This is an update to the April 30th article “Euro and Stocks: Wave Structures Updates”. The forecast that was laid out in that article, calling for a EURUSD rally to exceed 1.3740 (and perhaps reach 1.4000) and the Dow to rally eventually to 10000 or so is on track. At this point, the EURUSD wave structure is bullish as long as price is above 1.3250. Objectives defined by various measurements range from 1.3800 to 1.4250 (Fibonacci). [B]Short term Fibonacci support is at 1.3430 and 1.3490. Look to enter near these levels against 1.3250.[/B]
With waves A and B of a 3 wave (A-B-C) correction complete at 7792, the first point at which to expect a top is where waves A and C would be equal; this is at 9513. There is short term support at 8100 and the structure is bullish as long as price is above 7792.
