EUR/USD: Steadily Falling
Alexandros Yfantis | Apr 23, 2013 07:08AM ET
EUR/USD is slowly but steadily falling, forming a pattern with lower highs and lower lows. This is changing trend direction to down, with possible test area the 1.2920 level. Currently prices trade at the 50% retracement level among rumors of a rate cut in the next ECB meeting on May 2nd. If that is the case, the market seems to try to put that scenario into the current prices. The 61,8% retracement level is the last support that bulls could hope to see a rebound. If prices fall further than that level, then bears will be starting to control the trend.
As far as Elliott waves are concerned, the entire upward move from 1.2740 to 1.32 could very well be just wave A of the bigger degree correction. We could now be trading at wave B of the correction with expectation of a last upward wave C towards the 61.8% retracement of the 1.3720-1.2740.
For the time being as long as EUR/USD is trading below 1.3085 trend is bearish with first target the 1.2920 area. If prices break below that level then we could expect a test of 1.2850. More updates and analysis regarding this pair is sent to our subscribers which were informed promptly yesterday when I closed my USD/JPY long position at 99.75 and entered short EUR/USD at 1.3044.
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