FX.co ★ EUR/USD Intraday Technical Analysis and Trading Recommendations for August 27, 2012

The EUR/USD pair is on its way to test the short term uptrend depicted on the chart after finding resistance around price level of 1.2535.
It's more probable now that the H&S reversal pattern mentioned in the previous article is going to be confirmed.
Confirmation requires 4H closure below 1.2490 which opens a direct target towards 1.2435 then 1.2360.
The lower limit of the movement channel and two important Fibonacci levels & SMA 100 are located between 1.2310-1.2360 (S2 & S3) where price action should be watched for a valid low risk BUY entry with SL located below 1.2230 which corresponds to 78.6% of Fibonacci level.