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Forex4you Technical Analysis 13 March 2013

EUR/USD: channel breakout

We have now had a break out of the channel, although there has been limited follow-through. The bounce from Friday's lows continues to rise slowly and there is a possibility now - since the channel breakout - of a continuation eventually up to the target at 1.3180. The price pattern stretching back over a week looks potentially like a reversal enhancing bullish outlook. A bundle of resistance at 1.3115 impedes but a decisive break above the 1.3071 highs would add bullish confirmation. For bears to get interested I'd be looking for a break below 1.2945, with 1.2815 indicated as a downside target.

Analysis by: Joaquin Monfort

Forex4you analyst

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