Forex4you Technical Analysis 13 May 2011

EUR/USD: Technical Analysis

The EUR/USD pair has rebounded from yesterday's lows but it will probably resume its downtrend soon given the lack of long upside counts to support a stronger recovery. Only horizontal counts are available yielding upside targets of 1.4370 and then 1.4550 on the 0.001x3 chart (below). The downside target to 1.3900 is still valid and could still be realized, and it would require a rally above 1.4440 to negate it. It is therefore probable the exchange rate will rise to around 1.4370 achieving the first upside count, and then resume its strong downtrend to the 1.3900s to meet the target down.



Analysis by: Joaquin Monfort
                    Forex4you analyst

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