Forex4you Technical Analysis 26 April 2012

EUR/USD: Technical Analysis

The rally in the euro has risen even higher defying forecasts that it would fall. The move must now still be a correction of the bear move from the early April highs rather than a new wave down as I originally thought - despite the apparently over-extended wave count. The correction has reached back a Fibonacci 61.8% of the previous move, and has put in a 2-bar reversal candlestick pattern on the hourly chart; in addition momentum is diverging considerably, so it seems likely, therefore that the the pair is ready for a pull-back from here – at least to support from the 50-day MA at 1.3205. Further, upside on the other hand might be expected to rally to resistance at 1.3275.

Analysis by: Joaquin Monfort
Forex4you analyst

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