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Support doesn’t really begin until 1225, but this market should move close to the 1170-1185 area before even thinking about forming any significant bottom. The area of the prior 4th wave tends to be a good area to find good reversal points. That area is still a ways away.
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The euro’s 1 hour chart appears to have signaled a reversal so far. Amazingly, despite two new major swing highs at this very deep Minute wave ((ii)) retracement, it still has not exceeded the high put in earlier this month. Now we currently have a double top formation, and lots of selling pressure capping the market’s rallies at the moment as you can see from this afternoon’s big spike and reversal. Also notice that the RSI is lagging badly, diverging from the last few highs that price has made.
The evidence is strong that the euro is at the forefront of a major decline here. I’m short again the euro and will stop out if a new high on the month is made.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.