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Forex4you Technical Analysis 3 August 2011

EUR/USD: technical analysis
The price failed to decline lower - having tested 1.4140 level it retraced upwards and is currently testing 1.4260/50 resistance level. Indicators are turning up, which gives resons to expect the price to recommence its growth. To make it happen, however, the price has to first ascend and pass a significant resistance at level 1.4330-1.4250/60, or even rise above 1.4370/80. Until it happened, the bears will keep their leading positions in the market and have higher chances to bring the price towards level 1.4000. As for the closest outlook, sideways correction is a more likely event. Nevertheless, even if the bulls succeed with their trend, they won't probably manage to reach new local maximums anyway - 1.4450 resistance level is a strong barrier on the way.
Analysis by: Joaquin Monfort
Forex4you analyst
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