Forex4you Technical Analysis 16 August 2012

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 happens, new local minimums at 1.2060/40 level will be tested any time soon after. However, there's one more significant barrier on the way - level 1.2160, strong enough to halt further dissension for quite a while. The alternative scenario, expecting growth to 1.2440/00 resistance, its breakout and reversal towards the uptrend, targeting 1.2550, 1.2670 levels, is still possible too.

Analysis by: Joaquin Monfort
Forex4you analyst

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