EUR/USD: technical analysis – July 23, 2012

The eurodollar pair has gapped down today and fallen to support at the current 1.2095 level where the monthly and weekly pivots are both situated together. The gap was probably of the break-away variety and it is therefore more likely to run lower than fill, with a probable end-target at 1.2000 where the lower channel line is situated. If there is a rebound, however, it could first reach the bottom of the gap at 1.2130 or even possibly fill it at 1.2150, however after that the down-trend will probably resume.

Written by Forex4you