The eurodollar pair has fallen to the bottom channel-line of the move off the June 1st lows. It has posted a hammer candlestick on the hourly chart and begun to rise. There is the possibility of another move back up to the 1.2660 resistance level where the monthly pivot is situated. Alternatively the pair could break down out of the channel, targeting 1.2440 eventually with confirmation given by a move below 1.2540.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst