Forex4you Technical Analysis 12 Jan 2012

EUR/USD: Technical Analysis

The “bearish” attempt to continue a down trend ended up at the old minimum. Reaching 1.2660/65 level, the price pulled back up and now resides at 1.2720/30 levels. Indicators are turning up, suggesting “bullish” development; MACD divergence seems to have commenced, which gives reasons to be cautious about the “bearish” strength and consider a possibility of reversal up, that may be triggered by today’s political news and ECB interest rate and monetary policy decision in particular. In this regard, our suggestion would be to postpone trading the instrument until the situation clears up. Technical picture looks the following - 1.2810 resistance breakout, if takes place, will hold back further growth either at 1.2850/60 or at 1.2900 resistance line. Downtrend is considered dominating in a medium-term, the next target will be found at 1.2370/60 level.

Analysis by: Arkady Nagiev
                    Forex4you analyst

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