eliottWaves_eur-usd_body_eurusd.png, EUR/USD Drops into Feb High; Trendline is Just Below

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-EURUSD has pulled back from channel resistance, 61.8% of the decline from the 2011 high (1.3833), and July 2011 low. The measured move from the recently broken 1.3645-1.3461 range is 1.3829 (1.3645 + 1.3645-1.3461).

-Price has dropped into former resistance from the Feb high. Additional support comes in from the 10/17 (high volume) close at 1.3674 and the trendline (at 1.3620 Thursday and increases about 10 pips per day).

-The line that extends off of the 2008 and 2011 highs is at about 1.3965 this week and in line with the May 2011 low at 1.3968.

Trading Strategy: Trading EURNZD – looking for a long entry at recently broken resistance (and now estimated support) at 1.6515. The estimated support zone is 1.6466-1.6515.

LEVELS: 1.3606 1.36451.3727 | 1.3772 1.3803 1.3832