Forex4you Technical Analysis 1/12/10

EUR/USD: Technical Analysis

The euro-dollar pair found a temporary bottom yesterday at 1.2960 and has been rising since then reaching back up to 1.3090. Given the weakness of the recent pullback I think the countertrend rally could extend further, possibly to the 200 Day MA at 1.3125 or to the underside of the trend-line up from June at 1.3275ish. After that, however, it will probably rollover and make new lows.

http://forex4you.ninjacdn.net/charts/EURUSD011210.png


EUR/JPY: Technical Analysis

This pair has put in a temporary bottom at 108.50 and since then has been rising. I see a pullback in the short term, perhaps to 109.35 and if the pullback is particularly strong then it could be the beginning of a resumption of the trend down, otherwise I think it will base and there will be a final rally higher to the 110s possibly even 110.80 and the monthly pivot. The move down from the November 5 highs looks like a zigzag in which Wave C may not have completed unfolding because it is currently shorter than the average. To reach average length it would have to decline to past 107.20 point (equality with A).

http://forex4you.ninjacdn.net/charts/EURJPY011210.png

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

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