Forex4you Technical Analysis 14 Janauary 2011

EUR/USD: Technical Analysis

The rally continues higher. It broke the 4th January highs this morning and rallied up to 1.3450. There is considerable resistance at this level from old highs reached on the 3rd and 14th December, and the 4th and 14th January, completing almost cyclical 2-weekly tops, and also from the bottom of the Ichimoku cloud. It is possible there could be a correction from here but before that there is the chance of a final rally. We look like we are in the process of completing an Elliot wave 4 of the impulse up this morning. Once complete it will lead to a final rally in the exchange rate probably matching the recent highs. A break of the 1.3325 lows, however would indicate a larger bearish move was underway instead.

http://forex4you.ninjacdn.net/charts/EURUSD140111.png


Analysis by: Forex4you.com written by Forex4you analyst

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