EUR/USD technical analysis and trade recommendations June 9, 2011

On the daily time frame we see retest of the broken bullish channel and lower border of the consolidaton range 1.4752 - 1.4910

As we watch price action towards this area, We see yesterday's daily candle which was engulfing bearish candlestick

indicating strength of Bears and weakness of Bulls there indicating downside movemet coming after .

As we zoom in the 4H chart , we see possibility of reversal pattern formation " Head and Shoulders " with the right shoulder in progress .

The right shoulder of this pattern will be at the backside of the lower limit of the broken channel .

Area 1.4630 - 1.4644 has Fibonatcci levels 50% , 61.8% of the last swing low on 4H chart

Based on the previous analysis :

Area 1.4630 - 1.4644 will be a good SELL area with primary target at 1.4600 then 1.4567 then 1.4510

SL for this position should be placed above 1.4720