On Monday Euro/Dollar descended to the 1.4836, from where started rising up to 1.4979, closing the day at 1.4963. Of the 1 hour chart the currency couple has climbed from 1.4514 to 1.4989, forming clear upward channel. But while long range outlook seems to be under the bulls control, in the short term downward adjustments do not come unexpected. Yesterday’s correction of the European currency to the 1.4836 bottom is good key support. Break below that level might shake the ascending scenario and lead quotes further down towards 1.4705. Going above this morning’s top and first resistance 1.4995 would confirm the bullish scenario and may continue the upward momentum towards next target 1.5110. The CCI indicator is positive on the 1 hour chart, indicating ascending pressure.
What is your view on the daily EUR/USD chart? It appears to me that the instrument has completed the main 5 waves of Elliot Waves and we are now at the start of correction wave A which is a downtrend. I expect Fib retracements of 1.4797 (38.2%), 1.4736 (50%) and 1.4675 (61.8%) (please see the attached chart).
