EUR/USD Technical Analysis August 23, 2011

The EUR/USD pair rose on Monday, but pulled back to form a shooting star. This is an especially bearish signal as it not only shows a lack of follow through, but the top of a downward channel as well. This shows that the pair is very weak, and a break below the 1.4350 level looks like a trigger to fall again, perhaps down to 1.41 or so as it is the bottom of the most recent consolidation area. We will not go long until we break above the 1.4525 level or so. With all of the European debt issues, it is very difficult to own the Euro in this environment.

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