Forex4you Technical Analysis 30 Jan 2012

EUR/USD: Technical Analysis

Level 1.3140/50 held back the "bulls", like expected, but not for a long time. The price went further up, tested 1.3220/30 level, which turned out to be a strong resistance, and pulled back down to level 1.3140/30, where trading is being currently carried out. Indicators are turning more down, suggesting further decline, most likely to 1.3100 or even lower, to 1.3080/70 level. However, present pullback should be considered a correction within the uptrend. Reversal up will give reasons to anticipate 1.3280-1.3300 levels to be tested anytime soon. On the other hand, if the trades hold below 1.2900 and then breach 1.2830/40 support, "bearish" sentiment will be back in the market for a medium-term.

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.