Thursday, 2 August 2012

Upward correction not over in EURUSD

 I focus today in EURUD. Volatility will surely pick up during Draghi's speach but I favor the upside. As depicted in the chart I see 5 waves followed by 3 counter waves complete. According to wave theory another 5 wave pattern should follow the trend of the first 5 waves. The intermediate high at 1,2337 could prove my first resistance that if broken the pair could test 1,24. I could try and pick a bottom at these levels with 1,22 as a stop. That depends on how much risk anyone is willing to take. Another low below 1,22 could still happen in case the  downward correction is more complex.

Zooming out the chart we can see that the pair is above the middle pitchfork support and could test the upper pitchfork resistance at 1,25. With the resistance having  a downward slope, the pair could reach 1,2450.

No comments:

Post a Comment