Forex4you Technical Analysis 07 Feb 2011

EUR/USD: Technical Analysis

The forecast turned out to be correct, so decline continued. The price met support around level 1.3530/00 and it's currently pulling back upwards. The trading is carried out at 1.3600/10. Indicators are "bearish", they are turned down, which gives reasons to anticipate further decline. However, a strong cluster of supports stands in the way at level 1.3530/00 and lower, being a serious challenge for the "bears". Therefore, range trading within 1.3700-1.3530 is most likely in the near future. However, the outlook remains the same – if the trades fall below 1.3500 we'll be expecting serious changes in the market and then, if the trading holds below support 1.3450/60, the "bearish" trend will become dominating. Reversal upwards, above level 1.3780 would indicate a reversal to the up trend with the first stop at 1.3900/10.

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Analysis by: Forex4you.com written by Forex4you analyst

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