FX.co ★ EUR/USD Intraday Technical Analysis August 29, 2011

As the situation in the market is confusing, We have two scenarios regarding the EUR/USD curreny pair.

1.Bullish Scenario

We had a bullish engulfing daily candlestick at the upper limit of the bearish channel marked on the chart. However, we still have a strong resistance at 1.4500 which held the price below many times before.

Because of this resistance and the bullish pressure, the pair is trapped in the congestion zone 1.4250-1.4300 up to 1.4500.

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Buying at the current high prices is risky, thus who is convinced with BUYING should wait for price to decline down to around 1.4330- 1.4250.

This area is meeting of the uptrend line (starting at mid July 1.3837 ) with the back side of the broken downtrend marked on the chart.

2.Bearish Scenario:

Technically :The pair has been making lower highs failing to break 1.4500 and close above 1.4550 which is bearish signal targeting 1.4000 at least.

Fundamentally: Europe problems which haven't been solved yet applyselling pressure on the pair.

Who is convinced with bearish scenario, Selling of the current level is Ok with SL break of 1.4550.