Guest Commentary: Where are the Next 300 EURUSD Pips?!
* Is this a reversal or a correction in the Euro? This is a question we need to answer as the Euro approaches the 1.2480 (Equality C=A) target.
* We have now started reducing longs from last week at least for consolidation if not a new downtrend.
* The next drop will be important and arguably the hardest to determine. Flexibility will be Key!
The Euro remains within a corrective recovery from 1.2045.
After the constructive rally to 1.2385 and the irregular correction beyond the 61.8% to the c=1.618a target of 1.2135, the Euro is consolidating the break to new highs and therefore reducing the risk of the typical Sunday night top.
As such we remain long now expecting 1.2345-1.2440 consolidation to break up to an ideal c=a objective of 1.2480 and 61.8% of the decline from 1.2750 likely channel top and Andrews Pitchfork resistance.
Enough clearly to exit longs which we have already started and looking to square and sell the next new high for at least a return to pivotal 1.2290 support but with potential to resume the downtrend.
Failure to sustain this sell off beyond 1.2135 or indeed a rally through 1.2500-20 not only extends the correction to 1.2575 but also 1.2690 the C=1.618A. Our Stops are 1.2520 then.
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