Forex4you Technical Analysis 16 Jan 2011

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EUR/USD: Technical Analysis

The price declined below 1.2780/70 level, triggering a reversal of the "bearish" sentiment on the last session. Trading slipped to its local minimums and then even lower, reaching 1.2630/20 levels. At the moment we observe a pullback up, the price resides at 1.2670/80 level. Indicators are unclear, suggesting uncertainty in the market, which is very likely to result in another correction to recent growth, followed by a possible pullback up, probably to 1.2770/80 level or even higher. For now, consolidation range would be limited by 1.2700/1.2690 resistance. Speaking of a medium-term outlook, the "bearish" trend would be dominating with next target found at 1.2370/60 level.

Analysis by: Arkady Nagiev

Forex4you analyst

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