Forex4you Technical Analysis 18 Jan 2012

EUR/USD: Technical Analysis

The EUR/USD has rallied up to resistance from the upper channel line of the bearish trend at 1.2785. It has also hit the sideways consolidation highs and the final move higher resembles an elliot 5th wave indicating the possibility of some downside to follow. Although the market hasn't reversed yet there are quite a few negative signals and a move down is expected. The base line of the consolidation and the swing lows at 1.2690 and below at 1.2670 compose the initial target zone.

Analysis by: Joaquin Monfort
                    Forex4you analyst

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