Eurodollar is forming a triangle with the exchange rate currently rising in an Elliot ‘D’ wave, targeting the upper boundary at 1.2555. After that it will probably fall back down to the lower boundary at 1.2480 as wave ‘E’ unfolds. A breakout higher, however, would lead to a move up to the previous multi-year trend-line at 1.2635. After that it may roll-over and continue the down-trend. A downside breakout from the triangle could reach support from the 50-day MA at 1.2365.
Written by Forex4you