EURUSD Outlook for the Week of July 4-8, 2011

EURUSD’S broad outlook continues to witness narrowing consolidation pattern with lower highs 1.4939 , 1.4695 and 1.4478 and higher lows 1.3969 , 1.4072, 1.4102 .  This triangle consolidation pattern whereby sellers are selling lower and buyers are buying higher will eventually witness a break out as this usually occurs somtime after the pattern is 3/4 complete.  As to an upside break, look for a daily open and close above 1.4554 to favor further rise targeting 1.4703, 1.4852 and 1.4939, while to the downside, look for a daily open and lower close below 1.4072 to confirm further downside extension targeting 1.3953, 1.3880, 1.3820 and 1.3760.