FX.co ★ EUR/USD Intraday technical analysis July 5 , 2011

Although the pair managed to break above the upper limit of the channel, it's trading below the pressure of the resistance level 1.4560 which is 61.8% Fibonacci level.

Friday's candlestick was hanging man and Monday's candlestick was high wave.

This means the failure of the pair to stay above 1.4560.

The pair is showing weak performance and consolidation between 61.8% - 50% Fibonatcci levels.

This performance is condisdered weak although it's bullish more than being bearish.

This means weakening of the bullish move that started 24 June lasting for 5 days of steady upward movement.

Conclusion:

On the Middle term , the pair is still bullish without change.

On the short term , as long as the pair is trading below 1.4560 , it's under selling pressure.

Retracement is expected to reach 1.4450 and if the pair managed to break it it can extend down to 1.4380 - 1.4350.

It's recommended to watch 1.4450-1.4400 to go on long positions.