According to the 4 hour chart EUR/USD is in consolidation after topping at 1.4535 , the pair is supposed to pullback towards 1.4600/700 levels after testing 1.4270  38.2% Retracement , 1.4185 50% Retracement or 1.4102  61.8% Retracement of the rally 1.3835 -1.4535 as long as RSI (14) is above the 30 line...

Unfortunately the last 12 hours we missed a good entry around 1.4270 since we have a very close resistance at 1.4318 , the pair declined from that level and tested 1.4185 this morning , a break to 1.4185 would take us towards 1.4102?!!

but remember a break above 1.4318 is supposed to take the pair higher towards 1.4400/500 levels ?!

so now we have to wait for another test to 1.4270 level?!!

Resistance: (1.4460) main, where correction is possible, break would test (1.4560), the next levels are (1.4760) and (1.4860)…For buyers the bullish zone is above 1.4460

Support :( 1.4250) main, where correction is possible, break would test (1.4150), the next levels are (1.4050) and (1.3950)…For sellers, the bearish zone is below (1.4250)...

The neutral zone is between (1.4250 - 1.4460) where it is recommended to evaluate activities on 60 min and 240 min.

The pivot level for this week is (1.4355)…

 Weekly :use 1 hour and (4 hour ..recommended).

Above 1.4460 very bullish trend..

Between 1.4355 - 1.4460 light bullish trend.

Between 1.4150 - 1.4250 light bearish trend..

Below 1.4150 very bearish trend..

Trend Direction is Downward , the trend will remain valid as long as stability is below1.4318, a daily close above this level may lead for a bullish move towards 1.4400/500 levels…

The trading range for today probably would be between the support level 1.4100 and the resistance level 1.4400...

Recommendations : Upon the chart and the explanation posted above , my recommendation is selling the pair around 1.4270 targeting 1.4180 and 1.4100 , stop loss above 1.4320 or buying the pair with an hourly closing above 1.4320 targeting 1.4460 and 1.4560 stop loss below 1.4270 ?!!

Best Regards

Haitham653

Tuesday 02 AUG 2011 08:50 AM