EUR/USD analysis (July 08, 2011)

The pair is evolving in a middle term triangle which confirms a market consolidation. The limits are given around 1,45 and 1,42 i.e. 300 pips range.
We consider that the bottom line has been tagged yesterday with a low at 1,4220.

EUR/USD : daily chart

Given the sharp bounce we saw, it is tempting to trade a continuation of the move towards the trendline resistance at 1,45. A break above yesterday high at 1,4175 would give us a hint.

We might see the EUR/USD consolidating over the coming sessions before breaking in either way. It will then give us a directional bias for the end summer.