Euro Impulse Rally Maintains Short Term Bullish Outlook

Commentary: We presented the most bearish count yesterday but also warned that “the entire decline may be just an a-b-c correction, which leaves the EURUSD vulnerable to another high (above 1.4281).”

Short term price action has cleared things up. Yesterday?s rally from 1.4067 was an impulse and the decline since is corrective, so favor the upside and a test of 1.4281. Strength above 1.4281 (if price reaches there) should prove marginal though. We do expect at least a return to 1.3828 (former 4th wave) and possibly 1.3712 (61.8% of 1.3360-1.4281) over the next 3 to 4 weeks.

Strategy: Bullish now, against 1.4076, target 1.4230