Euro 1.3485 Remains Bullish Line in the Sand
Written by Jamie Saettele, Senior Currency Strategist
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1.3485 remains the key level for short term EURUSD bulls. If the larger pattern is bullish, then the pair should reach 1.40-1.42 in the next week.
Repeating last night�s commentary �the beginning of a larger move is usually ugly and unclear. Such is the case here with the EURUSD. Still, wave rules have not been broken in the count presented above and there is no change to the bullish outlook - I am treating the advance from 1.3257 as a series of 1st and 2nd waves. This count is valid as long as price is above 1.3485. The EURUSD has bounced from 1.3546; the 78.6% of 1.3485-1.3773. There is a Fibonacci confluence near 1.42, which is a potential target about a week out. Euro traders may wish to take a look at Euro crosses for long term trades.
Resistance has been strong the past few days near 103, psychological resistance as well as the 50% of the decline from 108.07. This is also where wave a and c equal (if the rally from 97.88 is indeed an a-b-c advance). A bearish bias is warranted against the recent highs (103.10).
The rally from 1.6775 is an impulse (5 waves) and a corrective decline from 1.7635 may be complete at 1.7375. The position of the EURUSD suggests that a corrective decline in the GBPUSD is complete at that level, so a bullish bias is warranted. 1.8266 would be where waves C and A would be equal assuming that the rally from 1.6775 ends up as an A-B-C advance.
This Article continues HERE and includes further analysis on USD/CHF USD/CAD, AUD/USD and NZD/AUD.
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