EUR/USD: Technical Analysis

The rally yesterday from the 1.37 lows - surprising perhaps in its ferocity - took the exchange rate back up to the 1.3990s just under the old highs in the 1.40s, where the R1 monthly pivot is situated. There is an indication that this move now is quite mature and may correct a little. It is also being resisted by the under side of the old trend-line up for the whole September rally. If the rate falls, it should meet support from the upper channel line from the June lows which has been successfully containing price action during the recent correction. A downside target therefore would be around 1.3935, whilst more upside should at least match the old highs at 1.4028.




Analysis by: Forex4you.com written by Joaquin Monfort
Forex4you analyst

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