Wednesday, July 13, 2011

EUR/USD Bounce Continues - 13 July 2011

The chart of the euro-dollar shows price bouncing from the recent lows at the 200-day MA and the major trendline from July 2010. 

Yesterday was a hammer and today the pair is continuing to rise, engulfing yesterday's range – a bullish sign if it can hold. 

The natural place for the rally to end would be the lower border of the triangle at 1.4150, which also happens to be the S1 monthly pivot. Thereafter the down-trend will probably resume. 

Analysis prepared by:
Joaquin Monfort
Forex4you analyst