Forex4you Technical Analysis 08 Feb 2013

EUR/USD: consolidation in downtrend

Eurodollar has fallen to a natural support and resistance level and it has started to form a sideways consolidation. There is a possibility it could be a flag and if so then the flag pole extrapolated down could give a target at 1.3240.The H&S top at the highs could also yield a target at a similar level. Alternatively, given the pair is now edging up, if it continues it could reach 1.3470 first and then possibly 1.3500 where the neckline is afterwards.

Analysis by: Joaquin Monfort
Forex4you analyst

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