EUR/USD Technical Analysis for the Week of August 8, 2011

The EUR/USD had a fairly wild week as traders sold off, and then bought the Euro as the situation in the EU plays out. The pair does however look a bit like a flag, and as such – we think that there is actually a scenario where this pair goes higher over the long run. However, with all of the headline risk in this pair, we don’t like owning the Euro, and aren’t necessarily found of the Dollar as well. If we break the 1.45 area on a close – this would be the signal to buy. If we break the 1.40 area to the downside, this pair falls.

Written by FX Empire