The Euro remains in the first leg of a larger corrective consolidation..or does it.. Well since the rally to 1.3230 an approximate equality target t, the Euro has retraced in a three wave and therefore potentially corrective decline to 1.3025 not overlapping with the first leg to 1.2985. A fourth wave projecting new highs to the 1.3350-1.34 region to end a 5 wave trend sequence before lower? Certainly possible and more so since it is paying havoc and therefore undermining that head and shoulders neckline at 1.3075. But then the rule of alternation is also undermined by the zig zigs to 1.2855 and 1.3025. And there is also that similarity with the June 2011 rally.
So failure to clear the 1.3200-30 highs in th enext 48 hours or a loss of 1.3025 would confirm an early return to 1.2930 and eventually 1.2855. So which one.. money speaks louder than analysis.
I am still short but adding on rallies above 1.3150 with 1.3240 stops.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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