The EURUSD (60 minute chart) corrective advance may be complete. This morning’s top was near the price extreme of the former 4th wave, a common area for corrections to end. Coming under 12820 would more than likely confirm the top and shift focus to 12730. A break there exposes 12340-12420. The decline from this morning’s high is either a 3rd or C wave, so the drop will be sharp. Above this morning’s high would delay the bearish outlook and expose 12935 and 12985/13010.
The same can be said for the AUDUSD (60 minute chart). A top is probably in place at yesterday’s high and the decline from there is either a 3rd or C wave. Expectations are for price to drop below 8855 and on towards 8720, which intersects with support lines early next week. Dropping below the lines would shift focus to 8500. Again, the decline should be sharp. Above 9085 would delay the bearish outlook and expose 9145/65
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday evenings), technical analysis of currency crosses on 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 email@example.com.