Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Forex4you Technical Analysis 24/08/10

EUR/USD: Technical Analysis

The pair is descending, like it had been mentioned in the previous commentary, the price tested the first support 1.2620 and is now making attempts to breach it. Indicators’ readings are saying in favor of such turn of events, and level 1.2540 is going to be the next barrier on the way downwards and will probably be tested in the nearest time. At the same time, we also have to pay attention to MACD divergence, which is obviously a signal to an upcoming pullback upwards. There are chances, that it happens after level 1.2540/50 testing. If the trading fixes above 1.2730, we’ll be expecting a reversal to the uptrend.

Analysis by: written by Joaquin Monfort
Forex4you analyst

Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.