Forex4you Technical Analysis 1 July 2011



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.

You must be registered for see images

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.

Aurix Exchange