EUR/USD | Euro/Dollar | Technical Analysis | 2 February 2011Yesterday the exchange rate rallied and broke through the major trendline from the June ’10 lows. Since then it has fallen back to just above that same trendline and it could find support there at around 1.3780. The fall looks like a small Elliot wave 4 of the recent rise and once it has completed wave 5 may rise back up to possibly match the highs at 1.3850.
After that it is possible the exchange rate will fall again given the move from the 10th Jan looks complete. This may imply the trendline break yesterday was only temporary - a view supported by the muted activity today. A target for a fall could be the support clustered around 1.3650.by Joaquin Monfort, Analytical expert , Forex4You © 2011
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