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Forex4you Technical Analysis 1 July 2011


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EUR/USD: meeting resistance

The euro-dollar pair has been rallying strongly but has just encountered resistance from a major trendline and the upper borderline of a triangle. This could be a turning point back down. The most recent rally is probably the triangle D wave in which case only wave E back down remains.There may well be a pullback to the pivot at 1.4425 as wave E unfolds before a breakout of the pattern and a move much higher. However, given there are no signs of weakness yet I would remain cautious. Point & Figure charts are showing intense clustering of targets at the 1.4660 level, which could be key.

EURUSD010711.png

Forex

Analysis by: Joaquin Monfort

Forex4you analyst

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