Thursday, January 27, 2011

EUR/USD | Technical Analysis | 27 January 2011

EUR/USD | Technical Analysis | 27 January 2011

This pair has risen to touch the underside of the old trend-line from the June lows. It has been unable to penetrate above however, and this morning a sharp sell-off brought prices down to 1.3637 breaking the trend-line of the move from Jan 10 lows in the process. A recovery rally has brought prices back into the range in the 1.3680s.

I think it is unlikely the move down is complete and a ‘C’ leg might unfold with a target of 1.3610 where the S2 daily pivot resides. Alternatively a continuation higher might reach the top of the range at 1.3725.

by Joaquin Monfort, Analytical expert , Forex4You © 2011

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