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Eur/Usd Daily Chart: Correction Expected

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Oct 17 2010

Eur has reached new highs against the US dollar in the past week around 1.4150 but prices fell on Friday, and closed below important 1.4000 psychological level. A downside reversal or at least deeper correction may be near, especially as we can also count a clear five waves up from 1.2587 wave (NYSE:B)/(2) low. Elliott wave traders will know that once a five wave move is done change in trend appears! As such, a break below 1.3775 wave 4) low and daily close below the red trend line at the same time, will confirm that lower prices are underway.

The RSI indicator already moved below its trend line support and suggests that move from 1.2587 is near completion. Bearish cross on a MACD will be another signal for US dollar recovery.

Eur/Usd Daily Chart:



Disclosure: no pos