Forex4you Technical Analysis 10 January 2011

EUR/USD: Technical Analysis

EUR/USD is still falling and whilst there is some convergence with momentum at the lows, it is a little too early to say a substantial correction is on the horizon. If a correction does rise up from here, then an initial target would be the old trend-line and support and resistance level in the vicinity of 1.2950, or if higher then near the 200 Day MA at 1.3050. There will probably still be a fall afterwards, however, given the move down from the 4th appears incomplete. The 61.8% Fibonacci line from the rally in June and the monthly pivot at 1.2780 and 1.2750 respectively are two downside targets for any further selloffs.

http://forex4you.ninjacdn.net/charts/EURUSD100111.png

Analysis by: Forex4you.com written by Forex4you analyst

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.