By Yan Petters – Over the past 6 weeks, the EUR/USD pair had 3 failed attempts to drop below the 1.3430 level. However today seems to be the day that we will see a 1-year low as several technical indicators provide clear bearish signs.
• The chart below is the EUR/USD 4-hour chart by ForexYard
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• There is a very distinct bearish channel formed on the chart.
• A bearish cross of the Slow Stochastic suggests that the bearish channel is likely to be extended.
• The MACD and the RSI are both pointing down, indicating that the bearish momentum is still very strong.
• The next support level is located at the 1.3450 price.
• If the pair will manage to cross this level, it is likely to reach the 1.3430 level – which will mark a year low.
• Traders should notice that if the pair will reach below the 1.3420 level, this has potential to initiate a sharp slide.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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