Higher Bonds Means Higher EUR/USD
Gregor Horvat | Sep 27, 2013 10:11AM ET
US bonds are still pushing higher, now at the new high of the week within wave 5 of 3) targeting 121.26 on five year and 126.70 on 10 year US noted. Correlation with USD is still negative so EUR remains supported as bonds rise. We however could see a retracement next week as we know that after every five waves correction follows. This will be a corrective wave 4) then.
EUR/USD is now finally accelerating to the upside which we suspect its wave iii in red wave v) that is expected to reach levels above 1.3600 in the next few sessions and probably higher after that if we consider that move from 1.3460 should unfold in five waves. Trend on euro remains bullish as long as market trades above 1.3472.
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