EURUSD, double top

Hi Traders,

Once again, the EURUSD (now at 1.3342) went through the resistance at 1.3450 and retreated, forming a double top (weekly chart) and starting a new downtrend.

TARGETS

likely: area 1.3294-1.3300
possibly: area 1.3208-1.3185
maybe: 1.3102

ELLIOTT WAVES

The weekly and daily charts show that "wave d" should be followed by "wave e" downwards. In the daily chart this is confirmed by an "harami" candlestick pattern and in the 4-hour chart but a much more deadly "breakaway pattern" followed by 5 red candles.

ENTRY

These 5 red candles are usually the prelude to a small rally. The Wave Oscillator shows already some sign of it. Hence, wait for this rebound before entering your trend. Minimum rebound: area 1.3353-1.3355 but it could be a bit higher.

RUMORS

Some traders say that, after the BRICS + Australian + Japanese currencies (and many other more) lost value against $US, it  is just a matter of time for the Euro to follow, arguing that money is now moving back to USA.

It this occurs, the Euro might dive to 1.24, 1.19 and even 1.12. Let's see how it goes.




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