FXstreet.com (Barcelona) - The Euro Dollar seems to have opened a medium term consolidation period as a reaction from the bearish pattern drawn from December 18, which has taken the Euro Dollar down from 1.4720 to 1.2704.

For the last 10 days, the Euro dollar has been trading bet5ween 1.2704 and 1.3093. According to Nicole Elliiot, senior technical analyst at Mizuho Corporatre Bank the Euro has entered into a downward wedge from Jan 8th onwards: Hard work with small complex moves holding inside a downward-sloping 'wedge' formation. Expect more of the same today and remember that only on a sustained break above 1.3300 will momentum turn bullish and life get a bit easier and more interesting.

On the short term, however, the Euro seems to be showing slightly bullish signals, and Elliot observes a new rally to levels above 1.30 for today: Attempt longs at 1.2930/1.2870; stop well below 1.2700. First target 1.3000, then 1.3100