EUR/USD Technical Analysis for the Week of August 15, 2011

The EUR/USD pair is currently banging around in a massive potential flag. Either that, or a downward channel, and at the moment, either could be correct. The pair has been very difficult to trade lately form a long-term perspective, and we don’t think that will change in the next week or two. If we can get a daily close above the 1.45 level – the flag on the chart that is marked with the purple lines would be broken to the upside and valid. If that is the case, we eventually go all the way to 1.65 or so. However, until we get that break, we can only assume we are in a downward channel, but as you can see, this pair has been sloppy over the last few months.

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