Jamie's Pick: 02/04/11
The EURUSD has broken 13570, which confirms the intraweek reversal. The 13456-13538 area is possible support (20 day average in the zone as well at 13500). It is possible that the drop from the top is nearing a completed 5 waves but I wrote yesterday that “if this is indeed a 3rd wave decline at multiple degrees of trend, then the severity of the drop will be breathtaking.” In other words, be careful about expecting corrections in 3rd waves as 3rd waves are often linear affairs. In the event of a correction, initial resistance would be 13680.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.