Forex4you Technical Analysis 23 May 2011

EUR/USD: Technical Analysis

Previous forecasts, predicting that 1.4340/50 resistance level would be a significant barrier for the price, came true. Having reached 1.4345 level, the price reversed downwards, so it's currently testing a new local minimum at 1.4000/10 level, mentioned as one of the target levels in the later analyses. Indicators are also turned down, suggesting further decline. However, 1.4000 level is deemed as a significant support level, which can halt a decline for some time. Its breakout, on the other hand, would open the way to the next support at 1.3850/60 level. To consider the bullish trend to be back in the market, trading has to first enter the channel (blue lines) and the price has to ascend above this 1.4340/50 resistance level.

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Analysis by: Arkady Nagiev
Forex4you analyst

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