EUR/USD Full Technical Analysis


Analysis 19/03/2012

A break below 1.2969 would be enough evidence to suggest that the EUR/USD has resumed its downtrend from 1.3487. This would also indicate a break of a very proimante support zone where the EUR/USD seems to stall. This break would also be be the neckline for a minor head and shoulders pattern. This pattern isn’t completely obvious however it does hold some charateristics of a head and shoulders pattern which would be a reversal of the upward trend from 1.2619. Once 1.2969 is broken the EUR/USD should slide down to 1.2619.

This is all part of the long term downward trend from 1.493 in April last year. And a break of 1.2619 should pave the way to 1.18 low. There is also a strong downward trend line that has now been touched 3 times with the most recent being the high at 1.3487.

To the upside we would like to see a break above 1.34876. This should pave the way for another rising leg.

With the European markets still in turmoil and the USA still growing strong there is a saying. “Trade the fact”. I remain bearish on this EUR/USD.

What do the labels mean?

Red line - Support Level.

Green line - Resistance Level.

Arrows - Represent key points in the formation. If its a head and shoulders formation I will place arrows at the shoulders and head.

Thumb - When the price reaches near the thumb that is when we need to look for clues to enter.


Hi guys.

Just a heads up.

The EUR/USD is getting close the the 130.000 Breakout zone.

My up date analysis is below.

I write 2 analysis’s every day. And they form my setups and my trading plan. At anyone one time i have 15 setups under formation. Im just saying this because i want you guys to know how much it helps to do this for your trading. It prepares you and the bottom line is that PREPARATION PREVENTS POOR PERFORMANCE.

Analysis 04/12/2012

In the long term the price has been consolidating since the high of 2008 at 1.60472 with no real indication of a strong prominent long term trend. In the weekly chart you can clearly see that there has been lower highs at 1.60472, 1.51465, and 1.49319. And there has been a lower low at 1.18797. This gives this consolidation a bearish bias but it’s not clearly evident. However I always say point out the obvious first since those are the points of most interest to traders around the world. And that is clearly evident.

In the medium term the fall from 1.49319 to 1.26192 isn’t over yet. For this to be over we would like to see a break above 1.34930 that should pave the way to at least 1.39406. This will also break the 200SMA. We expect this to be a strong resistance level and whipsaws are more likely since it’s going against the medium term trend. We will look for strong price action movement, momentum, and volume to pin point a valid breakout.

To the downside we are looking for a clean break below 1.3000 psychological support level. This will extend the fall from 1.49319 down to 1.26192. A break at 1.26192 will extend the fall to test the major psychological support level at 1.18797. This would be a very good set up to occur since it’s going with the medium and long term trends. Both 1.26192 and 1.18798are very evident on the chart so we are expecting strong action around those areas

Wekly chart below


As we can see bulls are predominating on the market. If currency pair breaks the level 1.31387 then price will come to the level 1.31717 as minimum, I suppose. If currency pair goes to 1.31823 then after correction there can be a possibility of growing till 1.32111.
If eur breaks the level 1.30596 then currency pair will have bearish movement that will last till level 1.29558