Watch for an Exhaustion Move into a Near Term Dollar Top
As focused on in recent days, “a new low would potentially complete 5 waves down from 13822, which in turn would complete 5 waves down from 15150. There is a cluster of Fibonacci objectives in the mid 12300s, which is also near the 2008 low (12327).” The EURUSD is approaching the 2008 low (12330), which is reinforced by the mentioned Fibonacci extensions AND several downward sloping support lines. I am on the lookout for some sort of exhaustion move. Move risk on shorts down to 12580. Keep an eye on USDCHF resistance (see USDCHF comments).
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 email@example.com.
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