Forex4you Technical Analysis 18 April 2012

EUR/USD: Technical Analysis

The eurodollar pair completed its upside correction and then began falling as expected. At the same time a head and shoulders pattern broke its neckline and the exchange rate also pierced through major support at 1.3105. It will probably move down to reach the H&S target at 1.3040, however after that there is the possibility of a bounce as downside has been a little weak so far and it is possible the new cycle lower hasn't begun yet. There may be another correction first, with perhaps 1.3185 targeted or even 1.3212.

Analysis by: Joaquin Monfort
Forex4you analyst

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