eliottWaves_eur-usd_body_eurusd.png, EUR/USD Late February Trendline is Key to Next Move

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The EURUSD technical picture continues to improve. On Monday, range was large (largest in at least 60 days…constitutes a JS Thrust) and CME volume was the largest since 8/2/12. Range and volume of this size are typical towards the end of moves. The January low at 12996 has held for 2 days, creating a 2x2 pivot low (the first since 2/15) in the process. EURUSD behavior this week is similar to early January action.

FOREX Trading Strategy: “Evidence is constructive and I wouldn’t be short here but there isn’t enough evidence to rule out a final test or drop below 13018 either.” Tomorrow (first of the month) and Monday are critical to the next move.

LEVELS: 12875 12996 1301813161 1319613245