Forex4you Technical Analysis 17 Feb 2011

EUR/USD: Technical Analysis

Resistance at level 1.3540 was finally breached. This level has been recently tested as support, so now we can assume that the price has managed to hold above and further growth can be expected. The closest resistance looks to be at level 1.3640/50, and this assumption seems to be even more correct because the level matches with a short-term downtrend channel line (red lines). It’s breakout would mean a reversal to the uptrend. Indicators suggest growth as well. However, the previous forecast remains relevant too – the “bullish” trend will be then dominating, when the price returns the uptrend channel sector (blue lines). Until it happens, the “bears” still have good chances to bring the price back to a downtrend. Support range 1.3460 – 1.3400 breakout will indicate a reversal to the “bearish” trend for a medium-term.

http://www.forex4you.com/images/site/EUR170211.GIF

Analysis by: Arkady Nagiev written by Forex4you analyst

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