Despite the pessimistic sentiment around europe and the fears regarding the debt crisis, EURUSD could have found a short term support around 1,2050. In the daily chart EURUSD is trending according to our expectations and has touched the middle pitchfork support. This could justify a big bounce towards 1,25. Using elliott waves we could say that we are at the final stages of the decline from February highs. However the move is not over yet despite the expected upward correction. Another new low below 1,20 is still a very possible scenario as a final 5th wave.
Taking a closer look at the intraday chart we confirm that 1,2150 has been a resistance as stated yesterday in my twitter updates. Staying above 1,2120 the market could be making a pause with this sideways movement. A break above 1,2150 and staying above that level would be my first sign that a large upward correction might have already started. The move from the lows is in 3 waves and if wave 4 and 5 are not completed then this move would certainly be an upward correction and the downtrend will resume soon.
Thank you for taking the time to read my post.
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