Euro 1.3485 Remains Bullish Line in the Sand

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Euro 1.3485 Remains Bullish Line in the Sand

Written by Jamie Saettele, Senior Currency Strategist

DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.

1.3485 remains the key level for short term EURUSD bulls. If the larger pattern is bullish, then the pair should reach 1.40-1.42 in the next week.

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Repeating last night’s commentary “the beginning of a larger move is usually ugly and unclear. Such is the case here with the EURUSD. Still, wave rules have not been broken in the count presented above and there is no change to the bullish outlook - I am treating the advance from 1.3257 as a series of 1st and 2nd waves. This count is valid as long as price is above 1.3485. The EURUSD has bounced from 1.3546; the 78.6% of 1.3485-1.3773. There is a Fibonacci confluence near 1.42, which is a potential target about a week out. Euro traders may wish to take a look at Euro crosses for long term trades.

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Resistance has been strong the past few days near 103, psychological resistance as well as the 50% of the decline from 108.07. This is also where wave a and c equal (if the rally from 97.88 is indeed an a-b-c advance). A bearish bias is warranted against the recent highs (103.10).

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5 waves up from 1.0686 and 3 waves down to former support is bullish for the USDCHF. The alternate is still bullish, but the next leg up advance would not occur until a drop below 1.1125 that completes a larger correction from 1.1493.


This Article continues HERE and includes further analysis on USD/CAD, AUD/USD, NZD/AUD.

DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.
 
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