EUR/USD: technical analysis – August 6, 2012

The EUR/USD has pushed higher and it if moves above the 1.2442 highs again then it could rise further, targeting the monthly pivot at 1.2636. The inverted H&S at the lows on 4-hour chart increases the possibility of more upside. I see 1.2300 as a key level to hold if bulls want to reassert their dominance, but if the exchange rate falls below that then the bears may start to gain the upper hand again as price moves back into the falling wedge, with support at 1.2210 providing a possible downside target.

Written by Forex4you