Friday 10 January 2014

EURUSD, showdown

Hi Traders,

The EURUSD, now a 1.3606, reached the main descending trend line from below (weekly chart) with a two-step pattern and a double top.

After a small rally to 1.3678-1.3720 it should resume the downtrend to 1.3182 and below.

TARGETS

first: 1.3666-1.3720
then
likely: 1.3458-1.3433
possibly: 1.3356-1.3320
maybe: 1.3182

ELLIOTT WAVES

After a gigantic a-b-c-d the EURUSD performed 5 waves down (wave 1 in the weekly chart) and a retracement up with two-step pattern (wave 2 in the weekly chart).

Theoretically, this should be followed by 5 waves down well below 1.3182 if the Euro breaks this important support.




Monthly chart, click to enlarge







Weekly chart, click to enlarge





 Daily chart, click to enlarge





Wave oscillator applied to the daily chart, click to enlarge





4-hour chart, click to enlarge






wave oscillator applied to the 4-hour chart, click to enlarge





1-hour chart, click to enlarge





wave oscillator applied to the 1-hour chart, click to enlarge