Forex4you Technical Analysis 8 March 2011

EUR/USD: technical analysis

The EUR/USD pair rallied up to 1.4050 as anticipated and then met stiff resistance from the juncture of major trendlines there. It has rolled over and fallen to 1.3920. There is a channel line supporting at 1.3915 but if it breaks through then that opens the way down to the target for the H&S pattern on the hourly chart at 1.3872. There is also support and resistance at 1.3860; and statistically we know there is good chance price will close above 1.3850. This seems to point to an eventual downside target in that region. However, price may bounce temporarily to perhaps 1.3990 before resuming. This is probably the wave 4 from the 14th Feb lows and if so it has further to unfold.

Analysis by: Joaquin Monfort
Forex4you analyst

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