Forex4you Technical Analysis 21 March 2011

[namrata]

EUR/USD: technical analysis
Previous forecast, saying that price may continue its growth and test 1.4130/1.4170 levels turned out to be correct. Touching 1.4180/70 level, the price began to pull back downwards. At the moment, trading is carried out around levels 1.4150/55. Indicators say in favor of growth, albeit the readings are not all unanimous, which gives reasons to consider a possible pull back, that may grow into quite a long-term sideways movement within 1.4080/70 – 1.4180/70 range. Decline below 1.4010/00 may indicate that a pullback is very likely to become a reversal. Final signal for a medium-term "bearish" trend would be support 1.3850 and up trend line (blue lines) breakout with the following fixation below. Until the price breaches the above mentioned support levels, the "bullish" trend should be considered "dominating". In case growth continues, level 1.4250/60 is considered to be the next target.

EUR/USD: technical analysis
The EUR/USD has stopped rallying higher today and it is possible there may be a correction or pause. There is a demark setup sell signal at the highs on the 4-hour chart and Friday’s daily range touched the top Bollinger Band suggesting we may be slightly overextended. The point and figure upside target of 1.4265, however, still stands, and there is strong support from the old June trendline and a monthly pivot at around 1.4130. In fact any sideways or downside action would be expected to slow at that level, or after that 1.4095.

Forex
Analysis by: Joaquin Monfort
Forex4you analyst

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