EUR/USD Trades – Bullish Bias on Dip

EUR/USD Current Price: 1.4363 Daily High/Lows:

eurusd_aug_3_2011

Source: FXtrek IntelliChart™ Copyright 2001-2011 FXtrek.com, Inc.

Wed 3 Aug 1.4143/1.4345
Tue 2 Aug 1.4151/1.4283
Mon 1 Aug 1.4185/1.4452
Fri 29 Jul 1.4230/1.4414

EUR/USD: The EUR/USD price action over the last two weeks has formed a downtrend channel which started at the high of 1.4538 back on 7/27/2011. Since then the market has made lower highs and lower lows which signifies a choppy decline. We are at a critical juncture at the moment and unless we reverse from current levels and start heading down again, and take out the low of 1.4143 made on 8/3/2011, the market may continue higher towards the 1.4538 and 1.4580 levels. Today’s drop to 1.4143 met stiff support at the tunnel and the 50% retracement level. From current levels, look for a retracement of this last swing move to 1.4283 (38.2%); 1.4256 (50%); and 1.4230 (61.8%) for a potential buy.

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