Monday, July 18, 2011
EUR/USD Approaching key resistance 7/18
I posted about the triangle it was forming and while I thought we might get one more bounce before breaking to the downside, it appears it chose to just break it and kickstart a downtrend. We saw a nice retracement in the middle of last week to just break back in and then out of the previous triangle (shown in purple) and also hold the deep retracement at 1.43 (shown in yellow). We now have pulled back out of the yellow retracement but are looking to head back to the lower level. We also see this 38% level corresponds almost exactly with the 61.8% level of the most recent up moves retracement @1.4115-1.412. This level seems like it will be key to ensuring this downtrend continues, and any good divergence or candlestick formation off this level should be a good selling opportunity.