Forex4you Technical Analysis 07/12/10

EUR/USD: Technical Analysis

The euro-dollar pair has risen overnight in a weak rally back up to the underside of the important trend-line from the June lows. This might be a 5th wave in Elliot terms. If it extends higher then it will probably surpass the old highs and reach around the 1.3440s but a more modest target might be the monthly pivot at 1.3415. After that a strong move down may follow if the trend down resumes. Due to the weakness of the rally in comparison with the prior move it is also possible that the exchange rate will begin falling sooner, with a downside target of 1.3240 initially and then perhaps 1.3210.

http://forex4you.ninjacdn.net/charts/EURUSD071210.png


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

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