EUR/USD Technical Analysis July 13, 2011

EUR/USD fell on Tuesday, breaking below the 1.40 and even going as low as 1.3825 or so. However, there was a wicked bounce, and the result is a hammer. The level 200 day moving average is also in the area, and as such – we feel that a bounce could be in the works. A break above the Tuesday highs starts a bounce that many traders will more than happy to sell into. We don’t like markets like this as it seems to make everyone a little poorer when we have these massive moves and returns in a few short hours.

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Forex Mansion