EUR/USD: technical analysis – July 10, 2012

The EUR/USD is still correcting back higher and is close to the underside of the down-sloping trend-line on the 4-hr chart situated at 1.2320. Substantial selling is likely at that level and this may push the exchange rate lower, perhaps back down to the 1.2255 lows again, or the stronger down-trend may begin again and target 1.2200. A break back above the trend-line however would target 1.2345 first and then perhaps even higher as weak bearish hands swiftly capitulate.

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