Forex Technical Update

Prev: Are EUR/USD Bulls Setting up for Disappointment as it Nears Gartley Completion? (7/21)

EUR/USD 7/25/2011 1H Chart
Local Pivots:
- The beginning of the week is light on economic releases. The market is also exhausted after inconclusively putting on EUR-strength as well as putting on further USD-pressure.
- Here are the local pivots for the short-term range-bound market:
Resistance 1: 1.4403-1.4406
Resistance 2: 1.4437-1.4450
Support 1: 1.4323-1.4328
Support 2: 1.4275 - 1.4280
Support 3: 1.4230
- The break above Resistance 2, 1.4450 is an initial signal for  a medium-term bullish continuation, with a target towards 1.4940 in August. The short-term target is 1.4555.
- A break below 1.4230 starts the bearish continuations outlook. The completed Gartley (ab=cd harmonic retracement pattern) seen in the 4H chart does suggest some short-term bearish attempt.
- A short-term outlook targets 1.41. A break below that opens up 1.3850.

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Fan Yang CMT
Chief Technical Strategist