Wednesday, August 17, 2011

EUR/USD Intraday Technical Analysis - August 17, 2011

The current price is testing the upper limit of the long term bearish channel at 1.4460. However price action didn't show considerable bearish reaction on this level till now.

Yesterday's daily candlestick is more bullish than bearish as well as today's candlestick till now.

It's important to note that the pair has a strong resistance level 1.4500-1.4530 which is 100% Fibonacci  & the origin of the bearish engulfing daily candlestick July 27.

Bounce of the upper limit of the bullish channel marked on the chart took place yesterday as expected.

Downside wave didn't reach the expected area 1.4290 as it found strong support at 1.4325.
The pair is going to retest the upper limit of the bullish channel at 1.4470 again suggesting a rebound targeting 1.4330 first.

Break out of this channel and the resistance level 1.4470 will allow the pair to reach 1.4500-1.4530 suggesting a bounce of that area too.

Performed by Mohamed Samy, Analytical expert

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