EUR/USD Low Possibly in Place; Above 1.2890 Would Increase Confidence
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Did the ‘initial resistance line’ nail the low? It’s too early to tell but recent action is a good start. To review, the decline from above 1.3700 is probably an impulse (5 waves) and wave 5 of the impulse is an expanding ending diagonal. In the event of another low, the November low at 1.2660 and 61.8% retracement of the rally from the July 2012 low at 1.2679 are support. It’s worth noting that next week is heavy with event risk.
FOREX Trading Strategy: Getting close – “In order to turn bullish, need to see price fall into 1.2660/80 and reverse or exceed 1.2890 from current levels.” I spoke at length about what to look for in Monday’s webinar.
LEVELS: 1.2660 1.2710 1.28201.2890 1.30471.3106