FX.co ★ EUR/USD Technical analysis-Triangle Break to the downside-July 12, 2011

::Daily::

The EUR/USD currency pair managed to break the uptrend line and the symmetrical triangle to the downside.

The downside movement targetted the previous low 1.3969 which is Last 24 May's Low.

:: 4H ::

Bearish wave started this month and enhanced the last two days.

The pair has visited 1.3986 then took a breath from the downside pressure.

This pause will last asl long as the pair is consolidating above 1.3970.

Expected Scenario:-

Break of the triangle and the support level 1.4150 on the daily chart opened the way for the pair to decline.

At the moment the pair is showing beginning of retracement move targetting 1.4100-1.4130 before resuming downside movement towards 1.3900-1.3850.

This retracement move is cancelled if the pair breaks 1.3970 directly.

Recommendations:-

Selling is recommeded near 1.4100 - 1.4130 Or after direct break of 1.3970.

SL should be 4H closure above 1.4170.

TP at 1.4000, 1.3900 then 1.3850.