August 21, 2008 00:15

Technical Analysis – EUR/USD More than just a Bounce?

Posted In: Technical Analysis
By:

8-20-08

3:26a GMT – While daily analysis remains extremely bearish (except that they are heavily oversold) the weekly view offers a different view below. As you can see despite the recent selling of the pair the uptrend remains very much intact and is actually at strong monthly resistance. Yellow trend line below is drawn on the monthly chart if you are wondering why there are some breakthroughs. While my overall bias remains down pending new news out of Europe or the US (after a slight rise to ease oversold levels) this weekly view gives a good amount of reason to pause.

Trading Idea: the best trade here might be no trade until a clear direction is given, however I will be looking for candlestick entry signals near support and resistance levels. On bullish signals I would look for long targets all the way up to 1.5350. On a bearish breakthrough look for short targets down to 1.4475.

(click to enlarge)

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