FX.co ★ EUR/USD Intraday Technical Analysis & Possible Scenarios - July 20, 2011

Yesterday's long position achieved its target as we expected.

Now the pair is facing resistance at the SUPPLY area 1.4200 - 1.4215 marked in red circle on the chart.

The previously mentioned supply area is also 50% Fibonatcci Retracement Level of the bearish wave from 1.4580.

Also the pair is facing the upper limit of the symmetrical triangle marked above.

Expected Scenario:

After a bullish day (Yesterday), the resistance (supply) area 1.4200 limited the pair from further upside movement.

Also bullish candlesticks became weak indicating strength of the bears there.

The view for the day is mainly bearish as long as the pair is trading below 1.4200.

Its expected for the pair to visit 1.4090, 1.4050 then 1.4030.

In case the pair closes above 1.4200, it's easy to reach 1.4285-1.4300.

Trade Recommendations:

SELLING near 1.4180 - 1.4200 with TP 1.4100 then 1.4050 with caution at 1.4130 as it's a strong support level.

SL should be 4H closure above 1.4200.