Euro Technical Outlook

The push above channel resistance suggests to me that the EURUSD corrective advance from 1.2510 is not yet complete. In fact, recent developments suggest a rally through 1.3742 and possibly as high as 1.4150-1.4200 (61.8% of decline from 1.4723 and 100% extension of 1.2510-1.3742). Staying above 1.2965 keeps this outlook intact and there is short term Fibonacci support at 1.3125. There is one count that treats the current decline as an ending diagonal…I do not see this count as probable given the break of the channel AND the break higher in stocks yesterday (assuming that recent correlations hold). I’ll probably attempt to go long in the next few days against 1.2965.