EUR/USD: Technical Analysis
Longer term this pair could be in an Elliot wave 4 triangle with wave 5 targeting 1.42 to 1.45. The current rally would be labelled a wave D with E down poised to begin. Since most of the legs up until D have retraced slightly over 76.40% of the preceding wave it is likely that wave E will do the same yielding a downside target of 1.3810. Wave D appears to be composed of a zig-zag and then an impulse from November the 1st. The probabilities are that the final wave of the impulse will end in a zone between the 1.4058 highs and 20 points higher at 1.4078 before rolling over into wave E. If price goes above the October 25th highs at 1.4080 then it is less likely we are in a triangle with a bullish potential.
Analysis by: Forex4you.com written by Joaquin Monfort
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