eliottWaves_eur-usd_body_eurusd.png, EUR/USD Nasty False Break-Support at 1.2970

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The EURUSD took out yesterday’s breakout bar (negating the breakout of course) as well as the prior 5 days’ lows. Price may very well trade lower but strong support is seen at 1.2934/67, which is the close of the reversal day, 50% retracement of the rally from 1.2744, and 4/8 low. The sharp nature of the decline is worrisome but let the dust settle and see if price reacts at 1.2970 before abandoning a bigger constructive outlook. Consider that the EURUSD low was made early in the month and being bullish on dips isn’t so frightening. Keep the 2010-2011 analogy in mind too.

FOREX Trading Strategy: The drop below 1.3020 wiped out longs but focus is now on 1.2934/67. I’m playing for a larger bull move and want to establish longs in that zone.

LEVELS: 1.2842 1.2919/34 1.2970 1.3227 1.33071.3414