Forex4you Technical Analysis 26 May 2011

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EUR/USD: technical update

The EUR/USD has contiued correcting the previous wave down and rallied higher, reaching almost 1.4200 after breaking above the 1.4092 level as forecast. There is a point and figure target higher at 1.4230, which could be reached but nothing above that. The uptrend seems neither particularly weak nor strong so it could continue higher or begin reversing. The correction as a whole has returned 61.8% of the previous decline, it has just met resistance from a trendline and leg C is equal to A but the exchange rate itself needs to fall lower before it can be assumed that the larger trend down has resumed.

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Analysis by: Joaquin Monfort

Forex4you analyst

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