Monday, July 25, 2011

EUR/USD Bouncing Short-Term - 25 July 2011

The EUR/USD is still consolidating at a strong resistance point where it is pressing up against the upper boundary line of the triangle pattern visible on the daily chart. Until it can break out of the triangle, however, the bullish case lacks confirmation. 

There is no serious weakness yet either, however, and there has just been a bounce off the lower channel line drawn from the rally starting on the 18th, on the 30min chart, which, will possibly re-touch the highs at 1.4435, reaffirming the upside bias to the trend.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst