside target at 1.4170 and then if it extends to fill the gap a continuation to the upper channel line of the descent at 1.4205. A deeper sell-off will probably follow, first to match the current lows and then to support at 1.4000.

Analysis by: Joaquin Monfort    

                    Forex4you analyst
Disclaimer:Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.