*Daily Pivots:* S3: 1.3455; S2: 1.3511; S1: 1.3568; P: 1.3630; R1:
1.3686; R2: 1.3748; R3: 1.3809
*EUR/USD:* While it appears that the go up to 1.3863 completed a
5-wave sequence for the C leg of wave 2 or B, 1.3863 must hold on the
topside for us to see further drops in the EUR/USD. If 1.3863 is taken
out then we will likely see slightly higher levels as discussed last
week up to the 1.4000 level. As long as 1.4283 is not breached, the
EUR/USD has room to go lower by all counts. Let us focus on the recent
peak at 1.3863 and the subsequent go down to 1.3507. The go down
appears to be a nice 5-wave sequence which so far has corrected 50% of
the way up to 1.3691. A continued go down would require price to break
down through 1.3611 followed by 1.3507. Once 1.3507 is broken, 1.3335
is the embattled go of equality which would be a smallest target. If
we are indeed beginning a wave 3 down, then price will very promptly
come back to the previous low of 1.2859. To summarize, we are prepared
to sell rallies to 1.3863 or look for a break of 1.3507 to sell. We
use Elliott Wave to get a roadmap of what's to follow, but EW is
simply a science of patterns which repeat fractally in every time
frame. Once a trader understands the patterns, one can trade any time
frame for profits! Sometimes when the road is muddy in the larger
scenario, and there are multiple paths to take, it makes sense to
drill down to a lower time frame to make day trading profits and call
it a day!
If you are an advanced Forex trader and want to learn Elliott Wave
analysis, please contact me. If you are interested in signing up for a
FREE 60-minute Starter Session, to assess where you are in your
trading, please send an send by e-mail to jody@fxtradersedge.com.
Pleased Trading!
Source: Fxstreet.com
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