240 MinuteBars

eliottWaves_eur-usd_body_eurusd.png, EUR/USD Above 1.2890 Needed to Alleviate Downside

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Did the ‘initial resistance line’ mentioned yesterday nail the low? It’s too early to tell but the inside day is a good start. No change from yesterday - “The EURUSD diagonal count I’ve been tracking since 1.3133 is coming into sharper focus. The diagonal line crosses about 1.2665 on Friday. This is in line with the November low at 1.2660 and 61.8% retracement of the rally from the July 2012 low at 1.2679. Of note as well is the initial trendline from the high above 1.3700. That line has come into play as a pivot many times in the last several months.” It’s worth noting that next week is heavy with event risk.

FOREX Trading Strategy: Exchange markets are closed in the US and Europe on Friday and closed on Monday in Europe so don’t expect much until Monday night (Tuesday Asia) at the earliest. “In order to turn bullish, need to see price fall into 1.2660/80 and reverse or exceed 1.2890 from current levels.”

LEVELS: 1.2679 1.2500 1.2660/801.2890 1.30471.3106