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Forex4you Technical Analysis 03 January 2011

EUR/USD: Technical Analysis

The exchange rate has temporarily halted its rise and pulled-back from the highs reached at the end of last week. This correction is probably either an Elliot intermediate B wave before a C leg higher or a 4th wave – but either way the decline is likely to stop soon and begin rising again. It could match the recent high or go slightly further to the 50 day MA at just above 1.3450. A stronger rally might be expected to reach the underside of the old trend-line from the June lows at around 1.3600. Just below that level is also the 50% Fibonacci line of the bearish move in November and the monthly pivot at 1.3590. There is also a chance the current pullback has not yet finished, however, and if so then another leg down could find support at 1.3200.

Analysis by: written by Forex4you analyst

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