FX.co ★ EUR/USD Technical Analysis & Possible Opportunity August 5, 2011

There's a newly formed channel appears on the chart after the weekly movement occured.

Weekly closure below 1.4100 enhances the bearish view targeting the lower limit of the bullish channel at 1.3900-1.3800 before resuming the uptrend.

Bearish Engulfing Daily candlestick occured yesterday.

This daily closure below 1.4200 enhances the bearish view at the short term scale.

Today, price faced the support level at 1.4100 bouncing to the upside to test the previously broken support levels now working as resistance.

The currency pair broke the bullish channel successfully yesterday making lower highs & lows.

As we mentioned above the pair has found support at 1.4055 retracing towards 1.4160.

Next downside swing will target 1.4020 then 1.3950.