EURUSD dive

Hi Traders,

Exceptional economic data in US and the perspective of the QE3 tampering  (not to mention the Syria matter) has revved up the US dollar against all major currencies and commodities.

If the Euro dives through the area 1.3205-1.3172 it might have a long way to go, as announced few times in the last month.

However, I believe that Mr. Mario Draghi and Mrs Christine Lagarde might sell some of the Euro reserves to keep the currency from falling too quickly, and this include the AUD and the SGD.

Meaning: they would short AUDUSD (target: 0.8578-0.8510) and USDSGD (target: 1.2576-1.2557) to long EURUSD. Hence keep an eye on them.

TARGETS

likely: area1.3205-1.3172

possibly: 1.3045-1.3021

maybe: area 1.2777-1.2742

ELLIOTT WAVES

The Euro stared "wave e" (daily chart) that should take it to 1.27 or lower.

ENTRY

Theoretically, I might bounce back to 1.3266 or even to the area 1.3276-1.3280. One of them could be your ideal entry point (check the 1-hour chart).

Always wait for the confirmation of the "wave oscillator" in the 4-hour and 1-hour chart.

WARNING

The volatility, the volume and the open interest (futures & options) are supposed to rise, augmenting the risk of being stopped out. Hence, choose carefully your entry point.


monthly chart - click to enlarge

weekly chart - click to enlarge

daily chart - click to enlarge

wave oscillator over daily chart - click to enlarge

4-hour chart - click to enlarge

wave oscillator over 4-hour chart - click to enlarge

1-hour  chart - click to enlarge

wave oscillator over 1-hour chart - click to enlarge