Forex4you Technical Analysis 23 May 2011

EUR/USD: Technical Analysis

Previous forecasts, predicting that 1.4340/50 resistance level would be a significant barrier for the price, came true. Having reached 1.4345 level, the price reversed downwards, so it's currently testing a new local minimum at 1.4000/10 level, mentioned as one of the target levels in the later analyses. Indicators are also turned down, suggesting further decline. However, 1.4000 level is deemed as a significant support level, which can halt a decline for some time. Its breakout, on the other hand, would open the way to the next support at 1.3850/60 level. To consider the bullish trend to be back in the market, trading has to first enter the channel (blue lines) and the price has to ascend above this 1.4340/50 resistance level.

Analysis by: Arkady Nagiev

                   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.