The eurodollar continues to rise in a counter-trend short-covering rally. It is currently moving higher in a zig-zag which has completed wave’s A and B and is now probably unfolding C, which could reach 1.2670 if it obeys wave equality with A. However there is resistance ahead at 1.2605, from the weekly pivot, and also at 1.2625 from the Jan lows so either of these could repel the advance. A break lower would probably fall to the cluster of support at around 1.2510, including the trend-line of the move.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst