EUR/USD Intraday Technical Analysis and Trading Recommendations for February 6, 2012
On January 27, EUR/USD reached Fibonacci level 38.2% at 1.3232 showing bearish presence there.
Last Tuesday, EUR/USD currency pair managed to make a bearish breakout & close outside the narrow bullish channel marked in brown.
The EUR/USD currency pair tried two successive days to return within the broken channel with failure.
Retesting of the broken channel took place last week failing to fixate within the broken channel again & is moving within the newly formed bearish channel marked on the chart.
The view for the pair is still bearish as long as it’s consolidating within the newly formed bearish channel and below resistance area 1.3215-1.3235
Sellers should take profits at 1.3105, 1.3060 then 1.3000 with possible further targets to be mentioned later.
Bearish reaction towards the lower limit of the broken bullish channel & the upper limit of the bearish channel opened the way to the lower limit of the newly formed bearish channel at 1.3030 initially which got hit short time ago.
Price action towards 1.3030-1.3000 should be watched in order to determine the next target for the pair, as its break will lead to 1.2950 then 1.2850.
Failure to break 1.3030-1.3000 pushes the pair towards 13100-1.3120 which will be good SELL entry.