Forex Technical Update July 8, 2010 EUR/USD Showing First Signs of Reveral
- 1H: The EUR/USD was in a diagonal triangle according to the 7.8.2010 update. The market did not reach 1.2740, but was held at 1.2720. Then there was a sharp slide in the European session until the start of the US session, when the decline paused.
- I would like to see a rally attempt fail and that would help confirm the bearish outlook.
- Weekly and Daily: The weekly chart shows that the market is testing a channel resistance, which is holding as of now. If the daily closes near 1.26, it can create an engulfing pattern in the daily, indicative of a reversal.
- The weekly also shows one possible count. We may be in a C wave. If C = A, then the projection is 1.15. The count may be that we are finishing up 4 and heading into 5 of C.
- The daily chart shows a trendline. If this is broken, there is more likelihood that 1.15 is the projection.
Fan Yang Currency Analyst Commodity Trading Advisor
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