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Forex4you Technical Analysis 30 Jan 2012

EUR/USD: Technical Analysis

Level 1.3140/50 held back the "bulls", like expected, but not for a long time. The price went further up, tested 1.3220/30 level, which turned out to be a strong resistance, and pulled back down to level 1.3140/30, where trading is being currently carried out. Indicators are turning more down, suggesting further decline, most likely to 1.3100 or even lower, to 1.3080/70 level. However, present pullback should be considered a correction within the uptrend. Reversal up will give reasons to anticipate 1.3280-1.3300 levels to be tested anytime soon. On the other hand, if the trades hold below 1.2900 and then breach 1.2830/40 support, "bearish" sentiment will be back in the market for a medium-term.

Analysis by: Joaquin Monfort

Forex4you analyst

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