EUR/USD Forecast August 27, 2012, Technical Analysis

The EUR/USD pair fell during the Friday session as the 1.25 level was pierced below. The pair has recently reached the top of the channel that’s been trading and, and formed a shooting star on Thursday. This signaled a fall in this pair that should show lower prices in the future. However, the 1.25 level needs to be overcome in order to begin selling again.

The bottom of the candle from the Friday session will be the support that needs to give way alternately, and it would show that we should at least return to the bottom of the channel. On top of everything else, the Euro is looking weak against many other currencies, and as such it does look like the Euro will suffer in the short term. As for buying this currency pair, the 1.27 level needs to be cleared by the buyers in order for a lot of this noise to get out of the way and the uptrend could continue.

EUR/USD Forecast August 27, 2012, Technical Analysis

Written by FX Empire