Forex4you Technical Analysis 01/11/10

EUR/USD: Technical Analysis

EUR/USD began rallying last Wednesday but has hit stiff resistance today primarily from the down-sloping trend-line made by the line connecting the highs of the 15th and the 25th. The rally is an Elliot wave impulse, whose 5th wave is probably complete and now likely to correct the rise. It should go down until support from the monthly pivot at 1.3908, followed perhaps by 1.3800. There is a diamond reversal pattern at the highs and 3 doji’s in a row on the weekly chart indicating a possible reversal of the trend and much lower prices to come.

http://forex4you.ninjacdn.net/charts/EURUSD011110.png


Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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