Forex4you Technical Analysis 06 January 2011

EUR/USD: Technical Analysis

There is a strong possibility of the bounce from here. The exchange rate has reached trend-line support at the lows and there is every chance it may start to rally from here. From an Elliot wave perspective we still appear to be in wave 3 down with perhaps the beginnings of a wave 4. An initial target for the rally might be 1.3170 with a distinct possibility of a follow through to support and resistance at 1.3250 thereafter.

http://forex4you.ninjacdn.net/charts/EURUSD060111.png

Analysis by: Forex4you.com written by Forex4you analyst

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