Forex4you Technical Analysis 30/11/10

EUR/USD: Technical Analysis

Yesterday the EUR/USD decisively broke down through a major trend-line from the June lows. This marks a significant change in trend and the decline will probably continue lower, perhaps till it reaches a support and resistance line at 1.2940 initially and then probably further. The move down off the November 5 highs looks like a zigzag and if wave C is the same length as A - which it is likely to be at the least - then it will most probably continue falling till 1.2850 if not lower. Nevertheless there is a chance of a bounce off 1.3000 given the psychological importance of the level but it should be short-lived and eventually rollover and continue lower.

http://forex4you.ninjacdn.net/charts/EURUSD301110.png


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

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