Forex4you Technical Analysis 23 April 2012

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EUR/USD: Technical Analysis

Eurodollar has probably completed its corrective phase and there is a very good chance it could be beginning a new cycle down, with eventual targets below the previous 1.2995 lows. One possible Elliot count could be to view Friday's rally as completing a double zig-zag correction, with the way now open to the initiation of a new impulse down. Today's strong bearish move could be the beginning of that impulse. There is support from the 100-day MA at 1.3125 but nothing else, and the monthly pivot at just above 1.3000, so its possible the exchange rate could break down - with the pivot as a reasonable initial target.

Analysis by: Joaquin Monfort

Forex4you analyst

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