EUR/USD analysis (July 05 2011)

After a 5-days rally, the EUR/USD seems to have found some resistance ahead of 1,4570 validating a descending trendline started in the beginning of May.


EUR/USD : daily chart

A clear break below 1,4040 would confirm a potential reversal with a target towards 1,42 (bottom of a daily triangle).

The pair may also consolidate before resuming its move to the upside. In the event, a break above 1,4570 would expose 1,47 over the near term.

We don’t expect a major move on the Euro before thursday and the ECB rate decision.