Monday, August 15, 2011

EUR/USD Possible 3 Methods - August 15, 2011

Euro-dollar is rising within a range and it will probably continue and reach the highs. The point and figure charts provide convenient targets at 1.4375 and 1.4380 for the rally. 

Looking beyond the very short term there seems to be an indication that the down-trend could resume: there is the start of a Falling 3 Methods candlestick continuation pattern on the daily chart and strong resistance from the 50 and 100 dmas, as well as the cloud on the Ichimoku chart, with kijun sen also encountering resistance from price. A move down could reach the range lows at 1.4050.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst