EUR/USD: Target At 1.4100
Trend Recognition | Dec 16, 2013 02:22AM ET
EUR/USD: 1.3739
Short-Term Trend: uptrend
Outlook: Last week we had the feeling that the EUR would rise despite our bearish expectations at the time. And, indeed the European currency advanced last week, and thus practically negated the previous wave count. To remind you, we were looking for a Diametric formation from the July 2012 low (in wave (F) ). Now, after reviewing the wave structure, we have come to the conclusion that the market has been tracing out an Expanding Triangle pattern from the July 2012 low. And wave E of this Expanding Triangle is itself and Expanding Triangle (that started in July 2013 low). So, the immediate outlook is now bullish and further gains twd 1.4045 and possibly even to 1.4571 are likely in the next couple of months.
On the downside, only a move below 1.3520 will indicate that wave (F) has likely ended already....
Strategy: The short from 1.3520 was stopped out at 1.3720. Longs are now favored at 1.3700. Stop at 1.3570. Target at 1.4100.
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