FX.co ★ EUR/USD Intraday Technical Analysis & Trade Recommendation December 29, 2011

EUR/USD currency pair witnessed sharp decline yesterday recording a low at 1.2889.

Now retracement is expected after visiting the lower limit of the marked bearish channels at 1.2905 which was slightly breached shortly before the pair came back above with a bullish englufing candlestick.

Now the pair is testing the upper limit of the violet channel at 1.2950 which if broken will open the way for a retracement movement targetting 1.2980 initially.

Based on the previous analysis, the marked indicates a bullish opportunity on the break of 1.2950 with TP at 1.2980, 1.3000 then 1.3025.

SL should be 1H closure below 1.2910.