Forex4you Technical Analysis 18 Feb 2013

EUR/USD: bounce possible

The EUR/USD pair has fallen to a cluster of strong support including the 200-4hour moving average, a trend-line and a neckline for a possible H&S top. The downward pressure seems to have eased today and there is a reversal pattern breaking on the hourly chart which could signal a bounce back up; with a break above 1.3395 targeting 1.3470. Alternatively any further downside could break through the neckline of a potential head and shoulders top and trigger a stronger downside move, although it would have to pierce below 1.3245 for confirmation of a move down to 1.2950.

Analysis by: Joaquin Monfort
Forex4you analyst

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