Forex4you Technical Analysis 31 August 2011

EUR/USD: Technical Analysis

The price breached  1.4450/60 support line, stopped at 1.4385/90 level – the uptrend (red) line and then retraced upwards.  At the moment it’s testing previously breached support level, this time as a resistance, which gives reasons to consider a possible change of market sentiment towards the bearish. Everything depends on which way the trading will move now – if it fails to ascend above 1.4550/60 level, the bearish chances to make a downtrend dominating will increase and the price may commence another decline towards 1.4120 level. Indicators are turned down, supporting the assumptions of a possible downtrend.  However, the price may still attempt to grow towards  1.4550/60, higher growth is unlikely.

Analysis by: Joaquin Monfort    

                    Forex4you analyst
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