Forex4you Technical Analysis 4 Feb 2011

EUR/USD: Technical Analysis

EUR/USD fell steeply yesterday, breaking through the trendline from the Jan lows until it reached a low of 1.3608. From there it has consolidated – probably in an Elliot wave 4 - and it may correct a little further before the downtrend resumes. Longer term wave patterns suggest the possibility of a major bear move evolving and momentum has given a sell signal. The direction of the move out of the consolidation range will dictate the price action to follow – if up wave 4 may have further to go to perhaps as high as 1.3735 – if lower then probably to 1.3555 initially and then the 1.34s.

http://forex4you.ninjacdn.net/charts/EURUSD040211.png


Analysis by: Forex4you.com written by Forex4you analyst

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