Jamie's Pick: 02/09/11
The EURUSD has continued higher and focus is now on 13639-13758 (61.8% retracement and former resistance area). As mentioned yesterday – “once this small upward correction is complete, the EURUSD is expected to collapse in a powerful 3rd wave decline. It should be worth the wait.” 13860 is the key level for the bearish case.
The AUDUSD has dropped below Monday’s low but remains close to multi decade highs. Price reversed Friday to carve out a reverse hammer bearish candle. 10224 is the 2011 high to date, which is significant when viewed in light of high/low tendencies for the year. As long as that level holds, bearish potential does remain.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.