The EURUSD break below its May and June lows is significant in that the decline from 12675 may be a 3rd of a 3rd wave. The larger degree 3rd wave (from 13695) would equal 161.8% of wave 1 of the same degree at 11050. The next level of interest on the downside however is 11638, which is the 2005 low. Trading above 12330 would negate the bearish forecast and shift focus back to 12675.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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