Forex4you Technical Analysis 17 June 2011

EUR/USD: Technical Analysis

The EUR/USD is consolidating after finding support in the 1.41 area at a major trendline. A break of the trendline at perhaps 1.4070 could lead to an acceleration of the downtrend. However the last leg down was not strong and it is possible the exchange rate could rise instead. There is a possible inverted H&S price pattern forming at the lows, with a neckline at the 1.4220 highs and a break of this could lead to a rally up to resistance at 1.4340. It is worth noting, however, that volume is weak on the formation of the right shoulder which lowers the probability the pattern will successfully trigger.

Analysis by: Joaquin Monfort  

                    Forex4you analyst
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