FX.co ★ EUR/USD Intraday Technical Analysis August 30, 2011

Daily closure as high wave candlestick.

Although the pair broke the upper limit of the bearish channel, the market is still in confusion as there's no apparent bullish reaction at the resistance area 1.4500-1.4550.

Bullish view is confirmed when the pair breaks 1.4550 but now retracement is more suggested towards 1.4420-1.4450 in order to go long.

Area 1.4420-1.4450 is retest of the broken downtrend line, support level ( previous highs & lows ) and lower limit of the bearish channel (4H chart).

Direct break of 1.4550 gives the long signal with SL 4H closure again below it.