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Chart of the Day:
Eur/Usd dropped more than 1000 pips after the 1.5143 top was hit, and did it in a very short period of time. Such a sharp move suggests that a new, temporary Short trend is in process. The market is now searching for the low of in impulse bearish structure in a Short blue wave 1)/A), before a Long wave 2)/B) reversal appears.
Once a Long wave 2)/B) reversal is complete, an even larger down-trend will be technically expected, in a blue wave 3)/C) leg towards the 1.3500-1.3570 zone.
The pair has traded into the 38.2% (1.4100) and 50% (1.3800) Fibonacci retracement zones of a previous red wave C distance, which also suggests that a mid-term bounce into a Long correction is expected. Bullish divergence is shown on the RSI indicator.
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