Euro Pattern Clear; Short Term Resistance is Well Defined

EURUSD expectations are for a small 2nd wave to bring price back to 13640-13700 either today (Friday) or Monday. A rally presents an opportunity to short against the larger 4th wave high in anticipation of a break to a 2010 low.

The 4th wave correction in the EURUSD is most likely complete. The top is close to parallel channel resistance as well as the 38.2% retracement of the decline from 14583 (common end points for 4th waves). More importantly, the decline from 13822 is impulsive (5 waves). Expectations are for a small 2nd wave to bring price back to 13640-13700 either today (Friday) or Monday. A rally presents an opportunity to short against the larger 4th wave high in anticipation of a break to a 2010 low.

Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.

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