FX.co ★ EUR/USD Intraday Technical Analysis August 19, 2011

EUR/USD currency pair is still forming ascending lows thus preserving the mechanism of the bullish direction.

The current price is retracing to the downside after testing the upper limit of the long term bearish channel on the chart.

Yesterday;s Daily candlestick visited 1.4270 which is the low of yesterday, and closed with a moderate lower tail.

The pair is now testing the backside of the broken short-term downtrend line, Support level ( previous top) & 50% Fibonacci of the last bullish move (1.4280).

The current support is a good area to go LONG. However, closure below it will open the way to the lower limit of the short-term bullish channel (1.4170-1.4200)

We need bullish confirmation ( obvious reversal bullish candlestick) of the current level or at 1.4170-1.4200 in order to go LONG.

SL should be placed below 1.4050.