Monday, August 1, 2011

EUR/USD Weekly Technical Review - August 1, 2011

The Monthly closure was very bullish as bounce from the marked support level is obvious in the long lower tail of the candlestick.
This support level is important as it's the high of previous months, the low of other months and the retest of the broken downtrend line.

The pair is trending up inside a bullish channel.
Bounce from the lower limit and the broken downtrend line is obvious in the bullish engulfing patterns.
The weekly candlestick was doji which may be a retest of the bullish engulfing pattern of the previous week.

Strong bullish reaction of the price is obvious at the retest of the broken bearish channel.
This bullish reaction is obvious at Friday's candlestick.
Now the pair is targeting the last high and 61.8% Fibonatcci Level at 1.4515 as the next station of resistance.
We need obvious break of this resistance to resume the uptrend easily.
Failure of upside movement would bring the pair down to 1.4330 as the first support level.

Performed by Mohamed Samy, Analytical expert

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