EURUSD Key Reversal

The EURUSD and USDCHF have failed to test their December 2008 price extremes of 1.4720 and 1.0370. However, the USD index did drop below its December 2008 low and has turned up in impressive fashion. It is possible that a USD bottom is in place. C waves in the EURUSD and USDCHF have yet to exceed their wave A terminus points, but truncations are possible. Something similar at the July 2008 EURUSD top. The EURUSD exceeded its March top then but the USD index DID NOT drop below its March low. We all know what happened next – the USD soared. Since the next USD rally is a large degree 3rd wave, I’d rather err on the side of being a USD bull after this week’s key reversal. Next week will be critical as the EURUSD is at a crossroads.