Eurodollar is trading in a range which it is currently at the top of and poised for a possible breakout higher. If it succeeds then expect a strong move up to the level of the weekly pivot at 1.2630 which is also equal to the width of the consolidation. Given the pair has broken out of its rising channel however a downside bias is present and the possibility of a fall to the major support lows at 1.2450 remains potent.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst