Daily Technical Report By MIG Bank (August 8) - EUR/USD, USDX Featured

Below is a technical report on currencies and precious metals courtesy of MIG Bank, the first forex broker in Switzerland to become a Swiss bank. I presented their analysis on EUR/USD below, read the rest after the jump. Click here to read the full report on their website.

Source: MIG Bank
"EURUSD remains bearish under resistance at 1.4420.
  • Exited at 1.4205 (Breakeven). EUR/USD’s price activity remains bearish, despite a two-day reactionary bounce which failed in resistance at 1.4420. This confirms another bearish pattern, weighed down by additional failed breakouts from the major “Bermuda” triangle pattern. We prefer to open a trade setup once this pattern triggers a meaningful directional breakout.
  • Our long standing bearish view remains in play while the downtrend (from May) holds. A resumption of lower will target 1.3938 (200-DMA), where a large amount of die-hard trend followers will be watching closely for repeat support or a big squeeze lower. Only a close above 1.4580 will lead to a reassessment of this view.
  • Inversely, the US dollar index is resuming its oversold bounce from key support at 73.50-73.00. We expect this level to hold (as the last point of defence), helping launch a rebound back into 80.00 over the multi-week/month horizon."

2011 08 08 Migbank Daily Technical Analysis Report+