Tue, 08 Mar 2011 08:59:00 +0100

Forex: EUR/USD, aiming to 1.3930/05 after failure at 1.4045 - Charmer Charts

FXstreet.com (Barcelona) - Euro rally extended yesterday to 1.4035 high, where the pair was rejected, and pulled back to consolidate below 1.4000 in Asia, with technical indicators losing momentum, suggesting further retreat to 1.3930/13905, says Carol Harmer, analyst at Charmer Charts.

With the pair starting to show weakness, Harmer expects the pair to dip to 1.3900 area: "The med term charts are beggining to turn negative after again failing to break 1.4045. For today unless we can break and hold above 1.4045 we are going to come lower for 1.3930/1.3905 where we would cover all shorts."

On the upside, breach of 1.4045 would reactivate bullish pressure towards 1.4250/80, says Harmer: "If above 1.4045 which is the previous uptrend line from last year we should be able to make
1.4250/80 which were the Nov 2011 highs."

Technical Analysis (2011-03-08 07:45 GMT)
EUR/USD 1.395/1.3951 - O: 1.3835 H: 1.3847 L: 1.3834 C: 1.384
Trend	R3: 1.4019
	R2: 1.3984
	R1: 1.3950
	S1: 1.3871
	S2: 1.3906
	S3: 1.3940