Forex Technical Analysis – EUR/USD Trend Line

By Russell Glaser – The EUR/USD 4-hour chart shows an opportunity for forex traders to enter into the market on a strong downtrend.

A technical analysis of the of 4-hour EUR/USD displays a distinct downward sloping trend line, beginning on January 26th. The price made its third point of contact with the trend line today at 9:00am GMT. The third point of contact signals that this is a strong trend line that should be respected.

Three sell indicators were triggered today.

1. The first when the price of the EUR/USD pair began to head lower after it arrived at the downward sloping trend line.

2. The second sell indicator was triggered by the Parabolic SAR. The parabolic dot now appears above the price line, indicating a bearish trend .A confirmation of the strong downward trend was given by the upward sloping ADX indicator that is floating above the 30.00 mark.

3. The price has breached below the 20-day moving average line of the Bollinger Bands. We can therefore anticipate the pair’s price falling to its lower Bollinger Band.

Those forex traders whose technical analysis did not immediately identify the trend line and did not enter short in anticipation of the lower breakout can still enter into the market at a relatively attractive price. We can expect the pair to fall close to its support line of 1.3480, near its lower Bollinger Band.

Forex Market Analysis provided by Forex Yard.

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